Online Business Checking Account No Credit Check Requirements: Here Are the 4 Best Options to Consider

Min Read

David Maina

David is an experienced B2B financial copywriter, specializing in content related to accounting, financial planning, and small businesses. Over the years, he has helped fintech brands win more traffic and skyrocket conversions with engaging, long-form content. A nerdy interest in numbers, and passion for creative writing drives him to create financial content that's truly unique. You can reach him at financeandinsurancewriter.com

If you’ve been denied a business checking account in the past, you know how difficult it can be to find a bank that will work with you. Without a way to accept payments or manage your finances, your business may struggle to function.

There's a solution, however – plenty of online business checking accounts don't use ChexSystems credit checks.

ChexSystems is a consumer reporting agency that collects information on consumers who have misused their checking and savings accounts. This includes items like writing bad checks, having an account closed for cause, or having excessive overdrafts. It's an overview of your personal banking history.

If you have a blemish on your ChexSystems report, it can be very difficult to open a new business checking account.

Fortunately, there are a few online business checking accounts with no credit check requirements.

Note: Open a business account online today with Bonsai Cash. Our business bank account is guaranteed for approval and does not run a credit report. Not to mention there are no hidden fees or opening deposit requirements. Click here to try a free business checking account today.

The Best Business Checking Accounts Online Without A Credit Check

Second chance checking accounts are more available in the consumer space. For instance, although Chime does not offer business checking accounts, they do have a second chance personal bank account with no ChexSystem. Regardless whether or not a bank uses a ChexSystem report, they may usually check your credit score in order to open a business checking account online.

Luckily, there are places online to open a business account without running a credit report.

Whether you’ve been burned by bounced checks or mismanaging a previous business checking account, these checking accounts can give you a shot at starting fresh with your finances:

Bonsai Cash
BlueVine
Novo

Bonsai Cash - The Best Business Bank Account

Business checking accounts are often equated with high fees – and for the most part, this is true. As a small business owner, you often have to pay fees for things like account maintenance, wire transfers, and even deposited checks.

Bonsai Cash was designed to eliminate those fees and help small business owners save money. With no monthly maintenance fees, no minimum balance requirements, and no transaction costs, you can keep more of your hard-earned cash in your pocket.

The business checking account gives you complete control over your business finances. With the Envelopes feature, you can save money more efficiently and ensure your business runs smoothly. It allows you have one business account with sub-accounts to better organize your finances.

You can set aside funds for specific purposes such as salaries, business expenses, and taxes. Bonsai automates the process of adding funds into these envelopes. For instance, if you’re saving for tax payments and business expenses, you can set your account to send 20% of all incoming funds to the “tax payments” envelope, and the remaining 80% to the “business expenses” envelope.

Bonsai Cash doesn’t run any credit checks, and opening an account with them only takes a few minutes. You only have to provide a few details about you and your business, and you’ll be ready to go.

Click here to open a new bank account online. No minimum balance requirement or hidden fees.

BlueVine Business Checking Account

BlueVine is a bank that caters to small businesses, providing basic banking services such as online checking, transfers, and ATM access.

The online bank offers one of the most competitive APYs for business checking accounts, at 1.5% interest up to $100,000. To earn this interest, you must use your BlueVine Business Debit card to make $500 monthly purchases or receive $2,500 monthly payments into your account via wire transfers, ACH, or mobile deposits.

Since BlueVine is an online bank for small businesses, they are focused on lowering costs and simplifying the banking process. So you can count on free, easy online access to their checking accounts with no monthly service charge – plus other great features such as invoice factoring, loans, and flexible business payments. This makes them a one-stop-shop for all your small business needs.

That said, BlueVine doesn't run credit checks for a Limited Liability Company (LLC) or corporations. The bank, however, runs credit history checks for business entities such as sole proprietorships and partnerships.

Novo Business Bank Account

Novo Bank is a newer online bank, but it is quickly making a name for itself in the business world. Novo Bank offers a business checking account with no credit check, no monthly fees, and no minimum balance requirements.

The bank's online platform is user-friendly and intuitive, and you can set up an account within minutes. Once your account is open, you'll have access to features such as online bill pay, ACH transfers, and mobile check deposits.

Novo is compatible with several popular online applications used by tech-savvy businesses. The platform integrates with Xero accounting, Stripe, Shopify, and Quickbooks, among other platforms. It also sends Slack alerts and enables international money transfers via TransferWise.

That said, Novo banking is designed to be customer-centric: Apart from integrations with several business tools, Novo offers additional financial planning and budgeting solutions to help small business owners save money and time.

For instance, the banking platform offers Novo Reserves, a service that allows you to set aside money for particular reasons, such as taxes, payroll, and other costs. You can establish up to five Reserves in your account, each of which can be used for several different budgets and objectives.

NorthOne Banking

NorthOne provides fee-free transactions across several different channels, including payments, deposits, transfers, and debit card usage. The banking platform doesn't charge for ACH payments or have fees for non-sufficient funds or overdrafts.

You can use your debit card to withdraw cash for free at any Mastercard Cirrus or MoneyPass ATM in the United States, as long as you have a NorthOne credit/debit card. Note that the operator of each individual ATM may, however, charge a fee.

You can also link your account to as many third-party applications as you like with NorthOne business banking. NorthOne connects with a variety of enterprise tools, including QuickBooks, Wave, Expensify, Shopify, and FreshBooks. Thanks to these integrations, you can synchronize transaction details and receipts, collect payments, and view invoices, among other things.

NorthOne offers an easy-to-use app that works seamlessly on any smartphone or tablet. Its simple design allows you to browse your bank account, make mobile check deposits, or contact customer service with ease. It offers all of the features of a traditional bank with the added convenience of being able to access the platform from anywhere.

The biggest drawback of this business bank account, however, is that it charges a $10 monthly fee for its services, which you can not waive. Even though $10 is a relatively low cost – given that you get unlimited monthly transactions, deposits, and transfers – there are several competing business checking accounts that either charge no monthly fee or have one that can be waived by maintaining a minimum balance or meeting other similar requirements.

What do you need to open a business checking account with no credit checks?

To open a business checking account with no credit check at any of the banks listed above, simply follow the instructions on the bank's website.

Documents You May Need

Most banks will require you to submit some or all of the following documents:

A copy of your business license or formation documents
Your EIN or Social Security Number (some banks don't require an EIN or no SSN to open an account)
Photo ID (driver's license, passport, etc.)
Proof of address (utility bill, lease agreement, etc.)

Once you've gathered all of the required documents, you can begin the application process by creating an account on the bank's website.

On some occasions, you'll need to deposit money into your account. The amount you'll need to deposit will vary depending on the bank, but it's typically between $0 and $100. After your account is funded, you can start using it just like any other checking account.

Most online business checking accounts offer similar features and benefits, so choosing the right one for your business will come down to factors like cost, convenience, and customer service. Consider your needs and compare the features of each account to find the best fit for your business.

Alternative options to consider

Here are a few other ways you can open a no ChexSystems business account:

Credit Unions

You can try opening a business account with a credit union. Credit unions are financial cooperatives that often have more lenient requirements for membership and account approval than banks.

That’s because credit unions are member-owned, meaning their primary focus is on serving their members rather than making profits. As a result, credit unions typically have easy approval requirements, making them a good option for those with a negative ChexSystems report.

Keep in mind, however, that each credit union has its own eligibility requirements so you’ll need to do your research to find one that’s right for your business. Some credit unions may not use ChexSystems at all when you apply for an account, while others may consider your application on a case-by-case basis.

Community Banks

Another option for opening a business checking account with no ChexSystems report is a community bank or local banks. Many local banks and credit unions are much more flexible to open a business banking account.

Unlike large national banks, community banks are typically locally owned and focused on serving the needs of their local communities.

This can make them more flexible when it comes to approving businesses for checking accounts, even if they have a negative ChexSystems report.

Again, however, each bank has its own approval process, so you’ll need to do your research to find a community bank or credit union that’s right for your business.

Second Chance Banking Accounts

If you’ve been denied a business bank account because of your ChexSystems report, you may be able to open what’s known as a second chance banking account.

These accounts are designed for consumers with negative ChexSystems reports and typically come with fewer features and higher fees than a traditional checking account.

While they may not be ideal, second chance banking accounts can help you get your financial footing back and eventually qualify for a traditional checking account.

Prepaid Debit Cards

If all else fails to open a business bank account, consider applying for a prepaid debit card account.

With a prepaid debit card account, you can load money onto the card and use it to make purchases or withdraw cash from ATMs, similar to a regular debit card.

Prepaid debit cards are easier to get approved for than traditional bank accounts because there’s no credit check required.

However, prepaid debit cards typically come with fees, such as monthly maintenance fees, transaction fees, and ATM withdrawal fees, so you’ll need to weigh the costs before deciding if this is the right option for your business.

Tips to Improve Your ChexSystems Report

If you’ve been denied a business checking account because of your ChexSystems report, there are some things you can do to improve your record and eventually qualify for a traditional checking account.

Request your report

You’re entitled to one free copy of your ChexSystems report per year. Requesting a copy of your report is a good way to stay on top of your record and identify any errors that may be affecting your chances of getting approved for an account.

Dispute errors

If you find any errors on your credit report, you can dispute them with the credit bureau. ChexSystems is required to investigate any disputes that are filed and remove any incorrect information from your report.

Pay outstanding debts

If you have any outstanding debts, such as unpaid bank fees or bounced checks, make arrangements to pay them off as soon as possible. Once you’ve paid off your debts, contact ChexSystems and ask them to remove the negative items from your report.

Wait it out

Sometimes, you may just need to wait it out. Negative information typically stays on your report for five years, after which it will be automatically removed. In the meantime, consider opening a second chance banking account or a credit union account to help you manage your finances.

While a ChexSystems report can make it difficult to open a business checking account, there are still options available to you. Researching your options and taking steps to improve your ChexSystems report can help you get the account you need to manage your business finances.

What Defines a Verbal Contract?

A verbal contract (formally called an oral contract) refers to an agreement between two parties that's made —you guessed it— verbally.

Formal contracts, like those between an employee and an employer, are typically written down. However, some professional transactions take place based on verbally agreed terms.

Freelancers are a good example of this. Often, freelancers will take on projects having agreed on the terms and payment via the phone, or an email. Unfortunately, sometimes clients don't pull through on their agreements, and hardworking freelancers can find themselves out of pocket and wondering whether a legal battle is worth all the hassle.

The main differences between written and oral contracts are that the former is signed and documented, whereas the latter is solely attributed to verbal communication.

Verbal contracts are a bit of a gray area for most people unfamiliar with contract law —which is most of us, right?— due to the fact that there's no physical evidence to support the claims made by the implemented parties.

When is a Verbal Agreement Legally Binding?

For any contract (written or verbal) to be binding, there are four major elements which need to be in place. The crucial elements of a contract are as follows:

Offer and acceptance: An offer is made and accepted by another party involved in the agreement;
Consideration: The involved parties must exchange something of value (money, a service, time, etc), this is known as consideration;
Intention and certainty: All parties must fully understand the terms of the contract and intend to make a legally binding agreement freely; and
Capacity: The parties must have the capacity to legally enter into the contract; they're above age and of a stable mindset.

Therefore, an oral agreement has legal validity if all of these elements are present. However, verbal contracts can be difficult to enforce in a court of law. In the next section, we take a look at how oral agreements hold up in court.

How strong is a verbal agreement in court?

Most business professionals are wary of entering into contracts orally because they can difficult to enforce in the face of the law.

If an oral contract is brought in front of a court of law, there is increased risk of one party (or both!) lying about the initial terms of the agreement. This is problematic for the court, as there's no unbiased way to conclude the case; often, this will result in the case being disregarded. Moreover, it can be difficult to outline contract defects if it's not in writing.

That being said, there are plenty of situations where enforceable contracts do not need to be written or spoken, they're simply implied. For instance, when you buy milk from a store, you give something in exchange for something else and enter into an implied contract, in this case - money is exchanged for goods.

Are you a freelancer?
Join 150,000+ freelancers using Bonsai's free contracts & invoices.

get started now

When are verbal agreements not enforceable?

There are some types of contracts which must be in writing.

The Statute of Frauds is a legal statute which states that certain kinds of contracts must be executed in writing and signed by the parties involved. The Statute of Frauds has been adopted in almost all U.S states, and requires a written contract for the following purposes:

The sale of real estate or vehicles
Real estate leases lasting longer than one year.
Property transfer following the death of the owner.
The case of a party agreeing to pay debt for someone else.
Any contract that requires more than a year to fulfil.
A contract involving and exceeding a specified amount of money (which varies by state).

Typically, a court of law won't enforce an oral agreement in any of these circumstances under the statute. Instead, a written document is required to make the contract enforceable.

Contract law is generally doesn't favor contracts agreed upon verbally. A verbal agreement is difficult to prove, and can be used by those intent on committing fraud. For that reason, it's always best to put any agreements in writing and ensure all parties have fully understood and consented to signing.

How are Verbal Contracts Enforced?

Verbal agreements can be proven with actions in the absence of physical documentation. Any oral promise to provide the sale of goods or perform a service that you agreed to counts as a valid contract. So, when facing a court of law, what evidence can you provide to enforce a verbal agreement?

How can you prove an oral contract?

Unfortunately, without solid proof, it may be difficult to convince a court of the legality of an oral contract. Without witnesses to testify to the oral agreement taking place or other forms of evidence, oral contracts won't stand up in court. Instead, it becomes a matter of "he-said-she-said" - which legal professionals definitely don't have time for!

If you were to enter into a verbal contract, it's recommended to follow up with an email or a letter confirming the offer, the terms of the agreement , and payment conditions. The more you can document the elements of a contract, the better your chances of legally enforcing a oral contract.

Another option is to make a recording of the conversation where the agreement is verbalized. This can be used to support your claims in the absence of a written agreement. However, it's always best to gain the permission of the other involved parties before hitting record.

Written vs Verbal Contracts: What's the Verdict?

Fundamentally, most verbal agreements are legally valid as long as they meet all the requirements for a contract. However, if you were to go to court over one party not fulfilling the terms of the contract, proving that the interaction took place can be extremely taxing.

So, ultimately, the question is: written or verbal agreements?

Any good lawyer, contract law firm, or legal professional would advise you to make sure you formalize any professional agreement with a written agreement. Written contracts provide a secure testament to the conditions that were agreed and signed by the two parties involved. If it comes to it, a physical contract is much easier to eviden in legal circumstances.

Freelancers, in particular, should be aware of the extra security that digital contracts may provide. Many people choose to stick to executing contracts verbally because they're not sure how to write a contract, or they think writing out the contract terms is too complicated or requires expensive legal advice. However, this is no longer the case.

"@bonsaiinc is probably my all time favorite freelance tool. hands down. the team is super responsive and accessible when i have questions."

David Urbinati

Motion design / animation

Say hello to digital contracts

Today, we have a world of resources available at our fingertips. The internet is a treasure trove of invaluable information, platforms, and software that simplifies our lives. Creating, signing, and sending contracts has never been easier. What's more, you don't have to rely on a hiring a lawyer to explain all that legal jargon anymore.

There are plenty of tools available online for freelancers to use for guidance when drafting digital contracts. Tools like Bonsai provide a range of customizable, vetted contract templates for all kinds of freelance professionals. No matter what industry you're operating in, Bonsai has a professional template to offer.

Benefits of written contracts

A written contract makes the agreement much easier to prove the terms of the agreement in case something were to go awry. The two parties involved can rest assured that they're legal rights are protected, and the terms of the contract are sufficiently documented. Plus, it provides both parties with peace of mind to focus on the tasks at hand.

Create Professional Contracts with Bonsai

Bonsai's product suite for freelancers allows users to make contracts from scratch, or using professional templates, and sign them using an online signature maker.

With Bonsai, you can streamline and automate all of the boring back-office tasks that come with being a freelancer. From creating proposals that clients can't say no to, to sealing the deal with a professional contract - Bonsai will revolutionize the way you do business as a freelancer.

Why not secure your business today and sign up for a free trial?