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How to Open Separate Business Bank Accounts Even with a Bad ChexSystems Report

Faith Stewart
February 24, 2022
business bank accounts Credit Suite

If you have a bad ChexSystems report, it can be hard to open a separate business bank account. Having separate business bank accounts is vital to Fundability. If you have issues on your ChexSystems report, these options may work for you.

  • LendingClub Tailored Business Checking
  • BBVA Business Connect Checking
  • Bluevine
  • Nearside
  • Novo Bank

Why You Need Separation for Business Bank Accounts

business bank accounts Credit SuiteThere are a number of reasons for this. The most obvious is the IRS. They want to see business funds and personal funds separated. It’s much easier to provide this information if your accounts are already separate.

Also, your business banking history is important when it comes to Fundability. Not only that, but many lenders require a separate business bank account. They actually make it a requirement for funding approval.

This may be the most surprising reason however. The opening date of your business bank account can affect time in business. Some lenders consider the date the business account opens to be the date the business began. For example, say you opened your business a year ago.  Then, 6 months ago you opened a business bank account. Some lenders may consider your business to have begun 6 months ago, not a year ago.

The longer your business banking history, the better your borrowing potential is. More than that, many funding options require at least a year in business. As you can see, you shouldn’t wait to open a bank account for your business.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

What’s the Catch?

Here’s the thing. Opening a business bank account may not be so easy if your personal banking history isn’t great.  Most banks use ChexSystems when determining whether they are going to let someone open an account.

As a result, your ChexSystems report can affect your ability to open business bank accounts. If you have an issue on your report, you may have a hard time opening a business account at a bank that uses ChexSystems.

Issues may include NSFs, closed accounts, and overdrafts. Many people have no idea ChexSystems even exists until they cannot get a loan or open an account because of it..

Don’t Let ChexSystems Destroy Your Fundability

The best thing is to avoid overdrafts, NSFs, and closing accounts. But, what if it’s too late? What if you already have a bad ChexSystems report?  There are some banks out there that offer business bank accounts without taking ChexSystems into account.

5 Business Bank Accounts That Do Not Use ChexSystems

1.     LendingClub Tailored Business Checking

  • LendingClub has a monthly fee of $10 that is waived if the average monthly balance is at least $5,000
  • Unlimited fee-free transactions
  • No ATM fees regardless of the ATM you use and unlimited refunds for fees charged by other banks
  • Available nationwide

3. BBVA Business Connect Checking

  • BBVA has no monthly fee
  • Up to five free withdrawals and/or processed checks in-branch per month, $1 after that
  • Up to two free in-branch deposits per month, $4 after that
  • Other transactions not mentioned are unlimited and free
  • No ATM fees from BBVA either in or out of network
  • Third-party ATM fees waived within the Allpoint network.
  • Available in Alabama, Arizona, California, Colorado, Florida, New Mexico, Texas.

4.  Bluevine

  • Bluevine offers a $0 minimum opening deposit
  • No monthly service fees or NSF fees
  • No minimum deposit or balance requirements
  • 50% APY interest rates for accounts over $1,000
  • No ATM fees at 38,000+ MoneyPass® locations nationally

5.     Nearside

  • Nearside has no monthly minimums
  • No NSF fees
  • Cashback rewards and perks.


6.     Novo Bank

  • Novo has no monthly fees or minimum balance requirements
  • Free transfers, mailed checks, and incoming wires
  • Refunds all ATM fees


Information You May Have to Provide to Open Business Bank Accounts

Each lender will have their own process for approving you to open a business bank account.  However, here is some general information you need to be able to provide just in case.

Business Information

Depending on how your business is set up, you’ll need to be prepared to provide a copy of incorporation papers and EIN. If you are not incorporated or do not have an EIN, you may still be able to open an account.  However, you need to incorporate and get an EIN for Fundability purposes.

Personal Information

They may also ask for your social security number, a state issued ID, a U.S. address and a U.S. phone number. If you are incorporated, they will typically use these for identification purposes only in an effort to prevent fraud.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Business Bank Accounts are Non-Negotiable

For your business to be Fundable, you need a separate business bank account. It is necessary to get funding from many different vendors and lenders. Beyond that, it is also necessary to get a merchant account. You must have a merchant account to accept credit card payments. Studies show people spend more when they can use credit, so it’s pretty important to have this option. Even if it isn’t something you need now, you likely will eventually.

If you have had issues with your personal bank account, these banks can help. Open your separate business bank account and start building positive business banking history. The future of your business depends on it.

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