2 min read
Why a business account matters
Lenders assess company trading through its bank statements. A dedicated business account shows income and outgoings clearly and lets funds be advanced and repaid cleanly. It is also expected good practice for a limited company, whose finances are legally separate from the director's.
The problem with mixing
Running company money through a personal account muddies the turnover picture, complicates tax, and forces a lender to untangle what is business and what is not — slowing or stalling the assessment. Separating banking before you apply pays off.
Applying
Trade through a business account, then connect it or share statements and apply online.
Frequently asked questions
Can I use my personal account for the company loan?
It is strongly discouraged and often unworkable. Lenders need to see clean company trading, and a limited company's finances should be legally separate from the director's.
Do I need to connect open banking?
Not mandatory, but connecting the business account via open banking is the fastest, cleanest way for a lender to verify trading and reach a decision.
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