Common Issues When Applying for Business Banking (and How to Overcome Them)

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Common Issues When Applying for Business Banking (and How to Overcome Them)

Real-world obstacles entrepreneurs face—and how iFiler helps you overcome them with confidence.

Opening a business bank account is a crucial step in running a compliant, organized, and scalable company. But for many new entrepreneurs—especially non-residents—this step isn’t always straightforward. Confusing requirements, documentation issues, and rejections from traditional banks can lead to delays, frustration, and financial roadblocks.

In this blog, we’ll explore the most common challenges entrepreneurs face when applying for a business bank account in the USA or UK—and how to overcome them efficiently with the right guidance and tools.

🛑 1. Missing or Incomplete Business Documents

The Problem:
Most banks require several key formation documents. Many applicants are rejected simply because they’re missing one piece of paper—or they uploaded the wrong version.

Documents commonly required:

  • Articles of Organization or Incorporation (LLC or Corporation)

  • EIN (Employer Identification Number)

  • Operating Agreement or Shareholder Agreement

  • Business address and contact info

How to Solve It:
At iFiler, we provide a complete, verified set of formation documents when you form your company with us. We also guide you step-by-step on what each bank requires—so you won’t be guessing or using outdated files.

🌍 2. Non-Resident Founder Challenges

The Problem:
Traditional banks often expect applicants to have:

  • A U.S. Social Security Number (SSN)

  • A local physical address

  • A personal visit to the branch

This can be a major hurdle for international founders.

How to Solve It:
Fintech banks like Mercury, Relay, Payoneer, and Wise are non-resident-friendly and allow remote onboarding. iFiler helps you:

  • Form a U.S. or UK company

  • Apply for an EIN or ITIN

  • Set up a virtual U.S. business address

  • Prepare the correct ID and supporting documents

With our guidance, most non-residents can open a business bank account online—without ever traveling to the U.S.

💬 3. Name Mismatches or Typos

The Problem:
If your business name on documents doesn’t exactly match the name on your banking application (or has spelling inconsistencies), banks may:

  • Flag your application

  • Delay approval

  • Ask for a resubmission

How to Solve It:
Before applying, iFiler cross-checks your formation docs, EIN letter, and application materials to ensure that all names match perfectly. This saves time and avoids unnecessary back-and-forth with the bank.

🧾 4. Lack of EIN or ITIN

The Problem:
Many U.S. banks require your company’s EIN (Employer Identification Number). If you’re a non-resident, you may also need an ITIN (Individual Taxpayer Identification Number).

Applying for these through the IRS can be slow and complex without help.

How to Solve It:
iFiler provides fast EIN filing (often in 1–3 business days) and ITIN assistance for international clients. We handle the paperwork and communicate directly with the IRS to ensure your tax ID is accepted.

📧 5. Rejected Due to Business Type

The Problem:
Banks sometimes reject applications from businesses in “high-risk” industries such as:

  • Dropshipping

  • Cryptocurrency

  • Adult content

  • Freelance or remote services with no physical presence

How to Solve It:
We help you position your business in a way that aligns with acceptable banking categories. This includes:

  • Describing your business activities accurately

  • Choosing the right business classification (NAICS code)

  • Advising on fintech banks that are more flexible with startups and online models

💻 6. Confusion Around Fintech vs Traditional Banks

The Problem:
Entrepreneurs often don’t know whether to use a traditional bank (like Chase or Barclays) or a fintech solution (like Mercury or Wise). Choosing the wrong one can delay account approval or limit your ability to integrate payment processors.
How to Solve It:
At iFiler, we assess your:

  • Business type

  • Country of residence

  • Target market

  • Payment needs

Based on that, we recommend the best banking partner and even walk you through the application—step by step.

🧠 7. Overwhelmed by the Process

The Problem:
Between documents, identity verification, compliance questions, and online forms, the process of opening a business bank account can feel overwhelming for new entrepreneurs.
How to Solve It:
Our team at iFiler provides white-glove support. We:

  • Explain the process in plain language

  • Help you gather and complete your documentation

  • Match you with the right bank for your situation

  • Support you until your account is live and usable

We make it simple—even if it’s your first time starting a business.

💡 Bonus Tips to Ensure Approval

  • Always double-check your document names and upload formats (PDF preferred)

  • Be honest about your business model—but use clean, professional language

  • Make sure your personal ID is clear, unexpired, and matches your company documents

  • Use a consistent business address across all applications

  • Avoid high-risk banking behaviors early on (e.g., large foreign wire transfers with no explanation)

🚀 Start the Right Way With iFiler

We help founders—especially non-residents—open business bank accounts with zero guesswork.

✅ Form your LLC or Ltd Company
✅ Get your EIN/ITIN fast
✅ Access Mercury, Payoneer, Wise, and more
✅ Full banking setup guidance
Need banking help?
Let iFiler handle the hard parts so you can focus on launching, selling, and scaling your business.

 

👉 Get Started with iFiler