Founders 8
Start now
US business banking: eligibility, approval and what to do when you're rejected

Fix it · 2 min read

Your business bank account was closed: what to do now

The urgent problem is not the reason. It is getting the money out and keeping the business running while you find a replacement.

The short answer

When a financial institution closes a business account, first confirm in writing where the balance will be sent and when. Request the reason in writing, though the institution may be legally constrained from giving one. Closures often reflect de-risking of an entire customer category rather than anything the customer did.

What usually happened

Two situations look identical from outside. One is a decision about you specifically — activity that did not match your stated business, a spike the monitoring system could not explain, a restricted category. The other is de-risking: the institution exiting a whole class of customer, by country, industry or model, because the compliance cost is not worth the revenue.

The second is more common than founders assume, and there is nothing to appeal, because the decision was never about you.

The sequence

  1. Secure the funds. Written confirmation of destination and date.
  2. Redirect incoming payments. Payment processors, marketplaces and clients all need new details before the account stops accepting deposits.
  3. Request the reason in writing. You may not get one; the request still matters if you escalate.
  4. Do not reapply there.
  5. Open elsewhere, with the full document pack and a specific business description.
  6. Work out what changed before the closure — a new revenue stream, a new country in your flows, a volume spike.

For what to prepare before applying elsewhere, see business bank account rejected.

Frequently asked questions

Can they close my account without telling me why?
In many cases yes. Anti-money-laundering rules can prohibit an institution from disclosing that activity was reported, which is why explanations are often absent or generic. The absence of a reason is not evidence that you did something wrong.
How long until I get my money?
It varies, and it can be weeks. Get the timeline and destination in writing immediately. If funds are being held pending review rather than returned, that is a different situation and worth escalating in writing.
Should I open a new account at the same institution?
No. A closure decision generally applies to the customer relationship, and a new application shortly afterwards is usually declined. Move to a different institution.

Sources

Last reviewed . Verify against the primary source before acting.

More in US business banking: eligibility, approval and what to do when you're rejected

All of US business banking: eligibility, approval and what to do when you're rejected