diff --git a/src/components/AddPaymentMethodMenu.js b/src/components/AddPaymentMethodMenu.js
index ce26985932d6..4d01fa108e2a 100644
--- a/src/components/AddPaymentMethodMenu.js
+++ b/src/components/AddPaymentMethodMenu.js
@@ -64,6 +64,12 @@ const defaultProps = {
 function AddPaymentMethodMenu({isVisible, onClose, anchorPosition, anchorAlignment, anchorRef, iouReport, onItemSelected, session}) {
     const {translate} = useLocalize();
 
+    // Users can choose to pay with business bank account in case of Expense reports or in case of P2P IOU report
+    // which then starts a bottom up flow and creates a Collect workspace where the payer is an admin and payee is an employee.
+    const canUseBusinessBankAccount =
+        ReportUtils.isExpenseReport(iouReport) ||
+        (ReportUtils.isIOUReport(iouReport) && !ReportActionsUtils.hasRequestFromCurrentAccount(lodashGet(iouReport, 'reportID', 0), lodashGet(session, 'accountID', 0)));
+
     return (
         <PopoverMenu
             isVisible={isVisible}
@@ -84,7 +90,7 @@ function AddPaymentMethodMenu({isVisible, onClose, anchorPosition, anchorAlignme
                           },
                       ]
                     : []),
-                ...(!ReportActionsUtils.hasRequestFromCurrentAccount(lodashGet(iouReport, 'reportID', 0), lodashGet(session, 'accountID', 0))
+                ...(canUseBusinessBankAccount
                     ? [
                           {
                               text: translate('common.businessBankAccount'),