Small businesses often find it difficult to navigate the UK banking landscape. There are so many business options and rapidly changing digital options it becomes challenging to decide what’s best for your bank account.
Dealing with the financial responsibilities of small business has not made it bulkier. The top Banks for Small Businesses in the UK can cater to anything from payroll administration to paying for office supplies.
Opening a small business account allows tracking of paid bills, expenses, and cash receipts. You also get an option to open a business line of credit, which is ideal if you wish to pursue a small business loan or a business credit card.
In this guide, we’ll take you through the best small business bank accounts in the UK.
Table of Contents
7 Best Banks for Small Businesses
Take a look at the following options and find the best bank for your small business.
Tide
Overview: Tide is a UK-based electronic money institution that provides small businesses, independent contractors, sole proprietors, and registered limited companies in the UK with app-based business banking services.
One of the four plans for Tide accounts is free and perfect for new businesses. Nevertheless, the following transaction costs are associated with it:
- £0.20 for each in-and-out transfer
- £1 for each ATM withdrawal
- £5 each month for expenditure cards.
Other options are available for £9.99 to £49.99 per month if you choose to upgrade. As you progress to higher tiers, you’ll receive more benefits and pay less for individual transactions.
Features:
- Expense cards for team members
- Tide business cards
- Make, distribute, and oversee bills
- Tide savings account linked Completely to app-based banking
- A Tide card reader (optional).
- The software offers round-the-clock support
- International payments in EUR via SEPA.
- Connects to accounting programs like FreeAgent, Xero, Sage, and QuickBooks.
- Tide business loans are available (subject to approval).
ANNA Money
Overview: Small firms can use the app-based business account called ANNA (Absolutely No Nonsense Admin).
It offers a variety of programs, one of which is Pay as You Go, which is free and can be suitable for new businesses.
The higher the monthly rates, the more services and reduced transaction costs are offered by other plans, which range in price from £14.90 to £49.90.
The free ANNA PAYG account has standard banking fees, such as £0.20 for bank transfers, £1 for ATM withdrawals, and £5 for foreign payments (plus fees for currency conversion).
Features:
- Business debit card
- Connectivity with accounting programs like QuickBooks and Xero
- Simple receipt recording
- Instant billing
- Cashback on purchases
- Funds for ring-fencing and pita for savings
- PayPoints all throughout the UK accept cash deposits.
Wise Business
Overview: Although Wise is not a bank, it is approved as an e-money institution by the FCA in the UK and provides multi-currency cards and accounts for UK companies through Wise Business.
Wise Business simply charges a one-time £45 startup fee; there are no ongoing expenses. You can withdraw up to £200 every month (up to two withdrawals) for free, and sending money costs start at 0.33%.
A Wise Business debit card is available for a one-time cost of only £3.
Features:
- Maintain and trade more than 40 currencies with a single, robust online account.
- Use the mid-market exchange rate and minimal fees to send money to more than 150 countries.
- To receive payment in eight or more currencies like a native, get your local account details.
- No minimum balance requirements or monthly fees.
- You and your team can use these debit and expense cards in more than 150 countries.
- Team members’ multi-user access with mechanisms for managing and controlling permissions
- The Wise batch payments function allows you to pay up to 1,000 people at once. Use the Wise API to automate tasks streamline workflow, and integrate with cloud accounting programs like Xero and QuickBooks.
- Make your money work harder when you’re not using it by utilizing the Wise Interest feature.
Barclays
Barclays, one of the largest banks in the UK, offers a variety of business accounts, including one specifically designed for small businesses. If you require one, it also has a foreign exchange account.
UK companies that have been in operation for less than a year are eligible for the Barclays business account for startups. For the first year, there is no monthly charge; after that, it costs £8.50.
Except for cash deposits at post offices, which cost £0.60 per £100, the majority of routine transactions are free.
Features:
- FreshBooks accounting and invoicing software is free.
- Phone, branch, mobile, and internet banking
- 24/7 in-app business help
- Barclays Eagle Labs community hub accessibility
- International managers for conducting business overseas in addition to Net Zero specialists
- Payment solutions for Barclaycard
- 24-hour protection against fraud
Zempler Bank
Zempler Bank, formerly known as Cashplus, is a fully regulated UK bank that provides three primary business bank accounts. These are Business Pro (£19 per month), Business Extra (£9 per month), and Business Go (£0 per month).
The majority of company forms in the UK, including limited companies and sole traders, are eligible for all accounts. Although it has certain extra fees, the free Business Go plan is perfect for new businesses.
Features:
- Business cards
- Quicker transactions with the Zempler mobile banking app and Internet banking.
- Centralized account management
- Enhance your credit score with the Business Credit Builder tool
- Cashback on card purchases.
- Xero, Sage, and QuickBooks accounting software can be integrated with your account via an API.
- Application-based overdraft.
- FSCS protector
Starling Bank
A digital business account with customizable add-ons is available from Starling Bank, a UK bank with a license. Moreover, it has a sole trader account.
Because it has no monthly fees and most daily transactions are free (except international transactions), it’s a fantastic option for small businesses and startups.
Subscriptions for add-ons like Bulk Payments and the Business Toolkit cost £7 per month.
Features:
- Mobile and internet banking
- Conserving Space
- Spending insights
- Debit card controls
- Deposits of checks in the Starling app
- Deposits of cash at Post Office locations
- Real-time alerts connect to accounting programs like FreeAgent, QuickBooks, and Xero.
Airwallex
A fintech startup with headquarters in Singapore, Airwallex provides a digital multi-currency business account. Although there are fees of £10 to £20 for international transfers, it has no monthly fees, and many transactions are free.
Features:
- Convert and store several currencies in a single digital account.
- Connectivity with accounting programs like QuickBooks and Xero
- Using the Airwallex API to combine tools and automate procedures
- Employee and business cards
- Tools for managing expenses, such as receipt capturing.
- Bill Pay
Conclusion
The ideal bank in the UK for your company will ultimately rely on your unique requirements. When choosing banks for small businesses, take into account elements like fees, customer service, and the digital experience.
The financial environment for small businesses is evolving due to the emergence of digital banks, so it’s important to consider all of your possibilities.
It takes some research to find the best business bank accounts in the UK, but the effort is worthwhile to make sure your company is properly supported.
