Lloyds business accounts

A business account with Lloyds can work for you if you want the support of a big bank, and it's free for the first few months.

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Opening your business account with Lloyds means benefitting from a big network of branches, solid customer support and a variety of related financial products available for your business.

For a big traditional bank, the fees aren’t exorbitant either. Let’s take a look.

What types of business accounts does Lloyds offer?

Depending on what your business does and how long it’s been operating, you can choose among three types of business accounts:

  • Current account for new businesses. For businesses that are opening their first current account ever. It comes with 18 months of free banking.
  • Current account for established businesses. If your business already has an account somewhere else but you want to switch, you’ll qualify for this deal, which offers six months of free business banking.
  • Current accounts for schools, clubs, charities and societies. These can all benefit from a more favourable deal than regular businesses.

Lloyds business accounts charges

Once your introductory deal is over, Lloyds will charge you for its business banking services. Expect the following fees:

  • Monthly fee. This is fixed and isn’t influenced by how much you use the account.
  • Cash fees. Depositing or withdrawing cash from the account at a branch will come for a fee.
  • Foreign currency transaction fees. If you use your business debit card abroad, you’ll be charged a fee (equivalent to a percentage of the transaction). The fee is higher for ATM withdrawals. Be aware that these fees will apply even during your introductory period of free banking.
  • Cheque fee. Both for emitting or depositing them.

You won’t be charged for bank transfers, debit card payments or ATM withdrawals in the UK instead.

You can see the full list of charges on Lloyds Bank’s website.

The benefits of a Lloyds business account

  • Multiple ways to bank. Unlike other traditional banks, Lloyds offers a decent mobile experience, but its strongest point is still the opportunity to bank in many different ways – on the app, online, on the phone or in person.
  • A wide range of related financial products available. A business account is the first step, but your business may also need a savings account, a credit card, insurance solutions… Lloyds offers all that, so you can have all your business financial products in the same place.
  • Free banking for the first few months. This is a good deal, especially if your business is new. It gives you the opportunity to try Lloyds out and, if you aren’t happy with the service, you can switch before the end of the introductory period.
  • Solutions to accept card payments available. Cardnet is a Lloyds service that allows you to accept card payments in person, online or on the phone. You can choose between a range of machines and solutions.
  • Customer service. Lloyds offers dedicated support to its business customers through relationship managers and a business management team. Be aware that lines aren’t open 24/7 (only from Monday to Saturday, at daytime).

How to apply for a Lloyds business account

You can apply online or in person if your business’s turnover is less than £3 million. If it’s more, you can give Lloyds a call instead.

Here’s a basic list of the information and documents you’ll need:

  • Your personal details, proof of identity and proof of address
  • Three years of address history
  • Details of any other director of your business
  • Your business’s details, including a proof of address
  • Business registration number
  • Date and certificate of incorporation
  • Business turnover and tax information
  • Previous banking details if you have them and are looking to switch

How to compare business accounts

  • Cost. Try and calculate how much a determinate account is going to cost you per year and compare options. The result will largely depend on your banking style and on how many transactions you habitually make.
  • Type of business. It’s a good idea to look for something that’s as tailored to your business as possible. A small independent bakery in Scotland will not have the same banking needs of a law firm in London, for example.
  • Cash. Depositing or withdrawing cash is usually more expensive than doing everything online or by card, so make sure you’re aware of which fees you may be charged.
  • Ways to bank. Some business owners prefer to discuss banking in person, while others would rather have a great mobile app that makes banking slicker on the go. Not all banks will provide both.
  • Travelling/trading abroad. What happens if you need to make an international money transfer from your business account? How much is the foreign currency transaction fee for using your business debit card abroad?
  • Accepting payments. You can always get an acquiring solution somewhere else, but if your account provider offers it, it could be quicker and easier to negotiate and set up.
  • Accounting software integration. Can you import your bank statements into your accounting software?
  • Related products. Do you also need a savings account, insurance or help with financing your business?

Pros and cons of a Lloyds business account

Pros

  • Free trial available.
  • Ability to bank online, on mobile, by telephone or in branch.
  • Dedicated account support from a business management team.
  • System to take card payments from your customers available.
  • Option to apply for overdrafts, business loans and credit cards.

Cons

  • Once the free trial is over there’s a monthly charge.
  • Other fees apply, such as for depositing cash and cheques or for making international transactions.

Our verdict

If you’re after a well-known high street brand, then it’s worth considering a business bank account with Lloyds. A major advantage here is the ability to bank online, on mobile, by telephone or in branch, which will appeal to those who might not be comfortable with a digital-only bank account from one of the newer players.

As one of the biggest UK banks, you can also take advantage of Lloyds’ ability to offer overdrafts, business loans and business credit cards.

There’s also a free trial period with Lloyds business accounts, but you’ll have to stump up the monthly fee, as well as the other banking transaction fees, when it ends.

Compare Lloyds against its competitors

Data indicated here is updated regularly
Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
Tide
Free
£0.20
Free if both accounts are with Tide
Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow and Sage
Free
App
Free spending abroad and at home in any currency, instant payment alerts, automatic categorisation
ANNA
Free
Free up to a max. balance of £5,000 (or up to £500 paid in per month)
Free
2 free transfers per month and unlimited free transfers to Anna accounts
Coming soon
Free
App
Earn 1% cashback for paying with your ANNA card in selected categories. Enjoy premium benefits free for the first 6 months.
Cashplus business
£69
First year's annual fee refunded.
£0.99
Free transfers in first 3 months
FreeAgent, Xero
2.99%

On invitation
App, Online
First year's annual fee refunded.
Amaiz
£9.99 per month
Free in first month
Free Starter plan available
£0.20
FreeAgent, Xero, Sage, Reckon One, Kashflow, QuickBooks
1%
0.5% in Europe, 1% elsewhere
App, Online
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