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.
Compare Lloyds’s business accounts
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 small businesses and start-ups. For businesses whose estimated annual turnover is under £3 million. It comes with 12 months of free banking.
- Current account for larger businesses. For business with an estimated annual turnover of over £3 million. Account fees will vary depending on whether the business conducts most of its banking online or in-branch.
- Current accounts for schools and community groups. These can all benefit from a more favourable deal than regular businesses.
- Current accounts for professional practices (e.g. solicitors and accountants). These accounts are for businesses or partnerships that need to hold client money separately from their own funds.
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
Pros and cons of a Lloyds business account
- Free trial available for most small business customers.
- 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.
- 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.
Lloyds business banking: The bottom line
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 and charge 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.
Get started by visiting Lloyds’s website and sign up for an account. If you have read this review and decided that Lloyd’s account is not for you, you can also compare other business bank accounts on the market.
Frequently asked questions
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