Customers have been flocking to the mobile-only bank Starling, impressed by its slick app and fee-free spending abroad.
Now the challenger bank is also offering a business account option. Read on to find out more about Starling Business and whether it could help your company.
Starling Bank: Best Business Banking Provider 2019
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Starling says its aim is to make banking straightforward, simple and quick.
Starling’s business account is no different. Launched in 2018, it takes a matter of minutes to sign up through the app, while its mobile-only approach and easy to use app might make managing your receipts and invoices easier.
Its business option is currently available if you’re an individual owner of a limited company, and the only one with significant control over the business. Or, if you’re a sole trader and you already own a personal account.
Starling CEO Anne Boden explains why Starling Bank is different
How does Starling Business work?
Like many other challenger banks Starling offers a banking experience that is pretty different to traditional banks. Here we walk you through getting started and what features you would get with a business account:
Quick application. Download the app on your smartphone. After entering some personal details, you take a photo of an accepted I.D. and film a short video of yourself. With a business account Starling run a few quick credit checks too, but the whole process shouldn’t take more than 10 minutes.
Your card. You’ll be issued with a contactless Mastercard debit card, which should take between 3-5 days to arrive. However, you can start using Starling straight away through Google or Apply pay.
No fees. Starling won’t charge fees on electronic payments, domestic transfers, monthly account fees or ATM withdrawals.
24/7 support. You can speak with a human adviser (not a robot) at all hours of the day. Contact them through the app, over the phone or by email.
Real-time info. There’s no waiting around for payments to show up. You even get notifications every time money enters or leaves your account.
Spending insights. See your spending broken down into categories like utilities, travel or entertainment.
CSV exports. Share your transactions with your accountant or accounting software like Xero.
Is a Starling Business account for your company?
As briefly mentioned already, you can only apply for a Starling business account if you are an individual owner of a limited company, and you have significant control over it. Or, as long as you’re a sole trader and you already own a personal account.
Starling is probably better for smaller or medium businesses too. It doesn’t charge fees if you have fewer than 10 employees and less than £1.7 million in annual turnover.
For now, larger businesses can get a business account for free. However, this is for a limited time.
Is Starling Business safe?
As Starling is a licensed bank you are partially covered. In the event of the bank going bust, it is covered by the Financial Services Compensation Scheme (FSCS). So you would be protected for up to £85,000.
However, the FSCS doesn’t apply to all business types so you should check with its website whether your company is eligible. It’s worth bearing in mind that the FSCS small business threshold is less than £1 million turnover in a year.
You might also be wondering about how safe the actual app is? Starling have a number of security features to ensure your money is safe from fraudsters:
Your finances are secured behind a passcode and password and completing your registration requires video and photo-ID.
If you ever lose your card, you can immediately deactivate it with a push of a button and customer service is there whenever it’s needed.
A live record of your transactions and home screen notifications means you are alerted to any strange payments immediately.
Pros and cons of Starling Business Current Account
Pros
An account up and running in about 10 minutes.
No joining or monthly fees.
Contactless card delivered within a week.
Spending insights will help you manage your company’s finances. Every penny can be scrutinised.
No spending fees abroad and Mastercard exchange rate.
Marketplace gives you more financial control, letting you connect to platforms like Xero and FreeAgent.
Its “Goals” savings feature available to businesses too.
24/7 customer service.
Fully licensed by the FCA and PRA.
Cons
Currently, only an individual who owns a limited company can open an account.
That individual must be the only one with significant control over the business.
The lack of branches might cause some communication problems.
You still need to use a traditional bank (NatWest) to pay cash in.
Frequently asked questions
Starling Bank has four revenue streams that function much like those of a traditional bank:
Net interest income: Starling Bank uses customer deposits to lend to other customers as overdrafts and loans.
Treasury income: Surplus deposits are held by the Bank of England, Starling gets small returns via interest.
Interchange income: The fee that Starling takes from every card transaction made; the interchange fee.
Fees and commissions: Traditional banks upsell and advertise additional services that they can provide, generating more income. As Starling Bank only offers their current account, they make money through partnerships with other fintechs, getting a commission on every referral.
Starling bank account is a fully functioning current account which comes with a Mastercard debit card so linking a main account won’t be necessary.
You can add money to your Starling personal account by doing any of the following:
Bank transfer directly from another bank account to your Starling personal account.
Cash deposit through any Natwest branch.
Choose to transfer your salary, set up direct debits and any other regular payments by making Starling your main bank account.
Simple. Pay in cash manually or transfer funds from another account. Alternatively, you can use the “Switch” option to make your Starling account your main account.
While Starling do not impose any withdrawal charges on customers, ATM providers in your country of destination may charge their own fee. The cost of withdrawing from ATMs differs in different countries and locations.
Starling bank accounts are only available to those whose current address is in the UK. You can be from any nationality as long as you live in the UK.
Yes, you need to download the app on either an Android or iOS device.
Starling bank account is a fully functioning current account which comes with a Mastercard debit card so linking a main account won’t be necessary.
You can add money to your Starling personal account by doing any of the following:
– Bank transfer directly from another bank account to your Starling personal account. – Cash deposit through any Natwest branch. – Choose to transfer your salary, set up direct debits and any other regular payments by making Starling your main bank account.
You can also visit Starling Bank’s website for more information about its different bank accounts’ features and services.
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I’m afraid that is not possible. It is against company policy that third parties have access to your account. You may also contact Starling Bank to verify this.
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n26 business
Anna Business
Revolut Business
Hi, can I give read-only access to my account to my Accountant
Hi Dec,
Thanks for contacting Finder.
I’m afraid that is not possible. It is against company policy that third parties have access to your account. You may also contact Starling Bank to verify this.
I hope this helps.
Kind Regards,
Faye
If for example I drop my phone down the loo, I able to access a starling account via laptop or pc?
Hi Al,
Thanks for your inquiry.
Unfortunately, you cannot access your account via laptop or PC. Please note that Starling account is only available through Smartphones or tablets.
I hope this helps.
Kind regards,
Bella