Lloyds Business Bank Account blends the trust of a legacy high street bank with modern digital tools, making it a compelling choice for UK SMEs.
New customers benefit from 12 months of free day-to-day banking, while features like integrated accounting software and robust mobile banking help streamline financial admin from anywhere.
This review breaks down Lloyds’ key features, from cost-saving perks to payment flexibility, helping business owners decide whether it fits their financial goals and day-to-day operations.
Lloyds Bank Business Account
Monthly Fee
£8.50
Bank Transfers
20p
Card Purchases
£0Overdraft
YesFSCS Protection
YesAccessibility
Manage your account via online banking, the mobile app, telephone banking, or in person at a Lloyds or Post Office branch.
Lloyds Bank Treasurer’s Account
Monthly Fee
£0.00Bank Transfers
£0.00Card Purchases
£0.00Overdraft
YesFSCS Protection
YesAccessibility
Manage your account via online banking, the mobile app, telephone banking, or in person at a Lloyds or Post Office branch.
Our Verdict
The Lloyds Business Bank Account is highly recommended for UK small businesses, particularly startups. Its standout feature, a 12-month fee-free period, offers significant financial relief, allowing new companies to mitigate initial costs without the burden of monthly fees. This significantly benefits startups and small enterprises aiming to build a strong financial foundation.
Lloyds effectively merges dependable traditional banking with advanced digital solutions. The account boasts robust digital features, including a comprehensive online platform and a simple and easy to use mobile app, ideal for businesses prioritising digital management. The complimentary Business Finance Assistant enhances value by providing integrated accounting tools that simplify invoicing and VAT submissions.
Nevertheless, potential drawbacks exist. After the fee-free year, the account’s fees and transaction charges may pose challenges for businesses that frequently handle cash or cheque transactions. Moreover, the Business Finance Assistant’s lack of compatibility with popular third-party accounting software like Xero or QuickBooks may be problematic for some.
Lloyds Business Bank Account At A Glance
This table succinctly outlines the Lloyds Business Bank Account’s essential features, providing a quick and effective reference for your decision-making needs.
| Feature | Details |
|---|---|
| Account Types | Business Current Account |
| Free Banking Period | 12 months fee-free for new accounts |
| Monthly Account Fee | £8.50 after the introductory period |
| Electronic Payments In | Free of charge |
| Electronic Payments Out | First 100 free each month, £0.20 per transaction thereafter |
| Cash Deposits | £0.85 per £100 at Immediate Deposit Machine, £1.50 over the counter |
| Cash Withdrawals | Free at ATMs, £1.50 per £100 over the counter |
| Cheque Handling | £0.85 per cheque at Immediate Deposit Machine, £1.00 over the counter |
| Daily Payment Limit | Up to £250,000 |
| Integrated Solutions | Free Business Finance Assistant software |
| Security Features | Strong Customer Authentication, fraud prevention measures |
| Learn More | Visit Lloyds Bank |
Lloyds Business Bank Account Pros & Cons
Evaluating the Lloyds Business Bank Account requires balancing its benefits and limitations to determine its suitability for your business.
- Fee-Free Introductory Period: New account holders enjoy a 12-month fee waiver, which offers substantial savings for startups and emerging small businesses.
- Robust Digital Banking Tools: Lloyds provides a comprehensive digital platform with advanced online and mobile banking capabilities, which is ideal for predominantly online businesses.
- Integrated Accounting Software: The included Business Finance Assistant simplifies financial management tasks like invoicing and VAT submissions, eliminating the need for separate software.
- Comprehensive Payment Solutions: Access to Lloyds’ Cardnet offers a variety of payment tools that support both in-person and online transactions.
- Strong Security Measures: Enhanced security protocols, including Strong Customer Authentication, provide robust protection against fraud.
- Post-Introductory Fees: Following the initial fee-free year, a monthly charge of £8.50 applies, plus additional fees for services such as cash deposits and cheque handling.
- Limited Third-Party Integration: The Business Finance Assistant lacks compatibility with popular accounting software like Xero or QuickBooks.
- Customer Support Limitations: Automated support is available 24/7, but live support hours are limited, potentially inconveniencing some businesses.
- Physical Transaction Costs: Businesses that frequently handle cash or cheques may find the associated fees costly.
What are the Key Features of Lloyds Business Accounts?
Lloyds Bank offers a comprehensive suite of business accounts tailored to meet the diverse needs of UK small businesses.
Free Initial Banking Period: This account provides a 12-month fee-free period, which is particularly beneficial for startups and small enterprises. This significantly reduces initial financial burdens, aiding business growth and financial stability during the early stages.
Cheque Deposits via App: This innovative feature lets businesses deposit cheques directly through the Lloyds mobile app. It enhances operational efficiency by eliminating the need to visit a branch, thus saving time and resources physically.
Overdraft Availability: Lloyds provides flexible overdraft facilities, subject to approval. This feature is crucial for managing cash flow variations and maintaining liquidity during critical financial periods, offering a safety net for businesses.
Integration with Business Finance Assistant: This tool provides complimentary access and is a boon for businesses aiming to streamline their financial management. It automates invoicing and VAT submissions, ensuring compliance with HMRC’s Making Tax Digital requirements and thereby simplifying financial operations.
Online & In-person Services: Lloyds Bank’s blend of digital convenience with traditional banking support empowers businesses to operate more efficiently and benefit from robust financial management tools. These features make Lloyds an appealing choice for small business owners seeking a reliable banking partner supporting local and international business activities.
Additionally, Lloyds tailors accounts to meet specific business requirements:
- Treasurer’s Account: This account has no monthly fees and is specially designed for clubs, charities, and societies. It offers straightforward, effective banking solutions tailored for non-profit entities.
- Foreign Currency Account: Ideal for businesses engaged in international trade, this account facilitates transactions in multiple currencies. It helps manage exchange rate fluctuations and streamlines global operations, providing a strategic advantage in international markets.
Lloyds Business Bank Account Pricing & Fees
Understanding the cost structure of the Lloyds Business Bank Account is crucial for effective financial management. Here is a concise breakdown of the fees associated with this account:
| Fee Type | Fee |
|---|---|
| Monthly Account Fee | Free for new customers for the first 12 months, then £8.50 |
| Electronic Payments In | £0 |
| Electronic Payments Out | First 100 free, then £0.20 each |
| Cash Payments In (per £100) | £0.85 at Immediate Deposit Machine, £1.50 over the counter |
| Cash Payments Out (per £100) | Free at ATM, £1.50 over the counter |
| Cheques Paid In | £0.85 at Immediate Deposit Machine, £1.00 over the counter |
| Cheques Written | £1.00 per cheque |
| Credit Paid In | Free at Immediate Deposit Machine, £0.85 at branch or ATM |
| BACS File Submission | £5.50 |
| BACS Item | £0.15 |
| CHAPS | £30 |
The account features a 12-month fee-free period, appealing to startups and businesses looking to reduce initial expenses. After the introductory period, the monthly fee of £8.50 aligns with competitors like Barclays and HSBC, but Lloyds may offer superior digital tools.
Lloyds’ fee structure promotes electronic transactions, aligning with the banking sector’s shift towards digital solutions. This makes it cost-effective for businesses that primarily handle electronic payments. However, those reliant on cash or cheque transactions should consider the higher costs.
Ease of Use
The Lloyds Business Account excels in a simple and easy to use design, ensuring seamless operation across both digital and physical banking channels. The “Online for Business” platform operates 24/7, enabling you to manage transactions, access statements, and handle payments effortlessly. Its intuitive interface allows dashboard customisation, providing quick, insightful snapshots of your financial status.
The mobile app, compatible with iOS and Android devices, extends essential banking functions to your fingertips. You can securely deposit cheques, transfer funds, and approve purchases on the go, with biometric logins like Face ID and Touch ID enhancing both convenience and security.
Lloyds maintains a network of branches throughout the UK for those who prefer face-to-face interactions. These are ideal for businesses dealing with frequent cash transactions or requiring personalised advice. Business customers also benefit from dedicated telephone support lines available during standard business hours.
This blend of digital ease and physical access ensures efficient financial management with the Lloyds Business Account, catering to all preferred banking methods.
How Secure is the Lloyds Business Account?
The Lloyds Business Account offers robust security measures, regulated by the Financial Conduct Authority (FCA) to ensure compliance with the UK’s strict financial regulations. This regulation gives businesses confidence in the bank’s adherence to stringent oversight.
Lloyds Bank participates in the Financial Services Compensation Scheme (FSCS), which protects eligible deposits up to £85,000 per business, offering a safety net against bank failures. Companies should verify their eligibility for this protection to understand the coverage fully.
Lloyds Bank implements comprehensive fraud monitoring and robust authentication methods to protect customer assets. It employs Strong Customer Authentication (SCA), which includes passwords, memorable information, and biometric verification, such as fingerprint recognition, via its mobile app, enhancing transaction security.
Though unspecified, the bank’s industry recognition for security underscores its commitment to preventing fraud and data breaches and highlights its proactive approach to safeguarding client assets.
How Does Lloyds Bank Support Its Business Customers?
Lloyds Bank provides a comprehensive range of customer service options tailored for business account holders, including in-branch, telephone, and online chat support to suit different business needs.
Business owners can contact dedicated Business Advisers on 0345 072 5555 within the UK or +44(0) 1733 347 338 from abroad for direct telephone support. These advisers are available Monday through Friday from 7 a.m. to 8 p.m. and Saturdays from 9 a.m. to 2 p.m. Outside these hours, an automated system is available 24/7 for basic enquiries, and a textphone service for those with hearing impairments is available at 0345 601 6909.
The “Online for Business” platform and mobile app offer robust digital support. These tools feature a virtual assistant for immediate responses to common queries and the option to message live representatives. The mobile app further enhances user experience by sending notifications for responses, ensuring you stay informed without delay.
Lloyds distinctly separates personal and business support lines, ensuring business clients receive specialised service. Business support hours are strategically set to align with typical business operating times, demonstrating Lloyds’ commitment to understanding and meeting the specific needs of business users.
Lloyds Business Bank Account Customer Reviews
Customer feedback from platforms such as Trustpilot and various app stores reveals a mixed response to the Lloyds Business Bank Account, pinpointing both its strengths and weaknesses.
Common Praise
- Digital Banking Features: Users highly rate the online and mobile banking platforms for their convenience and ease of use, which enable efficient remote management of business finances.
- Initial Fee-Free Period: Startups and small businesses particularly value the first 12 months without fees, which aids in cost reduction during critical early stages.
- Customer Service: The customer service team consistently receives accolades for its responsiveness and ability to resolve issues effectively and answer queries.
Common Complaints
- Transaction Fees Post-Introductory Period: Customers often criticise the transaction fees that kick in after the fee-free period, particularly those for cash and cheque handling, which can accumulate quickly.
- App Performance: Reports of glitches in the mobile app are common, occasionally hindering smooth transaction processes.
- Limited Branch Access: The restricted availability of in-person banking services is a significant drawback for those who prefer face-to-face banking interactions.
What Are the Eligibility Requirements for a Lloyds Business Bank Account?
To open a Lloyds Business Bank Account, applicants must meet specific eligibility requirements that ensure a smooth application process. This section outlines the criteria necessary for UK-based small to medium-sized businesses considering this banking tool.
- Business Type: Eligible entities include sole traders, partnerships, and limited companies.
- Residency: Applicants must be UK residents with a UK trading address.
- Age Requirement: All individuals involved in the business must be at least 18 years old.
- Turnover: The business’s annual turnover should not exceed £25 million.
- Company Registration: Limited companies must have been registered with Companies House for at least four days and have not recently amended their registration details.
- Active Trading Status: The business must actively trade from a UK address.
- Identification and Verification: Applicants must provide valid identification, such as a passport or driving licence, and proof of address, which could be a utility bill or bank statement.
How to Apply for a Lloyds Business Bank Account: Step-by-Step
Applying for a Lloyds Business Bank Account involves a straightforward, sequential process. Here’s how to navigate it efficiently:
- Check Eligibility: Ensure you meet the criteria: be 18 years old, a UK resident, and have a UK mobile number. Your business must also have an annual turnover not exceeding £25 million.
- Gather Required Documents: Prepare essential documents such as a valid passport or driving licence and a recent proof of address. For limited companies, ensure registration with Companies House is complete.
- Visit Lloyds Website: Navigate to the business banking section on the Lloyds Bank website to access the new business account application.
- Complete the Online Application Form: Fill in the form with details including your legal business name, any trading names, start date, primary address, and contact information.
- Submit Identification Documents: Upload the identification documents you prepared earlier when prompted during the application process.
- Review and Submit Application: Verify all entered details for accuracy before submitting your application.
- Await Confirmation: Lloyds will process your application and may contact you for additional information.
- Account Setup and Verification: Upon approval, you will receive confirmation and instructions for setting up online banking and verifying your account details.
Comparing Lloyds Bank to Other Business Bank Account Providers
When selecting a business bank account, comparing features and benefits across various providers is crucial to find the best fit for your business needs. Here’s how Lloyds Bank stacks up against its competitors:
| Feature | Lloyds Bank | Barclays | RBS | HSBC Kinetic |
|---|---|---|---|---|
| Monthly Fee | £8.50 (after 12 months free) | £8.50 (after 12 months free) | £0 | £0 |
| Overdraft Limit | Up to £25,000 | Up to £50,000 | Up to £50,000 | Up to £30,000 |
| App Integrations | Business Finance Assistant | QuickBooks, Xero | FreeAgent | Xero, QuickBooks |
| Account Features | Free accounting software, Cardnet payment solutions | SmartBusiness Dashboard, invoicing tools | FreeAgent access, mobile cheque deposits | Kinetic app for business insights |
| Learn More | Visit Lloyds Bank | Visit Barclays | Visit RBS | Visit HSBC |
Lloyds Bank is particularly appealing to startups with its 12-month fee-free period and robust digital tools like the Business Finance Assistant, positioning it as a cost-effective option for new businesses. Barclays offers broader app integrations with QuickBooks and Xero, catering to companies already utilising these platforms for their financial management.
RBS distinguishes itself with no monthly fees and the longest fee-free period of 24 months. It also includes FreeAgent access, targeting businesses that value prolonged cost savings and comprehensive financial tools. HSBC offers a balanced package with competitive fees and the Kinetic app, which delivers critical business analytics, making it suitable for businesses seeking deeper insights into their financial health.
Lloyds Business Bank Account FAQs
What are the account opening times for a Lloyds Business Account?
Opening a Lloyds Business Account typically takes 5 to 10 working days, depending on the complexity of your business structure and the completeness and accuracy of the documents you submit.
What documentation is needed to open a Lloyds Business Account?
To initiate your account opening, all authorised signatories are required to have essential documentation. This includes a valid UK or foreign passport, a national identity card, or a UK driving licence for identification purposes. A recent utility bill or bank statement is also necessary as proof of address.
What are the daily transfer limits on the Lloyds Business Account?
The Lloyds Business Account facilitates daily electronic transfers up to £250,000, which should meet the transactional needs of most small to medium-sized enterprises.
Are there any considerations for foreign currency transactions?
For businesses engaged in international trade, the Lloyds Business Account offers robust support for foreign currency transactions. It provides competitive exchange rates and the flexibility to schedule payments in advance, enhancing your business’s financial operations across borders.
Is there an introductory offer for new business accounts?
Beneficial for new enterprises, the Lloyds Business Account features a 12-month fee-free period, allowing significant cost savings during the crucial early phases of business development.
Can I integrate Lloyds’ free accounting software with third-party platforms like Xero or QuickBooks?
While the current version of the Business Finance Assistant does not support integration with third-party platforms such as Xero or QuickBooks, plans for future digital enhancements include adding this capability to streamline your financial management processes.
What support is available if I encounter issues with my account?
Lloyds Bank is committed to providing comprehensive support for any account-related issues. Assistance is available through a dedicated phone service from Monday to Saturday, an online platform equipped with virtual assistant capabilities, and a mobile app that features secure messaging, ensuring prompt and efficient help whenever needed.
