Monzo was one of the first UK challenger banks, receiving its banking licence in 2017.
It’s now one of the top business accounts in the UK with a powerful mobile app, invoicing, multi-user access and 24/7 customer support.
I’ll dive into the Monzo business account in detail, exploring the features offered, the pros and cons, how to open the account, and what the reviews tell us.
My detailed review aims to give you all the information you need to make an informed choice, and our content is updated regularly.
Monzo Account Review: My Verdict
Monzo’s recently came second in Which magazine’s list of Best and Worst banks, meaning its 5 million users are generally very happy with the challenger bank.
Its business account offering is certainly a strong performer with good customer support and, even at the premium ‘Pro’ account only costs £5 per month. This makes it cheaper than most premium account offerings from competitors like Tide and Starling.
It’s fully regulated, has an intuitive user experience, but is let down by having no overdraft facilities or business credit card. It’s also limited for cash-heavy businesses with a £300 limit on each deposit and a £1000 cap every six months.
Overall, evidence suggests it’s a great account if your business is primarily in the UK, and you don’t need a branch network. The paid for ‘Pro’ account is definitely the one to choose over the free version.
Which Monzo Business Account?
Monzo offers two business accounts: a free account they call ‘Lite’ and the ‘Pro’ account at only £5 per month.
The free account is ideal for a startup or small one-person business that doesn’t require invoicing software integration, while most features are reserved for Monzo Business Pro.
We’ve created a handy comparison table below to help you decide.
|Feature||Monzo Business Lite||Monzo Business Pro|
|Price per month||Free||£5|
|Integrated accounting (Xero, Free Agent, Quickbooks)||✘||✔|
|Multi-user access (up to 2 people)||✘||✔|
|Six months Xero free (optional)||✘||✔|
|Mobile and web access||✔||✔|
|Card payments with Stripe||✔||✔|
|Easy bank transfers (free till 2024)||✔||✔|
|Business debit card (MasterCard)||✔||✔|
|24/7 customer support||✔||✔|
|Free, instant UK bank transfers||✔||✔|
|Pots to separate money||✔||✔|
|Budget and categorize spending||✔||✔|
|Outbound international payments||✔||✔|
|Mobile signup and switching||✔||✔|
|Apple Pay and Google Pay||✔||✔|
|Fee-free spending abroad||✔||✔|
|Pay in cash and cheques||✔||✔|
|£85,000 FSCS protection||✔||✔|
Compare Monzo with Tide
We have done a straight comparison between Monzo and Tide. Take a look at the comparison to see which might be better suited for your business.
You can access the comparison between Monzo and Tide by clicking here.
Pros and Cons of Monzo Business Account
- Speedy Signup
- FSCS Protected
- Free account migration with ‘Switching‘
- Fee-Free Spending Abroad
- 24/7 customer support
- Useful budgeting features
- You cannot currently receive international payments
- No accounting integrations with the free account
- It costs £1 to deposit Cash via Paypoint
- £300 cash deposit limit in one go, or £1000 every six months
- No bank branches
Independent Survey on Monzo Business Current Accounts
In compliance with regulatory obligations, a survey independently queried about 1,200 customers from each of the top 15 business current account providers to determine if they would endorse their provider to other small and medium-sized businesses. The survey outcomes reflect the opinions of the participating customers and the details of those results can be seen below:
Monzo ranked first in the category of ‘Overall Service Quality’ with 84%, indicating a high level of satisfaction among small and medium-sized enterprises (SMEs) with Monzo’s overall service quality
In the ‘Online and Mobile Banking Services’ category, Monzo also ranked first with a score of 87%, showing that their online and mobile banking services are highly regarded by their SME customers.
Monzo did not receive a score in the ‘SME Overdraft and Loan Services‘ category. The reason is that Monzo did not provide credit services to SME customers throughout the period of the survey, although they now do.
For the category of ‘Relationship/Account Management services’, Monzo ranked second with a score of 73%. This reflects a strong performance, though not the leading position, in how well they manage customer relationships and account services for SMEs.
Finally, Monzo did not receive a score for ‘Services in Branches and Business Centres’. This is due to the fact that Monzo operates without physical branches, making it ineligible for evaluation in this category.
Some Background on Monzo Bank
Monzo is a digital bank founded in 2015 by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon, and Jonas Folkesson. Originally called ‘Mondo’ they were forced to change their name due to a copyright challenge in 2016.
Monzo’s headquarters is in London, UK, with additional offices in Cardiff, Glasgow, and New York City.
Monzo has grown rapidly since its launch, gaining over 5 million customers in the UK and Europe and raising over £325 million in funding from investors. Monzo’s mission is to make money work for everyone by building a fair, transparent bank that works for its customers.
What are Monzo’s Business Account Features?
Monzo offers several handy features for its business accounts; some of the most notable include:
- Simple pricing: Monzo offers a straightforward pricing structure with no hidden fees or commitment.
- Tax Pots: Monzo allows you to create separate pots of money to easily track expenses, making it easier to budget and manage your finances.
- Integrated accounting: Monzo’s business accounts provide the option to connect to accounting software, like Xero, to export transactions and simplify accounting automatically.
- Multi-user access: Monzo allows multiple users to access a single business account, making it easier for teams to manage finances.
- Virtual Cards: Monzo provides virtual cards that can be used for online purchases, reducing the risk of fraud and providing greater flexibility.
- Mobile and web access: Monzo allows you to access your business account from anywhere via the mobile app or website.
- Easy bank transfers: Monzo allows for easy transfers within the UK and internationally.
- Advanced security: Monzo offers advanced security features such as two-factor authentication and biometric login to keep your business account secure.
- 24/7 customer support: Monzo’s customer support team is available 24/7 to help with any questions or issues.
- Mobile signup and switching: Monzo allows you to sign up and switch to a business account quickly and easily via the mobile app.
How to Open a Business Account with Monzo?
The simple steps for opening a business account with Monzo are as follows:
- Download the Monzo app: You can download the Monzo app from the App Store or Google Play.
- Start the application process: Start by selecting “Business account” from the account options in the app.
- Provide your business information: Input your business name, registration number, and other relevant information.
- Verify your identity: You’ll need a government-issued ID, such as a passport or driver’s license.
- Add your business details: Add your business details, including the business address, contact information, and type of business.
- Wait for approval: Monzo will review your application and let you know if it has been approved or if any additional information is required.
- Set up your account: Once approved, you can set up your account by linking your business debit card, creating pots, and setting up automatic payments.
- Start using your account: Once your account is set up, you can use your Monzo business account for all your business transactions.
Who Can Open a Monzo Business Account?
To open a Monzo business account, you must be:
- A sole trader or the director of a registered limited company by shares (Ltd) based in the UK.
- If you are a limited company, your company must be active on Companies House and have an active company director (not disqualified) on Companies House.
- The company must have at least one person of significant control (this can be you) listed on Companies House and have less than 25% of persons of significant control or directors being corporate entities.
- The company must make money primarily from selling goods and/or providing services, not mostly from interest or investment income and be a tax resident in the UK and no other countries.
Monzo won’t offer you an account if your business is based, registered, or a tax resident outside of the UK. Or if you are included in the following categories:
- Partnerships, including Limited Liability Partnerships (LLPs)
- Limited companies by guarantee
- Community interest company (CIC)
- Public Limited companies (PLC)
- Clubs or other non-registered organizations
- Trusts or funds
- Other registered business types, like an unlimited company (Unltd), industrial and provident society (IPS) or Royal Charter (RC).
Ineligible businesses for Monzo Business and Savings Accounts include:
- Partnerships and Limited Liability Partnerships (LLPs)
- Limited companies by guarantee
- Community interest companies (CICs), clubs or other non-registered organisations
- Public Limited companies (PLCs)
- Trusts or funds
- Other registered business types such as unlimited companies (Unltds), industrial and provident societies (IPSs), or Royal Charters (RCs)
Specific industries are considered higher risk, and businesses in these sectors cannot apply for a Monzo Business Account. This includes:
- Currency exchanges, including virtual currencies.
- Financial and insurance activities.
- Regulated or unregulated financial investment, loan, foreign exchange (FX), or banking businesses, including consumer credit and money lending.
- Construction and civil engineering.
- Mining and quarrying.
- Precious metals and stones.
- Defence, weapons manufacturing and selling.
- Public administration and defence, and compulsory social security.
- Dating or escort services.
- Tattoo and nail parlours.
- Technology equipment, such as telecommunications.
- Probate and estate management.
- Gambling and betting.
- Unlicensed scrap metal.
- Unregistered waste management.
- Shell companies.
- Illegal or unlicensed drugs.
- Used automotive vehicles.
- Bidding fee auctions.
- Selling or making cannabidiol products (CBD), like cannabidiol oil.
- Certain types of manufacturing.
- Activities of extraterritorial organisations and bodies.
Monzo Business Fees & Charges
|Fees & Charges||Amount|
|Sending money within the UK||£0|
|Sending money outside the UK||Not applicable|
|Receiving money from outside the UK||Not applicable|
|Cash withdrawals in pounds in the UK||£0|
|Cash withdrawals in the European Economic Area (EEA)||£0|
|Cash withdrawals in non-EEA countries||First £200 in a 30-day period free, 3% after that|
|Cash deposit||£1 per deposit|
|Debit card payment in pounds||£0|
|Debit card payment in foreign currency||£0|
|Arranged overdraft||Monzo doesn’t currently offer arranged overdrafts|
|Unarranged overdraft||Monzo won’t charge you for being in an unarranged overdraft|
What are Monzo’s Reviews Like?
Monzo boasts excellent reviews overall, with a 4.4-star rating. As of January 2023, they have over 25,000 Trustpilot reviews, of which 80% are 5 stars. Reviewers speak of user experience, customer service and simplicity.
Over the roughly 11% of reviewers who labelled their experience ‘bad’, blocked accounts appear to be an issue for some, with others citing a lack of attention to detail in customer service.
What documents do I need to provide to open a Monzo Business account?
To open a Monzo Business account, you must provide proof of identity and business address. This can include a copy of your business registration documents, a utility bill for the business, or a bank statement. You will also need to provide your VAT number, if applicable, and a unique tax reference number (UTR).
Does the FCA regulate Monzo Business?
Yes, Monzo Business is regulated by the Financial Conduct Authority (FCA), which means that it is subject to strict regulations and oversight to ensure that it operates safely and responsibly. This provides additional protection for customers and their funds.
Can you pay cash into Monzo’s business account?
Yes, you can deposit cash at any of the 28,000 Paypoint locations in the UK.
Does Monzo do a credit check for their business account?
Monzo does not do a full credit check when opening a business account. Instead, Monzo does a soft credit check, which means a top-level view of your financial history that won’t leave a footprint on your credit file.