If you have a business, then very likely, you will need a company bank account. Now, the internet has made it possible for you to be able to open a bank account online without visiting the banking hall.
A company bank account is used for carrying out business transactions like paying and receiving payments. You can also use it to pay for your taxes. If you are in the UK and you have a registered business, especially if you are registered as a limited liability company, by law, you’re required to have a business bank account. If you are a solopreneur or freelancer, you can choose to use your personal account. However, it is best that you have a business bank account that is separate from your personal account.
In a regular bank, there are banking fees that you will always be charged, especially for payment transactions, FX exchange, cash deposits and withdrawals. However, online banks mostly waive these fees and even offer these services for free. The downside of most online banks is that they don’t offer loans or insurance for businesses.
The type of business bank account you open would depend on what you want to use it for.
Do you need it for making international payments, managing invoices, and managing your teams? Are you into e-commerce business or you are a freelancer that needs a business bank account to receive payments? There are factors to consider that can help you make the perfect decision.
Also Read: Guide on Starting a Childcare Business from Home in the UK
Things to Consider Before Choosing the Right Business Bank Account
As a small business owner, one of your goals is to keep your operating costs low as much as possible. In choosing the right bank account for your business you want to take into consideration factors like;
Business Revenue
The kind of bank account you choose should depend on how much turnover your business generates annually. You can only be eligible to open certain business accounts based on this.
Services You Require
You also want to consider the sort of services you require. For instance, would you need business bank accounts that come with tool kits for carrying out invoicing work, salaries, tax payments, etc? Can your business run properly with the free tools or you will need to pay for specialized tools for your business to run smoothly?
Define Your Fees
Banks would charge different fees depending on the type of account you want to open and the services they render. So, while considering an online business bank, you want to take their fees and rates into consideration. Would you have to pay monthly fees or any other short or long term charges? By listing out the different bank options and their fees or charges, you can define which would be most suitable for your business.
That said, let’s take a deeper look at the best and easiest bank accounts to open online for your small business. Go through this article to see the one that suits your business the most.
1. Revolut Business
Revolut Business offers free standard accounts to their customers. It’s one of the best online business bank accounts in the UK. If you are looking for a bank account for team management, consider Revolut Business.
Revolut Business would give you and your employees GBP and EUR account details. They charge no fees for international payments and foreign exchange. You can also have access to tools with which you can track transaction activities by your team.
Also Read: How to Register Your Business as a Foreigner in the UK
2. Wise Business
Wise Business specializes in money transfer. It was formerly known as Transferwise. They have been ranked as the best money transfer company in the UK. Their services are extremely cheap. The card fees for Wise are low compared to other digital banks. They are also very reliable and transparent in their business dealings.
3. Tide Business
Tide Business is best for one-man businesses, solopreneurs, and consultants. One good thing about Tide is that you can open an account with them in less than 5 minutes.
Tide business accounts help you with administrative functions such as preparing invoices, salary payments, and tax payments.
If you are operating your small business from home, meaning you don’t have a physical address for your business, tide provides you with a virtual office address.
4. Monzo Business
Monzo Business is a 100% regulated bank in the UK and one of the best for freelancing businesses. You can open an account with zero cost and have access to their customer support 24/7. They also give you access to the basic tools you need to carry out your day-to-day transactions.
If you need access to more of their tools, especially their administrative tools, you will need to upgrade from the free plan.
5. Starling Bank
Startling Bank is an award-winning business bank. They offer good quality services, and good business toolkits with no monthly fees attached. Although, you will have to pay to access their special tool kits. These special tool kits will help you with creating invoices and even tax payments.
Though they operate free accounts, you must pay for foreign accounts like the Euro and Dollar accounts.
Starling bank accounts are very okay for sole entrepreneurs, businesses registered as limited liability companies, and even limited liability partnerships.
Also Read: 10 Benefits of Starting a Business in the UK
How to Open an Online Business Bank Account in the UK
The process can be very seamless depending on the bank. You will need to provide the bank with your company’s registration information including the company’s shareholders if there are any.
You can carry out this process online, with their online app and it takes only a few minutes to complete.
Is UK Online Business Banking Safe?
The answer is yes. Online business banks are safe and secure financial institutions. They are regulated by a body called the Financial Conduct Authority. Online business banks also make sure your money is secure through the UK’s Financial Services Compensation Scheme (FSCS). This is to show you that you have nothing to worry about when it comes to protecting your money and privacy.
Conclusion
I have given you some of the best and easiest online business banks in the UK, what to consider before opening an account with them, how to open an account with them as well as how these banks are regulated.
I hope this article helps you to make the right choice of what business bank account to open in the UK.
