Business bank account
 

Business Bank Accounts

 

 

When choosing a business bank account provider it is important to consider what is on offer and even more importantly what it will cost? That is why SFS have done the research for you. We currently recommend Lloyds or Barclays for those looking for a high street bank account. Alternatively, we work with an award-winning provider of online Business Current Accounts that has been specifically tailored to the needs of Limited Company Contractors, SME’s & Freelances.

Lloyds currently offer the longest period of free banking at 18 months for new business accounts through our referral service. If you prefer Barclays they are currently able to offer you 12 months free banking. Our referral service means the bank will contact you to arrange the bank account. They understand the importance of moving quickly and will expedite the account opening where possible. As a further option for those in real hurry to open a business account we do offer an instant account opening option with our Online Business Current Account option which is provided by an established FCA regulated provider. The account number and sort code will be available at the end of the application for successfully verified customers just so long as your address passes the verification process (this is not a credit check). This option incurs an annual fee of £69.

All limited companies require a business bank account to be opened in the name of the business. This allows the business to make and receive payments in the name of the company and also separates the company's finances from the owners or directors of the company. We have setup a referral system to speed up the account opening process and the following provides a run down on the key differences between the available options.

 

 

A brief overview of the benefits of the three business bank accounts we can offer

(1) Barclays Business Account

Fast opening through our referral service

Free banking for 12 months (charges apply after free banking period)

Credit checks will be carried out on all directors and shareholders

Manage the account online, by phone or at a branch

(2) Lloyds Business Account

Fast opening through our referral service

Free banking for 18 months (charges apply after free banking period)

Credit checks will be carried out on all directors and shareholders

Manage the account online, by phone or at a branch

(3) Online Business Current Account

Same day account opening possible

No credit checks, the applying director just needs to be a UK resident

Low annual charge of £69 per year for this account

Manage the account on any device anywhere 24/7

 

Detailed Comparison of the bank accounts we offer

(1) Barclays Business Account
12 months free banking*

  • Barclays Business Account for new start-ups and existing small businesses. The first year is free then monthly and per transaction charges will apply. Barclays bank will run a credit check on directors and shareholders. This account is only available to UK resident clients.

How to apply for the account

  • Request a referral from us and we will ask Barclays to contact you
  • You will then be contacted by phone and or email to arrange a meeting at your local branch to open the account

How you operate the account

  • Telephone banking
  • Online Banking
  • Branch based banking
  • Mobile phone and tablet app

Withdrawing money

  • Card at cash machine (ATM)
  • Card at shops/retailers/online stores e.t.c.
  • Bank transfers out
  • Direct Debits and Standing Orders
  • Cheque payments
  • Pay with your mobile

Paying money in

  • Bank transfers in
  • Cash at branch
  • Cheques at branch

Charges to operate the account

  • Annual fee in first year - FREE
  • Second year annual fee starts at £72 (£6.00 per month)
  • Receiving bank transfers from a UK account - (year 2 onwards) - £0.35p each
  • Sending bank transfers within the UK - FREE
  • Cash payments into the account - from £0.90p per £100
  • Cash withdrawals at ATM within the UK - FREE (free ATM's only)
  • Receiving bank transfers from overseas/outside of the UK - ranges from free to £6
  • Sending bank transfers overseas/outside the UK - £25 each
  • Receiving in a cheque - from £0.65p each
  • Sending out a cheque - from £1.50p each

Credibility and Protection

  • FSCS protected UK based account
  • UK Customer Service
  • One of the largest banks operating in the UK
  • Over 1,500 branches in the UK

Please note the above fees and services are subject to change. Please check the exact fees and services being offered to you if you decide to apply for this account through our referral service. The supplier reserves the right to change or withdraw a product or offer alternative products at any time.

(2) Lloyds Business Account
18 months free banking*

  • A Business Account for new start-ups and existing small businesses. The first 18 months are free then monthly and per transaction charges will apply. Lloyds bank will run a credit check on directors and shareholders. This account is only available to UK resident clients.

How to apply for the account

  • Request a referral from us and we will ask Lloyds to contact you
  • You will then be contacted by phone and or email to arrange a meeting at your local branch to open the account

How you operate the account

  • Telephone banking
  • Online Banking
  • Branch based banking
  • Mobile phone and tablet app

Withdrawing money

  • Card at cash machine (ATM)
  • Card at shops/retailers/online stores e.t.c.
  • Bank transfers out
  • Direct Debits and Standing Orders
  • Cheque payments
  • Pay with your mobile

Paying money in

  • Bank transfers in
  • Cash at branch
  • Cheques at branch or via app

Charges to operate the account

  • Annual fee in first 18 months - FREE
  • Annual fee after free period - £78 (£6.50 per month)
  • Receiving bank transfers from another UK account - FREE
  • Sending bank transfers within the UK - FREE
  • Cash payments into the account - £1 per £100 up to £1500 per month then £0.80 per £100
  • Cash withdrawals at ATM within the UK - FREE
  • Inbound international payments - below £100 charged at £2, over £100 charged at £7 per payment
  • Outbound international payments - from £15 per payment
  • Receiving in a cheque - £0.65 per cheque
  • Sending out a cheque - £0.65 per cheque

Credibility and Protection

  • FSCS protected UK based account
  • UK Customer Service
  • One of the largest banks operating in the UK
  • Over 1,700 branches in the UK

Please note the above fees and services are subject to change. Please check the exact fees and services being offered to you if you decide to apply for this account through our referral service. The supplier reserves the right to change or withdraw a product or offer alternative products at any time.

Companies registered in Scotland requesting a Lloyds bank account will be referred to the Bank of Scotland as Lloyds do not operate branches in Scotland. The Bank of Scotland is part of Lloyds Banking Group plc. The account offered still includes an 18 month free banking period and  very similar fee structure.

(3) Online Business Current Account
Instant opening and no credit check**

  • A Business Account for new start-ups and existing small businesses. No credit check required and can be opened the same day** in most cases. This account is available if the applying director is a UK resident (other directors can be resident overseas).

How to apply for the account

  • No interview and no paperwork to complete. Application is completed by phone or online.
  • No credit check required. The UK business address and applying directors home address can not be virtual/third party addresses.

How you operate the account

  • Online servicing
  • UK Customer Services
  • Post Office to pay in cash
  • Mobile phone and tablet app

Withdrawing money

  • Card at cash machine (ATM)
  • Card at shops/retailers/online stores e.t.c.
  • Bank transfers out
  • Direct Debits and Standing Orders
  • NO cheques are provided - you can not pay by cheque with this account

Paying money in

  • Bank transfers in (BACS  and Faster Payments)
  • Pay cash in at local Post Office
  • NO cheques are accepted as payment into this account

Charges to operate the account

  • Annual fee in first year - £69
  • Second year on-wards annual fee currently - £69
  • Receiving bank transfers from another UK account - FREE
  • Sending bank transfers within the UK - 3 free p/m then £0.99p each
  • Cash payments into the account at a Post Office - 0.25% (First £1,000 free p/m)
  • Cash withdrawals at ATM within the UK - £2 per withdrawal
  • Inbound international payments - £15 (Not applicable for all countries)
  • Outbound international payments - NOT POSSIBLE
  • Receiving in a cheque - NOT POSSIBLE
  • Sending out a cheque - NOT POSSIBLE

Credibility and Protection

  • Fully FCA regulated with an E-Money issuer license
  • UK Customer Service
  • Over 100,000 business accounts already opened
  • Customer funds are safeguarded and held in a segregated account with RBS at all times and cannot be used to invest or for lending.

Please note the above fees and services are subject to change. Please check the exact fees and services being offered to you if you decide to apply for this account through our referral service. The supplier reserves the right to change or withdraw a product or offer alternative products at any time.

So which account do you choose?

There is very little difference between these three accounts but the key points are -

 The Lloyds account provides the longest period of free banking at 18 months

 The Barclays and Lloyds accounts give you the ability to issue and receive cheques while The Online Business Account option does not offer this facility

 The Barclays and LLoyds accounts are cheaper in the first year but in year two or three the The Online Business Account option may be cheaper depending on your circumstances

The Online Business Account requires no credit check so if there is adverse credit history connected to one of your directors or shareholders then this account is the best option

 The Online Business Account can be applied for instantly with the account number and sort code being available at the end of the application process for successfully verified customers

 If you need to send/receive bank transfers internationally then The Online Business Account does not have the facility for outbound international payments so the Barclays or Lloyds accounts are recommended

 

How to apply for a bank account though Simple Formations

 

Online while forming your company

When you form your company with us we will offer you the available bank accounts. This is done towards the end of the formation process, before you checkout. Simply tick the relevant box when offered and we will arrange for the bank to contact you as soon as possible once the new company has been registered.

Email us

If you have not formed your company with us we can still offer you a bank account through this free service. Simply send us an email using the email address on our contact page. Please send us your company name, company number, your contact details and the details of the bank account you are interested in.

 

*References to free banking mean the usual monthly fee for the account in not charged during this free banking period. Other charges may still apply, further details are available during the application process prior to committing to opening the bank account

**References to Instant opening/same day account opening only if the addresses supplied can be verified and the company name and number match Companies House records. Sorry, this account is not available if the company is using our virtual address or any other third party address.

Please note Simple Formations are unable to guarantee any application with one of our partners will be successful. If your business plans rely on a successful application we recommend you apply for the relevant account and await the outcome before making further business decisions. 

Please note Companies House processing times are an estimate only and not guaranteed.

Simple Formations is a trading name of Small Firms Services Limited. We have been trading since 1998 and are one of the UK's longest standing Company Formation Agents

We accept the card payment by American Express, Mastercard and Visa

We accept Visa, Mastercard and American Express

Small Firms Services Ltd The Apex 2 Sheriffs Orchard Coventry, CV1 3PP