If you need a small business bank account or want to switch from an existing one, there are various factors to consider, including fees, flexibility, support and specific features. Choosing the right provider can be tricky due to the numerous options and the range of account features offered by different banks. 

In this article, we compare the best bank accounts for small businesses, exploring their key features, benefits and suitability considerations. Take a look.

11 of the best small business bank accounts in the UK

Our comparison includes both well-known high-street brands and fast-growing digital banks, offering solutions to meet different business needs and sizes. 

Here’s our selection of the UK’s best small business bank account providers:

1. Allica Bank

Our list of the best business bank accounts for SMEs begins with Allica Bank, the fast-growing UK challenger bank dedicated to business banking, focused on supporting established SMEs and mid-market companies. 

The bank has conducted a recent rebranding and achieved huge growth in recent years, including being named the fastest growing fintech in 2024, while doubling its profits and increasing its business lending to over £3 billion. 

Key features and benefits

• Fast digital onboarding
• Dedicated relationship managers
• Competitive variable AER on instant access savings (currently over 3.08% plus a boost of up to 0.5% if certain conditions are met)
• Up to 1.5% card cashback, based on expenditure levels  
• Integrations with popular accounting tools (including Xero and Sage).
• Loan facilities, including growth finance, commercial mortgages and asset finance for eligible businesses

Fees

• No fees for monthly account use and Faster Payments 
• Certain transaction types are subject to varying fees, depending on several key factors, such as size, region and speed
• Competitive interest rates on financial lending products

Suitability considerations

Allica is a digital-first business bank, but with dedicated relationship managers. It’s a good option for established SMEs who want modern features, hands-on support, competitive interest rates on savings, and benefits like loans and cashback.

2. HSBC

HSBC offers a wide range of business banking services, including support for small businesses and larger commercial banking needs.

Key features and benefits

• Dedicated small business banking accounts and HSBC Kinetic, for sole traders, which won Moneynet’s best app-based business account from 2022 to 2025 
• Business banking accounts for larger SMEs, offering relationship management
• Access to HSBC’s Small Business Growth Programme, which includes training courses with partners such as Microsoft, Upskill Universe and Google to develop key business skills
• Lending facilities, such as business loans and commercial mortgages, plus overdraft facilities for eligible businesses
• Fairly low interest on instant access savings, but up to 4.5% gross interest on fixed-term savings accounts

Fees

• No monthly fees for small business accounts, and fee-free for 12 months on larger accounts (£10 per month after this time)
• Free standard transfers, but varying small fees on withdrawals and deposits
• International transaction fees can get pricey

Suitability considerations

Strong choice for businesses wanting an international bank with broad product coverage and lending options; Kinetic is a good fit for sole traders wanting quick app-based onboarding. Verify which HSBC product suits your business size and credit needs.

3. Revolut

Revolut Business is a fast-growing business account aimed at companies with an international presence requiring quick, easy and low-cost solutions for managing cross-border payments. Revolut enables users to pay and receive money (online and in-person) in many currencies and enjoy a wide range of FX services.

Key features and benefits

• Multi-currency accounts, business cards and virtual cards
• Pay salaries, taxes and suppliers directly from your account
• Interbank FX rate allowances in over 25 currencies
• Tiered plans and bespoke account options
• Easy integrations with countless tools
• Smart banking features and automation tools, including innovative expense management
• At the time of writing, Revolut doesn’t offer business loans or overdrafts

Fees

• Tiered pricing with monthly fees from £10/month(Basic) to £30/month (Grow) and 90/month (Scale), plus custom pricing for Enterprise needs
• Each tier has different free FX/transfer allowances and varying transaction charges (beyond allowances) and processing fees

Suitability considerations

A good business bank account for companies that make regular international payments, with multiple global employees, customers and suppliers, that don’t require branch services, overdrafts or integrated lending facilities. 

4. Monzo

Monzo offers mobile-first business accounts for sole traders and limited companies, with tiered account plans. Designed for ease, speed and smart digital accounting and money management, Monzo business bank accounts were also ranked highest in the UK for service quality (at time of writing) in mandated independent banking service quality surveys.

Key features and benefits

• Fast mobile sign-up – 90% of business accounts are opened the same day
• Simple in-app bookkeeping tools
• Pots for savings and tax
• Easy integration with various accounting platforms, such as Xero, Freeagent, Sage and QuickBooks
• Free and paid account plans (Lite, Pro and Team), with the latter offering virtual cards, bulk payments and access to a greater range of perks
• Simple ways to pay and get paid, including payment terminals, payment links, QR codes, invoicing and integrated receipts
• Expense cards for people who need them, with access controls and limits
• Interest on savings (up to 1.40% p/a variable) and loans and overdrafts available (sole traders only)

Fees

• Free monthly account use for Lite users, £9 and £25 per month for Pro and Team plans, respectively
• Free to pay and receive money in the UK, and withdrawals are also free in the European Economic Area (EEA)
• Relatively low fees for card payments, with businesses paying fees to Stripe
• A 1% currency conversion fee applies for receiving international payments (capped at £1,000 per transaction), while outbound international transactions are minimal, processed via Wise, due to its partnership with Monzo, with fees starting at 0.33%

Suitability considerations

Monzo offers one of the best business bank accounts for freelancers, digital nomads, microbusinesses and small companies seeking mobile-first banking, high service quality, easy accounting and low-cost transactions in and outside the UK.

5. Co-operative Bank

The Co-op Bank provides business current accounts and lending solutions with an emphasis on ethical and relationship-focused banking. Offering a range of account options, commercial customers can enjoy cashback, low-cost banking, free accountancy software integrations and optional arranged overdrafts. 

Key features and benefits

• Several business bank account options, including:
  
  • digital accounts for small businesses
  • community/charity accounts
  • options for businesses of all sizes that need to deposit cash and cheques (DirectPlus)
• Ethical branding and customer-centric focus
• Instant access, 35-day or 95-day savings
• Overdraft facilities and other lending options are available, offering significant sums of capital to support growth, depending on eligibility

Fees

• No monthly fees on most accounts, and free up to 30 months with DirectPlus accounts (£7 per month after this point)
• Various fees for certain transactions (including withdrawals, deposits and international payments)
• Competitive interest rates on lending facilities, plus arrangement and security fees

Suitability considerations

Co-op Bank is one of the best business bank accounts for community-focused organisations and those aligned with the Co-op’s ethical approach, plus small businesses seeking hands-on support.

6. Zempler

Zempler Bank is an account provider aimed at small businesses and those underserved by traditional banking. In fact, iwoca recently partnered with Zempler to enable its customers to seamlessly access business loans of up to £1 million. Online account applications are among the quickest amongst UK banks, while limited companies can also apply for an overdraft during the application.

Key features and benefits

• Five-minute online application process with no credit check to apply
• Accountancy software integrations
• No fees to receive funds via faster payments and standing orders
• Integrated international payments via Wise
• Online and mobile app banking solutions with UK-based phone support
• Pay in and withdraw cash at any UK Post Office
• Overdrafts available on request
• Flexible loans available via Zempler’s' partnership with iwoca 
• Business Creditbuilder tool to track and build business credit

Fees

• Free monthly account use (Business Go), plus paid tiers from £9 to £19 per month (Business Extra and Business Pro, respectively)
• The first three outbound domestic manual electronic payments/standing orders each month are free, then £0.35 thereafter
• Outbound direct debits are free (but there is a £15 DD reject fee)
• Free inbound bank transfers
• UK ATM withdrawals cost £2, while deposits at UK Post Offices cost 0.55% of the amount paid in, with a minimum fee of £4
• Varied, low-cost international payments

Suitability considerations

Zempler Bank is ideal for all business types, especially startups and SMEs, with its free account incorporating many features that other banks charge for, and paid tiers available for larger businesses. 

7. NatWest

NatWest has long been one of the major high-street banks to herald its support for new and small businesses. The bank offers a range of business accounts, including bank accounts for startups and the self-employed, plus solutions for larger businesses with various lending services.

Key features and benefits

• Four main business bank account options for startups and smaller businesses, businesses with £1 million+ turnover, charities/non-profits and self-employed (Mettle)
• Branch, phone and digital banking support
• Access to lending facilities and merchant services (for larger businesses)
• Various business savings rates, depending on whether you require instant access or opt-ins with longer notice periods for withdrawals, ranging from 1–3.25 AER p.a. (variable)
• Dedicated relationship managers for certain businesses 
• Overdrafts and numerous borrowing options are available (including term loans, trade finance and asset financing), based on your account and circumstances

Fees

• Monthly account fees range from £10 to £160 for large business accounts, but no monthly fees on other commercial account types
• Free banking on everyday transactions for startups for the first two years
• Various fees apply to certain transactions and services, depending on the bank account type chosen

Suitability considerations

NatWest is one of the best business bank accounts for UK companies of various sizes that still want a high-street presence, in-person support and access to broader merchant services and lending facilities.

8. Tide

Tide provides an app-first business account aimed at sole traders, freelancers and small companies seeking easy-to-manage solutions, digital integrations and quick set-up.

Key features and benefits

• Fast online account sign-up – approved in minutes, with bank cards sent out by post
• Various integrations with popular accounting platforms, plus built-in accounting and tax tools and automation (including expense management)
• Easy and low-cost international transactions (free transfers on paid tiers) 
• Earn up to 4% AER p.a. (variable) on capital for the first 6 months
• Extensive options for payment acceptance
• Intuitive mobile-first user experience and handy categorisation features
• Funding Options marketplace offering various lending options to Tide’s commercial customers
• 24/7 in-app support

Fees

• No monthly account fees
• Various small fees for certain transactions and deposits
• Tide offers a free option and tiered paid plans (Smart/Pro/Max), opening up fee-free international transfers, enhanced rewards, better savings rates and free accounting features – see full Tide pricing plans and details

Suitability considerations

Best suited to microbusinesses, sole traders and start-ups seeking quick and easy set-up and money management, competitive cross-border payments, accounting tools and integrations and access to various credit facilities.

9. Starling

Starling’s fully digital business bank account is now used by over 450,000 UK companies, as this successful challenger bank continues to grow. Aimed at small businesses and sole traders, Starling offers smart digital features, easy integrations with popular platforms and various tools for managing invoices, expenses, bookkeeping and tax (through its Business Toolkit).

Key features and benefits

• Quick and easy digital account sign-up
• 24/7 in-app support
• Multi-currency accounts for global businesses
• Integrations with accounting platforms and cash flow tools
• An extensive suite of business money management tools
• Starling no longer offers loans, overdrafts or savings options for businesses

Fees

• No monthly fee for standard business accounts, £7 per month when adding Starling’s Business Toolkit
• Free UK transfers and payment acceptance, apart from CHAPS, which is charged at £20 for each transaction

Suitability considerations

Startling is ideal for startups, sole traders and small businesses seeking mobile-first business accounts, low-cost payment solutions and a range of useful accounting features.

10. Barclays 

Barclays offers a wide range of business bank accounts for those starting out, as well as growing companies and more established businesses, offering significant branch reach, sophisticated digital banking solutions and a wide range of commercial borrowing options.  

Key features and benefits

• Well-established business banking services and dedicated relationship managers, serving nearly a million commercial customers 
• Round-the-clock fraud protection and 24/7 business customer support
• Free accounting software with FreshBooks is available to all customers
• Cashback and rewards with the Barclaycard business credit card
• Educational programmes from Barclays’ Eagle Labs, which aim to help companies accelerate business growth
• Business overdrafts (typically between £1,000 and £25,000, but up to £50,000 possible) and various lending facilities, from loans and asset finance to mortgages and invoice financing
• Various savings options, with up to 1.55% AER p/a on instant access accounts, and varying higher interest rates offered on fixed-term solutions 

Fees

• No monthly account fees for the first 12 months, £8.50 thereafter
• No charges for most domestic transactions
• Counter services and deposits come with various moderate fees
• International transfers differ, depending on the type of transaction and destination, but can be as much as £25 per transaction

Suitability considerations

Barclays business bank accounts are best suited to companies looking for a wide range of products, rewards and benefits, extensive support and future borrowing capabilities.

11. Lloyds 

As one of the major high-street banks in the UK, Lloyds offers a range of business accounts, lending and access to an extensive branch network. Over 1 million UK businesses use its commercial accounts, enjoying various banking tools and services, from cash flow forecasting and accounting tools to business insurance and POS solutions.

Key features and benefits

• Full high-street presence
• 24/7 mobile banking
• Relationship managers for larger businesses
• Community, schools and credit union accounts available, beyond Lloyds’ main business bank account.
• Wide-ranging lending options, including loans, invoice finance, asset finance, overdrafts (from £500 to £50,000) and trade finance solutions
• Savings options to earn up to 2.77 AER p/a
• Business accounting support tools

Fees

• Free banking for up to 12 months, then £8.50 per month afterwards
• Charges for deposits and certain transactions apply, beyond allowances
• Loan and overdraft fees and interest rates vary depending on the option and model chosen, and are subject to eligibility 

Suitability considerations

Larger businesses needing comprehensive branch services, relationship management and various lending facilities and credit lines are well-suited to Lloyds’ business bank accounts.

Other UK business bank accounts that startups and SMEs should consider  

There are lots of other exciting fintechs and emerging challenger banks that provide modern digital banking solutions, suiting startups and small businesses. 

Here are some top business bank account providers for new and growing businesses in the UK:

• Countingup: A relatively new banking solution for self-employed individuals and small business owners that aims to combine and simplify money, management, bookkeeping, accounting and taxes.
• ANNA: Similar to Countingup, ANNA is an all-in-one business account for managing your money, invoicing, accounting, expenses, and more. The name stands for ‘Absolutely No Nonsense Admin’, which gives you a good idea of the brand’s approach.
• Virgin Money: Offering modern internet and mobile business banking solutions, with easy accounting integrations and access to insurance, lending and FX services, Virgin Money is a well-regarded commercial banking provider. 
• Wise: Previously named ‘Transferwise’, this successful fintech company originated as an international remittance provider, but began offering banking solutions to companies in 2021, aimed at freelancers, startups and small businesses.  

Metro Bank: Known for its focus on relationship banking, Metro Bank provides commercial banking, savings and lending services, and offers over 30 months without monthly fees when switching to their bank accounts.

Comparison table: Best business bank accounts for SMEs at a glance

The table below helps to show the best small business bank accounts and their key features, benefits and suitability considerations in a side-by-side visual comparison:

How to choose the best business bank account for your needs

From established high street banks to new challengers and digital-first options, UK companies not only have a wide range of banking service providers to choose from, but many also offer tiered business bank account options for different needs.

Our comparison of the best business bank accounts in the UK shows the scope of services and benefits of some of the top providers, but your choice comes down to matching solutions to your key needs and priorities.

Key criteria for your selection process

Consider the key criteria when selecting a suitable business bank account. Here are some questions to ask yourself when comparing options:

• What is the monthly account fee, and are there any introductory offers?
• What are the transaction costs and transfer fees (both domestic and international)?
• Can I use multi-currency accounts?
• Are there tiered options and what is included in each tier?
• What levels of service can I expect?
• Do I need branch support or am I happy with a fully digital solution?
• Does the provider offer overdrafts and other facilities and, if so, what are the sums I can get and rates I’d pay?
• How easy is the onboarding process?
• What integration capabilities are there with accounting software and other key tools and platforms?
• Are there any eligibility restrictions for my type of business?
• Am I fully protected by the FSCS?
• What additional features and rewards are there and do they cost extra?
• What is the interest rate I can get on business savings?

What you’ll need to open a business bank account

Different banks require varying levels of information when you get started, some of which is accelerated in digital onboarding processes rather than phone or in-branch sign-ups. However, here are some of the key things you may need when opening a business bank account in the UK:

• Proof of identity and address for owners, directors and other major shareholders
• Business registration/entity details
• An overview of your company and a business plan
• Proof of trading address and business premises address
• Key tax details, including VAT registration, if required
• Company bank account resolutions (confirmation of the decision to open the account) and authorisation
• Source of funds and beneficial ownership details
• Record bank statements, financial forecasts and details of existing credit lines/capital borrowing

As mentioned, certain banks will require greater levels of information, depending on their onboarding processes and your business type. For example, sole traders will enjoy a much faster sign-up when opening an account.

More handy resources on business bank accounts

We hope you found our comparisons of the best small business bank accounts in the UK helpful, allowing you to see the pros, cons and key features offered by different providers for varying business needs. 

We have lots of other handy resources. Check out iwoca’s guides to different types of bank accounts and related articles: 

• Sole trader bank accounts
• Startup bank accounts
• Charity bank accounts
• Best direct debit companies
• Open banking solutions
• Best business savings accounts

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