Compare the best business bank accounts in the UK 2024

Before committing to a business bank account it’s important that you do your research and compare the best accounts on the market. Whether you’re the founder of a startup looking for the best financial options for your growing business or part of an established company that’s considering switching to a better provider. 

In this article, we’ll compare the best business bank accounts and alternatives on price, FX rates, customer support and benefits. We believe Airwallex offers businesses the best and most cost-effective global financial experience. But we’re biased, so we’ll let you decide!

What is a business bank account?

A business bank account or business account is a type of account that's opened in the name of an entity — as opposed to an individual.

Those who’ve tried to operate their personal and business affairs from the same account know this can get quite complex as your business grows. That’s why dedicated business accounts exist. They’re designed to provide business owners with the support, functionality and visibility they need to manage their business.

What alternatives are there to a Business Bank Account?

An alternative to a business bank account is a "business account" provided by non-bank financial services providers. Business bank accounts are great for getting started, borrowing and moving money domestically.

Many businesses quickly realise the limitations and fees associated with their business bank account as they grow - especially internationally - and soon opt for fintech providers who offer alternative purpose-built business solutions such as international payments, invoicing, company cards and expense management, often known simply as business accounts.

The top 8 business bank account and alternative providers in the UK in 2024

Airwallex: Known as an alternative to global banks, Airwallex offers international business accounts that enable businesses to manage, hold, and move funds globally with an array of global business-oriented features and tools.

Wise: Offers cross-border business accounts for easy and transparent money management across currencies with real-time exchange rates and low fees.

Revolut: Provides business accounts with features like multi-currency wallets, corporate cards, and expense management tools, catering to both SMEs and larger enterprises.

Starling: Known for its mobile-based business banking, Starling offers accounts with no monthly fees, integrates with popular accounting software, and provides tools for easy expense management.

Payoneer: Specializes in cross-border payments, offering business accounts that facilitate global transactions, with capabilities for mass payouts and receiving funds from international marketplaces.

HSBC: A global bank offering a wide range of business banking solutions, including current accounts, savings accounts, loans, and trade finance services.

Barclays: Offers business banking services including accounts, loans, and merchant services. Known for tailored solutions for businesses of varying sizes and sectors.

Lloyds Bank: Provides a variety of business banking products, including accounts, loans, and payment services, with a focus on UK-based SMEs.

NatWest: Offers business banking services, including accounts, funding options, and sector-specific financial advice, primarily serving UK businesses.

The top features to look for in business bank accounts and alternatives

Small businesses may have additional considerations. Finding a business account built specifically for small businesses in the UK can be challenging, but there are a few key criteria to look for in your search*.

1. Fees: Evaluate the cost-effectiveness of the service, ensuring that the pricing structure aligns with your business budget and offers value for money.

2. Speed to Implement: Consider how quickly the solution can be integrated into your existing systems, minimizing downtime and disruption to your operations.

3. Scalability/Future Proof: Assess whether the solution can grow with your business, accommodating increased demand and evolving needs without requiring significant overhauls.

4. Products Designed for Businesses: Look for solutions specifically tailored to meet the unique needs of businesses, offering features and functionalities that enhance operational efficiency.

5. Visibility and Transparency: Ensure the solution provides clear insights into financial operations, with transparent processes that allow for easy tracking and management of transactions.

Compare business bank accounts and alternatives in the UK

Use our table to compare a range of business bank accounts and alternative business account solutions offered by some of the UK's leading banks and FinTechs. 

*FX margin in addition to the interbank rate.

Sources last updated: Q1 2024. We have compared Airwallex's pricing structure with standard pricing published by competitors.

What’s the difference between a Business Account and a Business Bank Account?

The difference between a business account and a business bank account is that the latter is provided by a financial institution that holds a banking licence, commonly known as banks (and building societies in the UK).

A business account generally refers to an account and financial solution provided by a financial institution that does not hold a banking licence but does hold other regulated licences. Many modern fintechs, like Airwallex or Wise, have opted not to become a bank. Airwallex is able to build a business account service that covers payment collection, treasury, transfers and payouts, invoicing, expense management and cards. 

FinTechs usually offer cheaper rates, and come with software integrations and benefits that can help you streamline your finances and cut down on admin. 

Do I need a business account?

If you're a business owner, a business account can help professionalise your business and separate personal and business finances, making accounting and tax preparation easier. In any case, modern business accounts from fintechs like Airwallex are quick to set up, and offer multiple benefits such as fast and cost-efficient transfers, multi-currency wallets, and other solutions for your end-to-end financial operations. When deciding, consider factors like transaction volume and accounting needs.

Limited companies in the UK are legally required to have their own business account because they are a separate legal entity with their own financial obligations. 

Sole traders and freelancers can manage their finances from a personal bank account, but many choose not to because manually separating business expenses from personal ones can make tax assessment a headache. 

What do I need to set up a business account?

Setting up a business account is now easier than ever. Gone are the days when you had to go in-person to a bank branch, most providers will allow you to do everything online. 

All business account providers will ask for some documentation before setting up your account. This is so they can check that you are who you say you are. 

Sole traders will be asked to provide:

• Proof of identity, such as a picture of your passport or driving license. 

• Proof of address, such as a bill or bank statement. 

Limited companies will be asked to provide:

• Proof of identity for all company directors. 

• Certificate of incorporation.

• Memorandum and articles of association. 

Once you’ve submitted your documentation, your provider will look it over and assess your eligibility before setting up your account. This process should take no more than a week. 

Why open a business account with Airwallex?

Airwallex can help small businesses grow rapidly. Why do our SME customers love us? Here’s just a few reasons why.

1. We help companies easily access a global market and suppliers

Accessing global suppliers easily can bolster a local business, while taking your business to the world can lead to untapped growth opportunities. However, doing either of these things can trigger lots of questions for small business owners;

• How can you pay local suppliers and vendors to support global production and logistics?

• Do you need local bank accounts to accept and make international payments?

• How can you optimise your customer experience so that they can pay in their local currency and preferred payment method?

• Is it worth selling your product or service globally when you’re being hit with foreign exchange and conversion fees, over and over again?

Airwallex can help solve these problems, making international expansion more accessible than ever before.

2. Forget opening local bank accounts

Skip the excessive paperwork and open your Airwallex Global Account online in minutes. Collect payments from global customers in their preferred currency and spend your proceeds later in the same currency.

3. Skip conversion fees and costly foreign exchange (FX) rates

With our FX and Transfers features you can access market-leading FX rates no matter the transaction size and rapidly pay suppliers in 150+ countries and regions and 45+ currencies.

4. Take payments from popular international providers

Accept Payments from customers around the world through over 160+ payment methods, including Apple Pay, Google Pay, WeChat Pay and Alipay.

We’ve helped businesses around the UK scale to new destinations with our incredible FX infrastructure. Together, we’re taking amazing British ideas to the world.

Airwallex business account benefits

Fees

Setting up a business account with Airwallex starts from as little as £19 p/m.

For sending payments overseas, it's a small FX margin of 0.5% for Euro, USD, AUD, HKD, CNY, JPY, CAD, CHF, NZD, SGD and 1% for other currencies. 

Our FX margin is 80% cheaper than high street banks, making Airwallex a great option for companies that send and receive money abroad.  

Features 

• Multi-currency account: Open accounts in 23 currencies (including USD, GBP, EUR, AUD and CNY)

• Bank-beating FX rates: Pay just 0.5 - 1% for currency exchange. That’s 80% cheaper than high street banks.

• Transfers:Bypass the SWIFT network for fast, low cost international payments.

• Borderless Cards: Spend globally in multiple currencies with 0% transaction fees. Reward each of your employees with their own card and empower them to spend independently.

• Expenses: Upload and approve receipts in a click, set limits on a card level, and track spending in real-time.     

• Payment Links: Collect payments from customers in a click with unique Payment Links. Airwallex rates 

• Online payments: Connect Airwallex to your Shopify, Magento or WooCommerce store for cheaper multi-currency settlement.

• Bill Pay: Upload, approve, pay, and reconcile your domestic and international bills all in the same place.

• Integrates with Xero and Netsuite for easy bookkeeping. 

• Secure and protected: Airwallex is regulated by the Financial Conduct Authority (FCA) and holds an Electronic Money Institution (EMI) licence.  

What do British businesses say about Airwallex’s Business Accounts?

We’ve spoken to a number of our customers across industries to learn how they have used Airwallex Business Accounts to streamline their financial operations. Here’s just a few excerpts from our portfolio of success stories.

Conductr

Jos Van der Steen, Co-founder and COO at Conductr, a business that specialises in building attractions and experiences, struggled with the expensive pain of growing internationally.

“We tried Payoneer and Wise, but the interfaces were clunky and it's not easy to do anything. Airwallex is very easy and very convenient for us. A major benefit of Airwallex is how easy it is to open accounts in different countries - now we can pay suppliers quicker. It’s invaluable having a live conversion of all our accounts into a GBP value, so I get an immediate snapshot of our finances. Using Airwallex has saved us over £100,000 in fees in less than a year. It's been eye-opening how much we’ve saved by using Airwallex instead of our traditional bank.” - Jos Van der Steen, Co-founder and COO, Conductr.

Read Conductr's story.

Perspective Pictures

Video production agency, Perspective Pictures, frequently travels the world filming for impressive clients. Making international payments for sets, equipment and teams was a problem Rupert Rixon, Managing Director, simply did not need.

“Genuinely, Airwallex has saved us so much time, money, and hassle. Previously there would always be this anxiety when we were doing these big shoots or having to work with lots of remote teams and pay them and I would be constantly worried that we would have our bank account locked.” - Rupert Rixon, Managing Director, Perspective Pictures.

Read Perspective Pictures' story.

Olsam

Olsam buys small Amazon companies and grows them into eCommerce brands. With growth, they needed a better way to manage the global financial operations of their portfolio.

“The customer service and the responsiveness of Airwallex is a massive reason why we’ve chosen to work with you. We’re having to set up new accounts all the time, if we hit roadblocks we know we can email or call, and we’ll have a timely response. If you’re looking for a scalable and slick onboarding and set up process for each acquisition, Airwallex is fantastic. It also provides a great interface for viewing a consolidated list of seller centrals and Amazon stores in a nice dashboard. The design is very helpful for businesses like us.” - Sam Horbye, Co-Founder, Olsam.

“Airwallex allows us to switch between multiple business accounts with one log in, allowing easier management of multiple subsidiaries. And being able to integrate with Xero is really beneficial.” - Martyn Firth, Finance Director, Olsam.

Read Olsam's story.

If you’re interested in setting up an Airwallex business account, sign up today or click below to watch a 3-minute demo.

Related article: How to switch your business bank account in the UK

*Disclaimer: We wrote this article in Q1 2024. The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. If you would like to request an update, feel free to contact us at [email protected].