Lloyds Business Bank Accounts
What is a Lloyds business bank account?
Lloyds offer a range of business bank accounts that are designed for large established businesses, charities and schools, small businesses and start-ups and sole traders and freelancers.
Each account has different features, benefits and charges to optimise your business banking, and ensure you don’t pay for aspects you aren’t going to use.
Depending on your business and how you operate, you can choose the best account for your banking needs.
All of the account classifications are fairly straightforward; however, to qualify for the larger business current account you’ll need an estimated turnover of over £3m for the next 12 months.
Why use a Lloyds business bank account?
If you’re registered as a limited company, it’s a legal requirement to hold your company cash in a business account - separate from your personal bank accounts.
If you’re a sole trader, contractor or freelancer and haven’t set up your own limited company, there’s no legal requirement for you to own a business bank account.
But here's why a business bank account is still a good idea:
- Business accounts separate your expenditure and earnings from your personal banking, meaning you can accurately track your spending and calculate your net profits.
- You can get automatic linking to Lloyds’ accounting software: Business Finance Assistant. This software sends invoices for you, manages your expenses, monitors your financial performance and sorts your tax returns.
- You can get expert support from Lloyds’ UK-based business management team, along with access to various online digital skills training courses.
What are the benefits of a Lloyds business current account?
Along with the above business banking essentials, you also get a number of other benefits from using a Lloyds business account:
- Lloyds offer business loans to account holders for up to £250,000 for small businesses and start-ups (and more for larger businesses) helping you take your business to the next level
- Accept card payments to your business – online, over the phone or face to face
- Company credit cards
- Business overdrafts
- On-the-go baking with the mobile business banking app
All of these features allow you to up the efficiency of your business operations, leaving you with more time to spend on your customers and growing your business to its full potential.
What are the charges for a Lloyds business account?
Lloyds’ business account charges vary depending on the type of account you open.
In this article, we’ll focus on:
- Lloyds’ smaller business account - great for small companies, sole traders and the likes
- Lloyds’ larger business account - great for businesses with an annual turnover of £3m+
Lloyds’ small business account:
- First 12 months FREE
- £7 per month fee after the first 12 months
- Free electronic payments forever (in and out)
- Cash payments - £1 per £100 for the first £1,500 per month, then £0.90 per £100
- Credit in and cheques in or out - £0.85 per transaction
Lloyds’ business account fees for larger businesses:
For the larger business bank account, there are two fee options you can choose from depending on your banking preferences.
Business Extra Tarif:
- Cost-effective option for mixed transactions (not just electronic)
- £15 per month maintenance fee
- £0.37 per electronic transaction (e.g., Business Debit card transactions and ATM withdrawals)
- Slightly cheaper for cheques, cash payments and other branch transactions
Electronic Business Tariff:
- Free electronic transactions
- £20 per month maintenance fee
- More expensive for cheques, cash payments and other branch transactions
Can I switch my current business bank account to a Lloyds business current account?
Yes, you can switch your existing business bank account to Lloyds under the Current Account Switch Guarantee.
Lloyds will switch your bank account for you on your behalf. They will:
- Have your previous account closed and transfer your credits and balances to your Lloyds business bank account
- Transfer all your incoming and outgoing scheduled payments
- Automatically redirect all payments to your old account to your Lloyds business account for at least three years.
- Refund you for any interest or charges levied by your old business account provider
How do I open a Lloyds business bank account?
The best way to open a Lloyds business account is online. It’s the quickest and most efficient method.
For a smaller business account, you’ll need:
- A copy or photograph of your signature
- Basic personal information like your name, date of birth, address and e-mail address
- Your business information including name, address, business activities and expected turnover
It takes about 20 minutes to apply for an account but can take up to 4 weeks for Lloyds to accept your application and complete the necessary checks.
For a large business account, you’ll need to speak to a Lloyds team member after you provide your business information and banking requirements.