Digital banking platforms, also known as Authorized Payment Institutions (API) or e-money institutions/issuers, generally don’t consider themselves banks and promise something different to their traditional competitors.
These platforms offer alternatives to the traditional bank accounts available on high streets. They are easy to establish and operate entirely via your mobile device, from which you can access all the banking options available online.
Which one is the best for your small-scale business will depend on many aspects, from your company’s size and the features you’ll need. In this thorough guide, we will compare the capabilities and costs of the most popular platforms.
ANNA
ANNA is available to all UK residents who are the directors of limited companies and firms structured in a partnership or sole trader.
In the application, you can use clever invoicing and can generate invoices for purchases and sales that are automatically generated to help the company you work for. The app will politely pursue outstanding payments and be advised of taxes on corporations and VAT, as well as self-assessment tax return due dates (compliant with Making Tax Digital).
ANNA provides a pay-as-you-use plan. You can pay PS14.90 monthly; or PS49.90 per month (both without VAT).
Revolut
Revolut is an excellent option for companies that travel or deal with foreign customers. Customers can store, exchange and transfer more than 150 currencies using the current exchange rate.
It is possible to issue metal, plastic or virtual cards to track employees’ spend in real time.
Revolut includes rewards and benefits from partner companies like Zipcar for Business, Pact Coffee and Shopify.
The accounts you’ve received:
- Free (PS0 per month)
- Grow (PS25 per month)
- Scale (PS100 a month)
- Enterprise (bespoke contact Revolut)
- Freelancers can choose between the Free account (PS0 one month) and Professional (PS7 per month) as well as Ultimate (PS25 monthly).
Starling Bank
This Starling Bank business account is available to those who are self-employed, the sole proprietor of a limited company, or an entity with multiple owners. The report must be used for at least 18 months to be eligible.
There is no charge for monthly usage of the account. You could upgrade to a toolkit PS7 each month to enhance your company’s capabilities. Other tools are invoices, automated matching, email integrations, and VAT recorded on transactions. Also, you can register an account in euros for PS2 a month. Or a US-dollar business account for the month of PS5.
If you’d like to deposit cash, it can happen through Post Office branches nationwide. It’ll set you back 0.7 per cent (PS3 minimum) per deposit.
Tide
Through Tide, you can get live forecasts for your business, with the capability to forecast your balance thirty days ahead. Additionally, you will receive practical tips to increase your cash flow.
There are also free invoice templates and the option to schedule instalments. The bundle is completed with support in the app and integration with Xero and QuickBooks.
There are three different accounts offered at Tide: Free (PS0) Plus (PS9.99) Plus (PS9.99), Plus (PS18.99) plus Cashback (PS49.99)
Monzo
Monzo provides a business bank account that is available to sole traders and directors of a Limited company registered as a limited liability through shares (Ltd). Multi-user access is offered to limited corporations. Make sure you’ll need personal accounts with Monzo before applying to open an account for business.
There aren’t any accounts available for specific types of business. However, this could change in the future.
To reduce the risk of financial crime, you can make payments of PS5 to PS300 in cash in one amount or at least PS1,000 each for six months.
Regarding the features available, Monzo integrates with Xero, FreeAgent and QuickBooks. Through Monzo Business Pro, new Xero users will get 6 months of the cloud-based accounting software for free when they sign up on your Business Pro account. There’s also the tax Pots option, which means you can put an amount of income for taxes each time you get paid. Additionally, you may choose to receive a notification each when you receive a payment.
Airwallex
Airwallex provides a business account that includes international and domestic business accounts, corporate cards and expense management at one location.
This account can be used for multi-currency transactions. It allows you to begin collecting money from customers in the currency they prefer so that it is possible to trade worldwide without any formalities.
It’s free to sign up, there are no set fees, and you only make a small cost for conversion.
You can access various software and integrations like Xero and Oracle and sign up for an account in a matter of moments by using the web.
Coconut
For sole traders and limited businesses (with more than 2 directors), Coconut can handle books, banking invoices, tax and bookkeeping.
Connect your existing accounts and credit cards from over 25 different banks like Barclays, Lloyds and Starling. Notifications will inform you the payment was either received or made and will instantly categorize the transaction.
Sold-out traders may get additional assistance with tax documents to aid the self-assessment process. It is, of course, tax digital-compliant software.
Calculate how much tax you’ll be liable for and provide tips for what expenses can be claimed to maximize your tax savings.
Mettle
Mettle is a subsidiary of NatWest. However, it’s an entirely separate branch. It means that you shouldn’t call NatWest and anticipate them to help with the details of your Mettle account.
The eligibility requirements are based on whether you’re a sole trader or an entity limited to more than two owners. Still, you’ll need an account balance of not more than PS100,000 (or PS50,000 for the sole trader) to be eligible.
One of the most important features is the ability to create and send invoices via phone, including a logo for your business. Like Coconut, the notifications let you know you’ve received payment. You’ll still need to be able to reconcile the price with the outstanding invoice.
It’s the halfway point about chasing past-due invoices. The system will remind you that the account is past due, but you’ll be required to email your client to follow up.
The way you manage transactions is that you can control regular payments within the app, attach receipts to commerce, and export expense information.
In addition, it is possible to sync your account to FreeAgent, Xero or QuickBooks; however, you can also export it to CSV compatible with accounting programs other than QuickBooks. FreeAgent costs nothing and will save the user PS150 each year.
The most crucial consideration is that the application doesn’t fall under the Financial Services Compensation Scheme (FSCS). But, it is covered by the FCA safeguarding rules and related guidelines. The goal of safeguarding is to ensure that the company can repay the customer in case the company is insolvent.
Cashplus
Cashplus claims that opening an account will take just minutes instead of months.
This is an excellent account if you already have employees that are paid a salary. Add as many as 20 corporate expense cards for your employees to use. You can centrally manage employee expense cards and travel cards using an online platform.
Please take advantage of a cash advance for business to aid cash flow and incorporate it into the online accounting software.
Countingup
It is a reasonably brand-new company in the market of mobile banking.
Its Business offering includes daily reports on real-time profit and losses, tax estimates, and custom invoices.
It is recommended to do this when your company is based in Britain because you cannot send or receive international payment through this account because it isn’t equipped with an IBAN. But you can get one from Countingup’s Partner CurrencyFair.
Accounting features are present across all accounts, including receipt capture and categorizing automatic operations.
It’s PS3 for those who have a monthly balance of PS0-PS750. PS9 per month for customers with monthly deposits between PS750 and PS7,500 or PS18 each month for unlimitable monthly deposits.
SumUp
SumUp, a payment processing company SumUp has announced an account for businesses that offer. This account is targeted at freelancers or sole traders, as well as small enterprises, that are available for free. However, the withdrawal fee is charged.
Link your MasterCard to Apple Pay or Google Pay to speed up transactions. By using the SumUp Card reader, you can sell your product and get cash on the next day of work, even on weekends and bank holiday days.
SumUp includes an invoice tool that lets you create invoices that are customized via your mobile or PC. Send payment links to clients via text messages, WhatsApp, Facebook or any other platform.
Card One Money
The CardOneMoney account CardOneMoney (formerly CardOneBanking) is targeted at solo traders, limited corporations or partnerships with revenue of at least PS2m.
Four additional pre-paid corporate MasterCards will be linked with your company account for use within your company. Exporting your statements to a cloud-based accounting platform like Xero, Sage, and FreeAgent is also possible. Transferring money internationally and domestically using a wide range of currencies is also possible.
Make cash deposits into your account through the Post Office and cheques through Barclays Bank.
It’s important to note that this option isn’t covered under Financial Services Compensation Scheme. Financial Services Compensation Scheme either.
It’s PS12.50 per month, with a PS55 charge for the application.
