A challenger financial institution is a substitute for Excessive Avenue banks, reminiscent of HSBC, and may provide small companies a wider vary of services and products than conventional banks and, in some circumstances, be cheaper.
Key takeaways
- A challenger financial institution is a smaller, newer retail financial institution that provides revolutionary, technology-driven options for shoppers.
- Revolut Enterprise is the best choice for small companies making or receiving common worldwide funds.
- Starling Financial institution is the best choice for sole merchants as a result of it doesn’t have account charges and free invoicing and MTD software program.
- Cynergy Financial institution is the best choice for linked financial savings accounts.
Comparability desk of UK challenger banks
* With free plan.
**With minimal steadiness necessities.
Overview of challenger banks for UK companies
Revolut Enterprise
The Revolut Enterprise account is greatest for companies trying to ship and obtain worldwide funds with its multi-currency account.
There are not any charges for forex trade, which means your enterprise received’t eat into its income.
Revolut not too long ago acquired its banking licence, which means funds will likely be FSCS protected as much as £120,000 (of eligible deposits).
Plans begin from £10 monthly for a Revolut Enterprise Fundamental plan, though that is an necessities package deal. The Develop plan, £30 monthly, sees a major improve in options, reminiscent of 5 no-fee worldwide transfers (versus 0 with Fundamental) and 100 fee-free native transfers (versus 10).
With the Develop plan, you possibly can earn as much as 2.15% AER variable on financial savings as much as £500,000.
Why select Revolut Enterprise?
- Multi-currency account which accepts, sends and spends funds in as much as 30 currencies
- No-fee forex trade
- Cost options out there with low transaction charges
- HR software program out there
Proper now, you possibly can obtain £100 welcome bonus by signing as much as Revolut Enterprise by way of Small Enterprise. To obtain the £100 you should onboard by way of the hyperlink beneath. Supply ends 31/12/2026. Charges, promotional phrases, and T&Cs apply.
Get began with Revolut Enterprise
Trustpilot ranking: 4.7/5 (401,484 evaluations)
Monzo
Monzo has three plans out there for enterprise accounts: Lite (£0), Professional (£9 monthly), and Group (£25 monthly). Lite is greatest for sole merchants simply beginning out, whereas the Professional and Group plans are higher suited to extra established companies.
Professional offers you entry to invoicing software program, digital playing cards, built-in accounting, and unique accomplice gives.
Group has the identical advantages as Professional, however in extra gives bulk funds, expense playing cards and as much as 15 group members will be added to the account.
Monzo is a digital-only financial institution, which means it has no bodily branches, nonetheless it does have 24/7 human buyer help.
Monzo’s financial savings accounts aren’t probably the most aggressive, with greater charges out there elsewhere.
Why select Monzo?
- No month-to-month account charges (with Lite)
- 24/7 human buyer help
- Sole dealer loans out there
- Making Tax Digital software program included
Trustpilot ranking: 4.6/5 (67,851 evaluations)
Allica Financial institution
Allica Financial institution is geared in direction of established companies reasonably than start-ups or sole merchants who’re simply getting began as you’ll want £50,000 to open a Enterprise Rewards Account (their enterprise present account) and have been integrated for not less than 12 months.
In addition to a devoted relationship supervisor contact, you possibly can earn as much as 4.08% with market-leading linked financial savings accounts. The Enterprise Rewards Account integrates with Xero, Sage, FreeAgent and QuickBooks.
There are not any month-to-month account charges with Allica Financial institution.
Why select Allica Financial institution?
- No month-to-month account charges
- Market-leading financial savings accounts
- Phone help throughout working hours
- As much as 1.50% cashback on card spend
Trustpilot ranking: 4.7/5 (1,799 evaluations)
Cynergy Financial institution
Cynergy Financial institution gives companies a variety of financial savings choices tied into an interest-earning present account.
You would earn £350 with Cynergy Financial institution’s present account, which has 3.50% AER variable, in case your steadiness is as much as £10,000. Their easy accessibility saver, which has a minimal deposit steadiness of £10,000, can be 3.50% AER variable, making Cynergy Financial institution a stable possibility for companies which have constructed up reserves.
There are month-to-month account charges linked to Cynergy Financial institution, £5 monthly, though proper now there’s a restricted time provide that waives these charges for the primary 12 months. Phrases and circumstances apply.
You can also make worldwide funds with your enterprise checking account in as much as seven main currencies.
Why select Cynergy Financial institution?
- Earn curiosity on funds in your present account
- Excessive rates of interest on easy accessibility and spot account merchandise
- Choice to open EUR or USD accounts
- Low month-to-month account charges
Trustpilot ranking: 4.4/5 (5,630 evaluations)
Starling Financial institution
Multi-award profitable Starling Financial institution provide enterprise accounts for restricted corporations and sole merchants, with 24/7 help and no month-to-month charges for each account sorts. It’s a digital-only financial institution, which means it doesn’t have any bodily branches.
Included with a Starling sole dealer account is free, HMRC-recognised Making Tax Digital (MTD) software program and free invoicing software program. Enterprise Account customers additionally obtain this free invoicing software program, though the MTD software program is changed by Accounting Plus, which submits VAT returns on to HRMC, and prices £7 monthly till April 2027, when it rises to £14 monthly.
Starling doesn’t provide any financial savings accounts for enterprise accounts but it surely does have Areas, which lets you create pots separate out of your steadiness for issues reminiscent of tax returns.
Why select Starling?
- Free entry for a number of administrators
- No charges on UK funds, in or out
- No month-to-month account charges
- Invoicing software program and MTD software program included free for Sole Dealer account
Trustpilot ranking: 4.1/5 (46,107 evaluations)
Zempler Financial institution
Previously Cashplus Financial institution, Zempler Financial institution has already helped over 650,000 companies stand up and working, with its financial institution accounts geared toward sole merchants, freelancers and SMEs.
The Enterprise Go account has no month-to-month charges, though it’s restricted to three free funds and transfers monthly (35p afterwards), which suggests it will not be appropriate for small companies who might want to make plenty of funds every month.
As a substitute, the Enterprise Go account could also be extra suited to sole merchants with minimal funds to make, reminiscent of on-line tutors or freelance writers.
There are not any financial savings accounts linked to the free account, solely pots to put aside cash for bills.
Proper now, Zempler will reward you with £100 for those who open an account and deposit £100 into your new enterprise account. Phrases and circumstances apply.
Why select Zempler Financial institution?
- No month-to-month account charges
- UK phone help from actual people
- Built-in accounting with Xero, QuickBooks and Sage
- Free MTD software
Trustpilot ranking: 4.5/5 (16,832 evaluations)
Get began with Zempler Financial institution
Metro Financial institution
Based in 2010, Metro Financial institution’s Enterprise Financial institution Account is for companies with a turnover of lower than £2 million, together with sole merchants, restricted corporations and start-ups.
If you happen to’re trying to change suppliers, Metro Financial institution are providing 31 months of no account upkeep charges, no fees on eligible transactions, no minimal steadiness necessities, and fee-free money paid in, paid out, and exchanged as much as £10,000 monthly.
Metro Financial institution additionally gives financial savings deposit accounts for companies, together with a 1 12 months fixed-rate 3.20% AER, though greater charges will be discovered elsewhere.
Why select Metro Financial institution?
- No month-to-month account charges in case your steadiness stays at £6,000 or above for the entire month
- Branches out there nationwide
- Native Enterprise Supervisor at hand to assist
- Borrow as much as £60,000 with Enterprise Overdraft
- Bill help
Trustpilot ranking: 2.3/5 (5,679 evaluations)
Handelsbanken
Swedish challenger financial institution may not be a well-known title, however they rank very extremely in an unbiased survey of SME banking, coming 4th in total service high quality, 1st for overdraft and mortgage companies, 1st for relationship/account administration, and 1st for companies in branches.
If you’re searching for a slick on-line or app expertise, Handelsbanken have scored low for his or her digital banking, coming final within the unbiased survey.
Handelsbanken cost £25 monthly, which can make them extra appropriate for bigger SMEs searching for a non-public financial institution expertise.
Why select Handelsbanken?
- Excessive total service ranking
- Devoted account supervisor
- Over 100 branches throughout the UK
- Company borrowing options out there
Trustpilot ranking: 4.2/5 (175 evaluations)
Unity Belief Financial institution
Based in 1984, Unity Belief Financial institution, primarily based in Birmingham, offers specialist enterprise banking companies for socially minded organisations. They deal with lending to organisations that assist folks in locations that want it probably the most, so if your enterprise is a social enterprise, Unity Belief Financial institution could be a great match for you.
Charges begin from £7 monthly in case your turnover is beneath £100,000, and Unity Belief Financial institution have put aside £100 million to assist prospects obtain their decarbonisation aims.
Unity Belief Financial institution additionally present enterprise financial savings accounts for enterprise present account prospects:
- 1 12 months Fastened Time period: 3.50% AER
- 32-Day Discover Account: 2.73% AER variable
- On the spot Entry: 1.96% AER variable
Why select Unity Belief Financial institution?
- Nice match for socially-minded organisations
- Enterprise borrowing options out there
- Financial savings accounts out there
- Cost options out there by way of partnership with Elavon
- UK-based help group
Trustpilot ranking: 4.5/5 (409 evaluations)
Incessantly requested questions
What’s a challenger financial institution?
A challenger financial institution is a small, not too long ago created financial institution that competes with conventional, longer-established banks (typically known as Excessive Avenue banks). To distinguish themselves from bigger rivals they typically deal with digital options and will be digital-only with no branches.
Are challenger banks secure?
If in case you have funds deposited with a challenger financial institution that fails and FSCS protected, you’ll be lined as much as £120,000 per eligible individual. It’s essential to notice that if you’re registered as a sole dealer and use the identical financial institution in your private and enterprise accounts, your cowl is barely £120,000 between the 2 accounts.
We now have solely listed challenger banks which are lined by FSCS on this article.
Which challenger financial institution is greatest for worldwide funds?
Revolut Enterprise is the perfect challenger financial institution for worldwide funds as a result of you possibly can maintain and trade as much as 25+ currencies. Nevertheless, to obtain 5 no-fee worldwide transfers you should have the Develop, Scale or Enterprise plans.
Do challenger banks settle for sole merchants?
Starling Financial institution, Monzo, Zempler Financial institution provide enterprise accounts for sole merchants with out month-to-month account charges. Metro Financial institution additionally has no account charges, however provided that your steadiness stays over £6,000. Revolut Enterprise, Cynergy Financial institution, Handelsbanken and Unity Belief Financial institution settle for sole merchants however have month-to-month account charges ranging from £7 monthly.
Allica Financial institution doesn’t settle for functions from sole merchants.
Which challenger financial institution ought to I select?
This can rely upon your enterprise. Nevertheless, these are the components you must contemplate when making your determination:
- Month-to-month account charges
- Variety of free transactions monthly
- Further financial savings accounts linked to the financial institution
- Wider enterprise options out there with the financial institution (e.g. card readers or HR software program)
- Worldwide funds
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