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Monzo Business Account Review
Apply online for a Monzo business bank account today
Monzo Business Banking Overview
Monzo, a UK challenger bank that received its banking license in 2017, offers a digital-first approach to business banking. Renowned for its comprehensive mobile app and round-the-clock customer support, Monzo provides two main types of business accounts: the free ‘Lite’ account and the ‘Pro’ account at £5 per month.
The ‘Lite’ account is suitable for startups or small businesses that don’t need invoicing software integration. In contrast, the ‘Pro’ account caters to more advanced needs with features like integrated accounting with Xero, QuickBooks, and FreeAgent, tax pots for setting aside money for tax bills, multi-user access, and invoicing capabilities. Despite its strong offering, Monzo does have limitations, such as no overdraft facilities or business credit cards, and restrictions on cash deposits.
Applying for a Monzo business account requires you to be a sole trader or a registered limited company by shares in the UK. The bank’s digital-first model means it lacks a physical branch network, so all account management is done digitally through its mobile app or web interface. Monzo’s business banking has been well-received, with high rankings in customer satisfaction surveys and strong ratings on Trustpilot and app stores.
However, Monzo’s business accounts also have some drawbacks. For instance, there is a charge for depositing cash and a limitation on the amount that can be deposited every six months. Additionally, the integration with accounting software is available only with the ‘Pro’ account, and the lack of a physical branch network might be a downside for those who prefer in-person banking services.
In summary, Monzo provides a modern, app-based business banking solution with various features suitable for different business needs, from basic account management to more advanced functionalities like invoicing and tax management. While the lack of traditional banking services like overdrafts and the restrictions on cash deposits might be limiting for some businesses, Monzo’s digital approach, competitive pricing, and strong customer support might make it an attractive option for small and medium-sized businesses looking for a digital banking solution.
Monzo Accounts FAQs
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What are the main features of Monzo business accounts?
Monzo offers a free business account option and a paid option. Accounts are accessible online or via Monzo’s mobile app. Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS). Additionally, you may be able to access online banking on the same day as you apply.
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Are there any limitations with Monzo business accounts?
Yes, account management is not possible over the phone or at a branch. Monzo accounts cannot receive international payments, except for euro transfers. Also, Monzo does not offer business accounts to charities or partnerships.
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Who is eligible for a Monzo business account?
Eligibility is for sole traders or registered limited companies based in the UK. Limited companies must be active on Companies House, have one active company director and at least one person of significant control, primarily earn income from selling goods/services, and be a tax resident only in the UK. Monzo does not support some business types like partnerships and charities and excludes certain high-risk industries.
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How can I apply for a Monzo business account?
To apply, use the Monzo app, provide your business address, registered company name or number (if a limited company), unique tax reference number, and ID. You’ll also need to answer some eligibility questions and wait for approval.
Services offered by this provider may change over time. Always check Ts&Cs.