Revolut’s Basic business account scores points for its absence of monthly fees and limited free local payments. However, larger enterprises may find Revolut’s paid-for versions more cost-effective. No version of the Revolut business account comes with an overdraft.
Pros
- No monthly fees
- Create invoices in app
- Compatible with accounting software
- Hold multiple currencies
Cons
- Free local payments capped at 5 a month
- No overdraft facility
- Payments by cash or cheque not accepted
- Fees for international payments
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Revolut business account at a glance
Launched in the UK in 2015, Revolut has made a name for itself as an electronic money institute, disrupting the traditional banking model for individual customers and – since 2017 – business customers too.
Revolut offers an app-based business account with all of what that typically entails. Although it has a UK banking licence, customer money is not currently protected by the Financial Services Compensation Scheme (FSCS).
Instead, Revolut uses its own safeguarding process to protect funds you put into an account.
In effect, it means Revolut places your money in a trusted third party bank, invests it in low-risk assets or protects it with an insurance policy.
Revolut has received a 4.3/5 star rating on Trustpilot from almost 140,000 largely positive reviews.
Revolut Business account features
Revolut’s Basic business account charges no fees on transfers between Revolut accounts, and no fees on the first five local payments each month. Beyond that allowance, each outbound payment incurs a charge of 20p.
If your business is expecting more transactions than five a month, there are three paid-for tiers of Revolut’s business account that could prove more cost-effective.
All aspects of account management are handled through its app and online.
The app integrates easily with accounting software such as Xero and QuickBooks, and allows you to generate invoices. Account holders can invite team members to access the account, and can monitor and manage spending via the app.
Customers can hold and spend multiple currencies, but international transfers are charged individually at £5 each. On Revolut’s fee-free Basic version, there is no cost-free international transfer allowance.
Revolut does not offer an overdraft facility, and doesn’t accept payments in by cheque. However, its fee-charging Grow, Scale and Enterprise plans pay interest on in-credit balances.
Who is the Revolut Business account suitable for?
Revolut’s Business accounts are available to freelancers, limited companies and partnerships.
If your business is a company, you can upgrade to Revolut’s Grow or Scale tiers which offer much more generous limits of fee-free local and international payments for monthly fees of £25 and £100 respectively. Paying for these plans annually gives customers a 24% and 21% discount, respectively.
The top tier, Enterprise, which is designed for larger businesses, comes with custom limits and a monthly fee that’s tailored according to use.
If your business can work within the confines of a Basic account and the limitations on transfers, or its paid tiers make it more cost effective than paying a fee per transaction, Revolut might be for you.
If, however, you need an account with a credit facility, or your business handles cash and/or cheques that you’d need to deposit, you may be better off elsewhere.
How can I compare accounts for small businesses?
Before choosing an account it’s important to shop around and compare the deals on offer for business accounts, including weighing up the benefits against the relative costs.
By looking at the features available you can decide which provider is offering the right account for you and your growing business.
Alternatives to Revolut Business
If you’re looking for an app-based business bank account, Revolut is not the only option.
Virgin Money’s M Account for Business, for example, can be accessed online and via an app, charges no monthly fee, and pays account holders 0.25% cashback on business spending.
Or Mettle by NatWest is also a free-to-use business bank account aimed at start-ups and sole traders. It can be accessed via the Mettle app, and comes with functionalities such as invoice generation, virtual saving ‘pots’ and payment reminders.
Frequently Asked Questions
Is Revolut Business safe?
Although Revolut is registered as a bank in the UK, it does not fall under the Financial Services Compensation Scheme. The FSCS protects customer deposits up to the value of £85,000 per person, per institution, in the event a provider goes bust.
Howwever, Revolut is regulated by the Financial Conduct Authority (FCA) as an e-money institution. This means it is legally required to safeguard customer deposits with fully regulated UK banks.
Revolut offers a number of its own security features. For example, biometric logins which help prevent criminals from accessing your account and the function to ‘freeze’ a card in the app any time to prevent fraudulent spending if it goes missing.
Its app also incorporates a fraud detection software that warns customers if they’re about to make a fraudulent transaction.
Finally, customers can generate single-use card details when making a purchase online, reducing the risk of having card details stolen.
Where is Revolut Business available?
Revolut Business is available in 41 countries including the UK, France, Spain, Germany, the Netherlands, Belgium, Italy, Jersey and the Isle of Man.
US-based businesses are not currently eligible for a Revolut Business account.
Does Revolut offer business insurance?
Revolut does not provide its own business insurance.
However, customers can purchase a policy through the app that is underwritten by Chubb European Group.
Does Revolut Business offer overdrafts?
Revolut does not offer a business overdraft.
Business accounts that provide this facility include HSBC Kinetic, CashPlus Go and Monzo Business Lite.
What is the difference between Revolut and Revolut Business?
Revolut provides personal current accounts, savings accounts and investing services to individuals.
Revolut Business offers services to companies and sole traders.
Revolut Business offers several tools and features that aren’t available through its personal accounts, including:
- Multi-currency accounts
- Invoice generation
- Accepting payments
- Expenses tracking
- Integration with accounting software.