Revolut’s Free 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
Monthly Fee
Free (basic version)
Currencies
25+ (send, receive & exchange)
International payments
£3 (basic version)
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Revolut business account at a glance
Launched in the UK in 2015, Revolut has made a name for itself as a challenger bank, 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, but as an ‘electronic money institution’ and not a fully-fledged bank, deposits are not covered by the Financial Services Compensation Scheme (FSCS) if, for example, you were to lose money in a scam.
Revolut takes great pains to point out, however, that as an electronic money institution it is required to safeguard any 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 fee-free 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 inbound 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.
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 £3 each. On Revolut’s Free version, there is no cost-free international transfer allowance.
Revolut does not offer an overdraft facility and no interest is paid on credit balances. It also doesn’t accept payments in by or cheque.
Who is the Revolut business account suitable for?
Revolut’s business accounts are available to freelancers, limited companies and partnerships.
Any kind of enterprise can get a Free account, but freelancers get the option to upgrade to Revolut’s Professional or Ultimate tiers for £7 or £25 a month, respectively. For this you’ll get five or 10 international payments per month, and 20 or 100 fee-free local payments per month.
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 repectively. The top tier, Enterprise, which is designed for larger businesses, comes with no limits and a monthly fee that’s tailored according to use.
If your business can work within the confines of a free 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.
