Opening a Lloyds business account: Everything you need to know

7 minute read

Lloyds is one of the UK’s leading banks, and it offers its business services to everyone from individuals, to small UK businesses, to huge multinationals.

This article will take a look at how to open a business account with Lloyds, whatever size of business you’re dealing with.

What are the different account types for businesses with Lloyds?

One size certainly doesn’t fit all when it comes to business banking, so it’s no surprise that Lloyds has a variety of accounts on offer. This section will take the main categories one at a time.

Don’t forget that this isn’t really the full extent of your options, though: Lloyds isn’t the only place you can go for business banking. It always pays to shop around, so take time to check out a few different banks too - and maybe even some other options. TransferWise for business, for instance, is a particularly good option for businesses that often need to send or receive money from overseas.

But anyway - here’s the info you need on Lloyds business accounts.

Business accounts

For standard commercial businesses, Lloyds tailors its approach based on the company’s turnover. Whether your company has a turnover of up to £3 million, £3 to 25 million, or over £25 million, will determine which sort of business account you’ll need.¹

Lloyds business accounts are available for all the major categories of business, from sole traders to limited companies and partnerships.² If your business has a turnover above £3 million, you might hear the term “commercial banking” rather than “business banking”.

Advantages of Lloyds business accounts include access to the many other business products that Lloyds offers, such as loans and credit cards, and their own system for accepting card payments.³ There’s also a special business mobile banking app, if you need to keep up with your finances on the go.⁴

Treasurer’s accounts

If you’re looking after the finances for a club, charity or society, you might need a treasurer’s account rather than a normal business account. It’s designed for smaller organisations with an annual turnover below £50,000, and it’s light on fees with free daily banking, so long as you stay in credit. One nice bonus is that you can get free presentation cheques for if you’re making a large donation or maybe awarding a big prize.⁵

Schools accounts

There’s a special type of account for schools, too, especially designed for state schools and academies. Some of its tailored benefits include deposit accounts available for surplus funds, no charges for you if a payee’s cheque is recalled by their bank, and internet banking with the option for multi-person authorization.⁶

Doing business overseas and need to make international business payments? TransferWise could save you money versus your bank.

When you have to pay employees or suppliers overseas it might seem logical to do this with your bank. You already have an account there, they have all your information, so it just seems easier. Although these are valid reasons, easier certainly doesn’t mean cheaper.

Most banks won’t convert your money with the mid-market exchange rate when you make an international payment. Instead they add a mark-up and charge you a hidden fee that way. TransferWise is different. Its smart technology skips hefty international transfer fees by connecting local bank accounts all around the world. Which means you can save up to 8x by using TransferWise rather than your bank when you send your money abroad.

TransferWise also has a lot of additional features for business users. You can connect with Xero to make your life easier, upload a batch of payments in one go or even automate your payments by integrating with our API. And there’s more to come in the future.

What are the requirements to open a business bank account with Lloyds?

The exact requirements for opening a business bank account depend on what sort of business you’re setting up. If you’re a sole trader - an individual who is self-employed - then the process is different from if you’re going to be part of a limited company or partnership. Clubs, societies and charities also have slightly different requirements.

Here’s a summary of the requirements you’ll need to provide in most cases, but bear in mind that it will vary according to your specific business type.

  • Personal information: ID and proof of address. Whichever sort of account you’re opening, you’ll need to provide basic information about the key individuals involved: just you if you’re a sole trader, or, for a partnership for instance, anyone who owns a certain amount of shares or voting rights, or operates the bank account.
  • Verification: You’ll also need to prove your business is what you say it is. For a limited company, you’ll probably need to supply the certificate of incorporation and/or registration documents with Companies House; for a partnership you’ll need to provide evidence of that partnership existing, and so on.
  • Business details: The information Lloyds will need includes the business’s name, the date and country of formation, and address. You will also need to have any previous banking details at the ready as well. Further, you may need to provide information about the business’s activity, employees, investment, expected turnover, tax status, and sources of income. The required information will differ depending on the type of business account you’re setting up.

These are the basic examples of the information that you will need to provide, but as this is also dependent on your business type - it is always best to check with Lloyds directly as to what is required.

For larger businesses, the process may be somewhat more involved. In this case, you’ll need to talk to someone from Lloyds in detail about the requirements.⁷

How can you open a Lloyds business account?

Lloyds have to tried to make setting-up your business account as simple as possible, with their online application process.⁸ You can also apply⁹ or speak to an advisor¹⁰ over the phone with specialised teams, depending on your annual turnover.

The method for opening a business account with Lloyds again is dependent on your specific business. But here’s an overview of the process that should work in most cases.

  1. First, identify exactly which sort of account you need: determined by if you are sole trader, limited company, charity, etc
  2. Assemble the necessary documents and information for all stakeholders
  3. Then you can begin the process online. Lloyds has an easy-to-use online tool that can get your application under way quite smoothly. However, be aware that setting up a business account often isn’t quite as easy as setting up a personal account, so Lloyds may need to request some documents and checks after you submit your application.⁸
  4. After checks are finalised, Lloyds will set up your account and you’ll be ready to go.

What are the fees for a Lloyds business account?

If you’re a new small business owner, Lloyds might offer you 18 months’ worth of free day-to-day banking. But after that, or if you don’t qualify, these are the basic fees you’ll face. It’s not a comprehensive list - you should check directly with Lloyds for a full breakdown.¹¹

Service Fee
Monthly fee £6.50
Cash payments in or out
  • £1 per £100 for the first £1500 per month
  • £0.80 per £100 for anything above £1500
Cheques in or out £0.65
International payments¹²
  • Various options available between £15 (via internet banking) to £28 (SWIFT transfer)
  • For non-EEA transfers, there may be an additional correspondent bank fee of £12 (USA, Canada, non-EEA Europe) or £20 (rest of world)
  • Plus likely markup on exchange rate

It’s possible that international payment fees might not be a particularly big concern to you and your business. But for any business that makes international payments with any frequency, it’s something to think carefully about: international transfers can end up getting very expensive very quickly - and not just with Lloyds.

TransferWise might be able to help. It’s a specialist in international transfers, and always offers the mid-market rate, meaning that the transfer is free from the markup that banks typically add when they convert your money.

How can you contact Lloyds business banking support team?

To make sure you have all the information you need about a Lloyds business account, you might want to get in touch with them. Here are some of your options:

  • Search the FAQs or chat with a virtual assistant on the Lloyds website - look for the “Ask us” button on the side of the screen
  • Call them on 0800 056 0056 if you’re a new customer¹³
  • Call their business management team on 0345 072 5555¹⁰
  • Lloyds is also open to questions via Twitter, on @lloydsbankbiz¹³
  • Or, of course, head into a branch and talk to someone

Lloyds also have direct contact numbers, depending on your annual turnover, to help with your application:

  • Call them on 0800 056 0056, if you are a start-up, to apply over the phone for a business account⁹
  • Call them on 0345 304 3546, if you have a turnover up-to £3 million
  • Call them on 0345 030 6262, if you have a turnover of over £3 million⁸

It always helps to shop-around - so check out an alternative for fast, secure international payments with low fees, from TransferWise for Business.

Choosing the right account for your business is vital. There are a lot of options available to you, so it is essential to take the time to research the different features and benefits that banks and providers have to offer, as well as considering the costs of using their services. Lloyds offers a range of account options that may fulfil your business needs, but if you need a multi-currency account as your business grows, it’s worth comparing the products available against a specialist service, such as a business account from TransferWise, to see which will work best for you.

Sources used: 1. 2. 3. 4. 5. 6. 7. 8. 9.. 10. 11. 12.. 13.

All source checked on 01-March 2019

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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