Revolut Business Review: is it the best business account?

Revolut was launched in 2015 by business partners Nikolay Storonsky and Vlad Yatensko as a pre-paid card. It has since developed to offer numerous products including a business account.

Revolut for business customers can:

• Hold, receive and exchange money in 28 different currencies without astronomical charges
• Easily transfer money between Revolut accounts (both business and personal)  for free
• Schedule and approve payments
• Set up direct debits (currently for GBP account customers only)
• Issue pre-paid cards to employees
• Connect with software with Revolut

What is Revolut for business?

Revolut has launched a business account in a bid to shake up business banking and tackle the high charges associated with traditional banks when sending money abroad. Revolut describes itself as a 'digital alternative to the big banks' and accounts can be set up online and without the need to set up an appointment or visit a branch.

Is my business eligible?

To open a Revolut for business account your business must be registered with a physical presence in the following countries within the European Economic Area (EEA) and Switzerland:

• Aland Islands
• Austria
• Belgium, Bulgaria
• Croatia, Republic of Cyprus, Czech Republic
• Denmark
• Estonia
• Finland, France, French Guiana
• Germany, Gibraltar, Guadeloupe, Guernsey, Greece
• Hungary
• Iceland, Ireland, Isle of Man, Italy
• Jersey
• Latvia, Liechtenstein, Lithuania, Luxembourg
• Martinique, Malta, Mayotte
• Netherlands, Norway
• Poland, Portugal
• Reunion, Romania
• Saint Martin, Slovakia, Slovenia, Spain, Sweden, Switzerland, Svalbard and Jan Mayen Islands
• United Kingdom

If your business operates outside of these areas you can register your interest with Revolut to be notified when they plan to expand to that country.

Revolut for business supports companies that are:

• Private limited company (LTD)
• Public limited partnership (PLC)
• Partnerships
• Limited liability partnership (LLP)
• Sole traders & freelancers
• Unlimited companies

It cannot yet support charities, public sector companies, foundations and cooperatives but Revolut says it is looking to do that in the future. For more information on types of businesses that are not accepted at Revolut, you can head to Revolut's website.

How does Revolut for business work?

To sign up to Revolut for business you need to fill in an online application that should take around 10 minutes. The application is then reviewed by Revolut who may need to contact you further. The application process normally takes around 1-7 business days to complete but can take a bit longer.

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With Revolut business you can open two types of accounts; corporate and freelancer.

What are the requirements to open a Revolut for business corporate account?

• Name, address, ID photo and a selfie for an identity-check
• Business name, address and incorporation details
• A summary of the company's location and what the business does
• Basic information regarding the company directors/shareholders - defined as someone who owns more than 25% in the business - (an identity check for these is also required, this can be submitted on their behalf or completed by them)

What are the requirements to open a Revolut for business freelancer account?

• Name, address, ID photo and a selfie for an identity-check
• A summary of the location and what the business does

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Once you have successfully set up your business account you will receive an account in GBP with an account number and sort code and a EUR account with IBAN and BIC details. You will now be able to hold, exchange and transfer your money amongst 28 currencies.

• AUD, AED
• BGN
• CZK, CHF, CAD
• DKK
• EUR
• GBP
• HUF, HKD, HRK
• ILS
• JPY
• MXN
• NZD, NOK
• PLN
• QAR
• RUB, RON
• SGD, SEK, SAR
• TRY, THB
• USD
• ZAR

How much does Revolut for business cost?

More than 250,000 companies have signed up to Revolut for business already and the number is steadily growing. The fees for Revolut for business are charged monthly and the cost varies depending on the type of business account you have opened.

What is the cost of the Revolut for business company account?

* Additional charges applied after the free limit is exceeded, further details explained below. 

What is the cost of the Revolut for business freelancer account?

* Additional charges applied after the free limit is exceeded, further details explained below. 

With a Revolut for business account, the fees are billed monthly (every 30 days) and are deducted from your business account balance. If there are insufficient funds then the amount with be deducted from one of your other linked accounts.

Revolut for business account features

With the Revolut for business account, you benefit from the following features:

• Multiple currencies - The ability to hold and exchange 28 currencies
• Local accounts - 2 local accounts in GBP and EUR
• Prepaid debit cards - business expense cards for your team members. They can be used to make card payments as well as withdraw cash for a 2% fee.
• Virtual cards - for secure online transactions
• Direct debits - Revolut business accounts in the UK can set up direct debits under Payments > Scheduled payments 
• Mobile app - card owners have a mobile app that they can use to track their business spending
• Link to business applications - link to applications such as Xero, FreeAgent and Slack to help keep you connected
• 24/7 support - For paid business users only
• Permissions - the ability to set user permissions to control who can see what (only available for paid business plans)
• Payment approval - get notifications to approve payments (only available for paid business plans)
• Bulk payments - create a bulk file to allow multiple payments at the same time (only available for paid business plans)
• Perks - paid business plan users can gain access to additional perks with some of the following companies, Apple, Zipcar, Expensify, Google Ads, Slack, Deliveroo
• Expense management - manage receipts and expenses on the go (for paid business plans only)

As of January 2020, Revolut has stated on its website that it is hoping to improve its business account with the following features. Some will only be available to paid business accounts.

• Loans and overdrafts
• Local accounts in additional currencies
• Free card payment acceptance
• Payroll
• Metal cards
• Customisable designs for cards
• Raise, send and track invoices
• Direct debit management

Are there any limits when using a Revolut for business account?

You cannot make more than 500 transfers in a 24 hour period with a Revolut for business company account and no more than 2500 transfers in a 7 day period. If you have a Revolut for business freelance account, you are unable to make more than 15 transfers in a 24 hour period and no more than 80 transfers in a 7 day period.

Is my money safe with Revolut for business?

With no bank branches and everything based online it can make it hard to completely trust an 'app-only bank'. Revolut has applied for a banking license however it is not yet able to operate as a fully-fledged bank account. Your money is however held in an account with the partner bank Lloyds and Barclays. It is therefore protected by FCA requirements and in the event of the bank going bust, you would be entitled to claim your money back through those guidelines.

Any transactions made with a Revolut card are protected by Mastercard or Visa rules.

Pros and cons of Revolut for business

Pros of a Revolut for business account

• Flexible account options
• Mobile app
• Ability to issue cards to employees
• Easy to apply
• Secure
• Competitive exchange rate
• Free purchases
• Freeze card if lost or stolen
• Ability to apply for a Revolut for business loan

Cons of a Revolut for business account

• Does not accept cash or cheque deposits
• Daily £3,000 withdrawal limit and a monthly limit of £100,000
• Can't automatically add funds to the account
• Direct debits only available for EUR accounts
• 2% fee on cash withdrawal
• Not yet a fully-fledged bank
• Currently unable to earn interest

Revolut for business vs Monzo business vs Starling Bank business

Revolut's closest competitors when it comes to business banking are Monzo and Starling. So how does it compare to its competitors?

Monzo launched business banking in February 2019 to a small test of 100 business account holders. It is currently not offering new business accounts, however, it does encourage those who may be interested to sign their waiting list. Monzo business banking offers:

• Connections to accounting tools
• Multiple account access
• 24/7 customer support
• Money saving pots
• Contactless debit cards
• Instant notifications
• Instant bank transfers and direct debits

Monzo is planning to expand these features later in 2020 to include better money management, international payments and multiple payments.

Revolut for business v Starling bank business

Below is a table summarising the differences between a Revolut business and a Starling Bank business account. It is based on the free Revolut standard corporate account.

	Revolut	Starling
Cost	Monthly plan (one free account with basic features)	FREE
Deposit cash
Free local transfers	*
Instant notifications
Categorised spending	**
Integrated accounting software
FSCS protection
Direct debit
Overdraft
Free Cash withdrawal

*depending on the payment plan there is a limit to the number of free transfers

** this is available via the expense management tool with the paid for business plans 

Starling Bank was voted the Best Business Banking Provider in 2019 for its business account. It doesn't charge a monthly fee for payments, transfers, account fees or cash withdrawals.

However, it does state that business accounts for larger businesses (over £1.7m annual turnover) are only free for a limited time. In comparison to Revolut for business, Starling Bank appears to be one step ahead. It has all of the features you would expect of a business bank account and at a fraction of the cost of a Revolut for business account.

Revolut offers an interesting alternative to personal and business banking with its slick app and fee-free spending abroad. Starling bank still has the edge due to its additional functionality and lower cost but it will be interesting to see how they compare if and when Revolut for business operates as a fully-fledged bank.