Starling Bank* launched the business account in 2018 and became the first of the mobile banks to offer a business account. Founded by Anne Boden, Starling is a front runner amongst the app-only banks when it comes to personal accounts, but how does it compare when it comes to business banking.
For more information on Starling's personal account, you can read our review here.
What is Starling business banking?
Starling Bank launched a 'free, uncomplicated and quick' business account that promises no fees for opening an account, making payments or withdrawing cash. Business owners can start to manage their account entirely from their mobile phone in just 10 minutes.
Anne Boden, Chief Executive Officer, Starling Bank, said:
“In a market with almost no meaningful competition, entrepreneurs and small business owners have for too long been marginalised and taken advantage of by big banks. Having spent the past year building an award-winning bank and personal current account, today we’re happy to announce that we’re launching a business account which offers all of the same great features and more to small businesses and entrepreneurs. “Starling’s mobile business banking solution is free, uncomplicated and quick, taking the effort out of banking so our customers can spend more time growing their business, and less with their bank.”
Is my business eligible?
Sole traders and Limited companies are eligible to open a Starling business bank account. If the company is limited it must be registered at Companies House. Registered business owners must be a UK resident.
How does Starling business banking work?
You don't have to be a Starling Bank customer to apply for a business account with Starling, however, if you already bank with Starling you can easily apply for a business account within the app. Simply go to the home page and click 'Get a new Starling account' and then 'Get a business account'.
If you don't already have a Starling Bank account you will need to verify your identity using one of the following:
- Passport
- EU/EEA ID card
- UK Residence Card
- UK photo driving licence (full or provisional)
To confirm your business type Starling may also ask for one or more of the following:
- Invoices
- Bank statements
- Accountant's letters
- Signed agreements/contracts
- Qualifications
- Payslips
You can open a Starling business bank account as either a sole trader or a limited company.
Starling 'limited company' business bank account features
- Free business banking - no monthly fees
- Deposit cash and cheques - deposit up to £20,000 (no more than £250 in coins) cash to your account via the Post Office and deposit cheques less than £500 via the banking app
- Digital receipts - keep track of payments with digital receipts
- Spaces - Manage your money with spaces for costs such as tax and expenses
- 24/7 customer support - contact someone at any time of day
- Automatically connect to your accounts software - such as Quickbooks, Xero and FreeAgent
- Starling Business marketplace - connect with additional products that can help your business run more smoothly
- Overdraft facility - adjust how much you need up to £150, 000 in-app and see the cost there and then* (interest rates of 5%, 10% and 15% EAR)
- Instant payment notifications - get notified as soon as money enters and leaves the account
- Automatic expense categorisation - have your expenses categorised for ease of reporting
- Multiple director accounts - have more than one user on your business account
- No debit card fees abroad - you won't be charged additional transaction fees when spending abroad
- FSCS protection - your account is protected up to £85,000 by the Financial Services Compensation Scheme (FSCS)
*Starling Bank has said it is currently focusing on delivering CBILS and BBLS to its customers, so are not currently accepting normal business loan or overdraft applications from customers.
Starling 'sole trader' business account features
Starling Bank sole trader applications have been temporarily stopped and Starling aims to resume applications from 1st June 2020.
- Free business account - set up in just a few minutes
- 24/7 customer support - contact someone at any time of day
- Instant payment notifications - get notified as soon as money enters and leaves the account
- Capture receipts in-app - store them in-app
- Automatic expense categorisation - have your expenses categorised for ease of reporting
- Marketplace - connect to other business tools e.g accounting or insurance
- Flexible overdraft facility - get an overdraft from £250 - £10,000 and adjust the amount to how much you need*
- Goals - separate money for different business goals e.g new laptop or business trip
- Deposit cash and cheques - deposit cash to your account via the Post Office and deposit up to £500 in cheques via the app
- Connect to tools for your business - easily link your account to insurance and accounting software with Marketplace
*Starling Bank has said it is currently focusing on delivering CBILS and BBLS to its customers so are not currently accepting normal business loan or overdraft applications from customers.
Multi-currency account
If you need to spend in different currencies Starling currently allows you to hold a Euro or Dollar Business account whilst Starling says it is working on adding 21 more currency accounts.
Starling Euro account
- Hold, send and receive payments in Euros
- Convert money with no hidden fees and a 0.4% conversion fee
- Send money via SWIFT for a flat £5.50 fee or send your payment via a local partner with prices starting from 30p
- Instant payment notifications
- Spaces to separate your money
- Weekend transfers
- One bank card to manage both GBP and EUR accounts
- Unique IBAN number
- FSCS protection
Starling Dollar Account
- £5 monthly fee
- Hold, send and receive payments in Dollars
- Convert money with no hidden fees and a 0.4% conversion fee
- Make and receive payments via the ACH payment network with no fees
- Instant payment notifications
- Spaces to separate your money
- Weekend transfers
- Send up to $25,000 on the same day with ACH
- One bank card to manage both GBP and USD accounts
- Unique ACH routing number
- FSCS protection
The Business Toolkit
Starling Bank has created a business toolkit for business accounts which offers boasts additional accounting and VAT features. Currently FREE for the first month, then £7 a month. The business toolkit offers:
- The ability to send and manage invoices
- Automated expenses
- An easier way to manage tax (it estimates how much you should be saving and creates a report to help you complete a self-assessment form)
- Manage bills and schedule payments
- Keep on top of your bookkeeping admin
- Keep track of bills by uploading invoices and scheduling payments
- Record VAT
- Submit your VAT
- First month FREE
How much does a Starling business bank account cost?
It is currently free to open and manage a Starling business bank account* and the costs incurred are outlined in the table below.
| Business | Sole Trader | |
| Account Fee | Free | Free |
| Business Toolkit | £7 | £7 |
| Overdraft Interest rate | 5%,10%,15% | 15% EAR |
| Overdraft fee | 1.5% of limit or £50 | Free |
| Unarranged overdraft | no fee | no fee |
| Sending money in UK | FREE if sent by faster payments, direct debit or standing order | FREE if sent by faster payments, direct debit or standing order |
| Sending money outside UK | You will be charged the exchange rate (this is shown to you before you make the transfer)* | You will be charged the exchange rate (this is shown to you before you make the transfer)* |
| Receiving money from UK | FREE if receiving £ | FREE if receiving £ |
| Receiving money outside UK | FREE (Can only accept £ and € at this time, € will be converted using the exchange rate) | FREE (Can only accept £ and € at this time, € will be converted using the exchange rate) |
| Depositing money | £3 charge up to £1,000 0.3% of the amount £1,000 and above |
£3 charge up to £1,000 0.3% of the amount £1,000 and above |
| Cash withdrawal in £ | FREE from an ATM £0.50 if withdrawing from the Post Office |
FREE from an ATM £0.50 if withdrawing from the Post Office |
| Cash withdrawal in foreign currency | FREE (subject to the Mastercard exchange rates and you may be charged an ATM fee) | FREE (subject to the Mastercard exchange rates and you may be charged an ATM fee) |
| Debit card payment in £ | FREE | FREE |
| Debit card payment in foreign currency | FREE (this may be subject to exchange rate depending on the currency you wish to pay in) | FREE (this may be subject to exchange rate depending on the currency you wish to pay in) |
| Replacement card | Free if lost or stolen in the UK You may be charged £60 if lost or stolen abroad |
Free if lost or stolen in the UK You may be charged £60 if lost or stolen abroad |
| Certified documents | You may be charged a £20 fee | You may be charged a £20 fee |
*you may also be subject to additional fees charged by the receiving banks (Starling is not accountable for these).
Is Starling Bank's business account safe?
Starling says that 'keeping your money and personal details safe is our biggest priority' and it protects business accounts in a number of ways. To open an account you need to verify your identity using a government-issued identity document as well as an additional verification step of video identification.
Your device is also secured by a pin number and a password is required for setting up and authorising payments. Instant notifications allow you to check for fraudulent activity on your account when payments are sent and received, and the ability to freeze and manage your card in-app allows you to stop anyone accessing your account should it be lost or stolen.
Starling Bank also uses 3D secure when users are making purchases online. This means authorisation may be required for specific purchases. In addition, Starling Bank is regulated by the FCA and your money is protected up to £85,000 with the Financial Services Compensation Scheme (FSCS).
Starling Bank business vs alternative business accounts
A comparison table between the best business accounts
| Barclays | Coconut | HSBC | Monzo | NatWest | RBS | Revolut | Starling | Tide | |
| Monthly fee* | Free for 12 months then £6 a month | Free | Free for 18 months then £5.50 a month | Free | Free for 18 months then PAYG | Free for 12 months years then PAYG | Free | Free | Free |
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Regulated Bank account
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Free UK transfers
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Free ATM withdrawal
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Categorised spending
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24/7 customer support
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Cash & Cheque deposits
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*based on basic business accounts
Conclusion
Pros of Starling's business account
- Contactable 24/7
- Safe and secure
- No management fees
- No fees on transfers abroad (except exchange rate)
- Marketplace feature linking you to other helpful business tools
- Spending insights
Cons of Starling's business account
- No branches, so everything is done online
- Unable to earn interest on a positive balance
- Charge to deposit money
Starling's business account* offers the same basic features as a typical high street bank but then surpasses them by offering additional features such as categorised spending, instant notifications and access to its marketplace. Its main mobile bank competitor is Monzo and there is little to choose between the two. Both have almost identical features, however, Starling does have the edge when it comes to depositing cheques, allowing you to cash up to 10 cheques per week, so long as they are £500 or less. Another alternative is Revolut for business which is more expensive but may suit businesses that trade in multiple countries.
Starling's business account is great for small business owners who want a quick and easy solution to business banking however it may need a longer track record to convince bigger businesses to make the switch.
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