Lloyds Bank Business Banking

About Lloyds Bank

Lloyds Bank was founded in 1765 and in 2009 became part of the Lloyds Banking Group, bringing together Lloyds Bank and the Bank of Scotland, amongst others. Since pooling together the 300 plus combined years of banking knowledge Lloyds Bank has become one of the UK's biggest banks (they are one of the 'Big Four Banks'), serving more than a million businesses across England and Wales. Lloyds Bank used to be one half to the well-known Lloyds TSB bank before their separation back in 2014.

See our full Lloyds Bank business bank account review of features, fees and how they compare against other online and high street bank accounts.

Lloyds Bank pros & cons

Pros of Lloyds

• Free banking for new businesses for 12 months
• Accounts available to fit businesses of different sizes & needs
• Overdrafts, loans, & credit cards are available

Cons of Lloyds

• Critical reviews, especially in regard to customer service
• No digital support channels

Lloyds Bank business current accounts

Lloyds Bank offer a total of two current accounts, depending on business type and size:

• Start-up & Small Business Account - this is for startup businesses that have an estimated annual turnover of less than £3 million. The first 12 months of banking is free and then it's £7 per month.
• Business Current Account - this is their standard bank account, suitable for larger businesses with turnover more than £3 million per annum. There are two tariffs to choose from, their Business Extra (best for cash businesses) or Electronic Business (best for cashless businesses).

These are the typical fees associated with Lloyds Bank's business accounts, outside of the free banking period:

Overdrafts

Lloyds Bank offer arranged business overdrafts from £500 up to £25,000, for businesses that turnover less than £3 million or between £3 and £25 million

The typical interest rate is 10.85% with arrangement fees that start at £12 per month for overdrafts between £500 to £5,000 and 1.99% annual fee (£120 min.) for overdrafts of £5,001 to £25,000.

For businesses that require an overdraft of more than £25,000, rates and fees can be discussed upon application.

Eligibility

To be eligible for a Lloyds Bank account you must:

• Be a sole trader, partner or director
• Be a UK resident (all owners must be UK residents, if applicable)
• Be a UK-based business
• Be 18 or over
• Need the account for business use

Opening an account

Here's how to open a Lloyds Bank business account:

1. To open online download Lloyds' app from the App Store or Google Play or sign up from their website
2. To open in store find your nearest Lloyds Bank and head on in
3. Complete their application - Lloyds will confirm your eligibility
4. Verify your ID - with photo ID such as a passport or photocard driving licence
5. Approvals can take up to 4 weeks

Lloyds Bank savings accounts

Lloyds Bank also offer savings accounts, these include a fixed term, instant access and notice account:

• Instant Access Account- can be opened with a £1 deposit and you can withdraw as much as you'd like with no fees to pay. The interest rate is 1.00% to 2.02% AER.
• Notice Accounts - choice of a 32 and a 95-day notice account (only available to businesses that turnover £3-25 million), offering interest rates of 2.53% and 3.88% respectively. The minimum opening deposit is £10,000 and the balance of the account must stay above this too.
• Fixed Term Deposit Accounts - deposit from £10,000 and then choose a fixed term to lock your funds away for; three to 12 months or fixed maturity dates, there are penalties for withdrawing before the fixed date. The interest rate varies from 1.91% to 3.50% AER.

Here's a summary of Lloyds Bank's business savings accounts:

Lloyds Bank reviews

Lloyds are rated 4.1 out of 5 stars on the App Store, from over 3,100 ratings.

Similarly, they get and 4 stars from customers on Google Play, from over 6,400 reviews.

Lloyds score a low 1.7 stars on Trustpilot, from over 4,800 reviews, with 80% only giving them 1 star. These reviews include personal banking customers too

Information correct as of 12th September 2024.