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Designed with the needs of small businesses in mind, Monzo Business makes it easy for you to set up a new account and start managing your money.
If you want business banking services, Monzo has a lot to offer from accounting software integration to Tax Pots. Just remember that you won’t have access to its full range of features unless you pay a monthly fee for its Pro account.
Monzo Lite Business Account
Free
Free
Free
n/a
- Available to sole traders, or the director of a registered limited company by shares (Ltd)
- Must be based in the UK
NerdWallet's Review Summary
Challenger bank Monzo offers businesses intuitive and efficient app-based banking, making it a great option for new start ups. Features offered by Monzo that might be useful to any business just taking off include round-the-clock customer service, free trials of accounting software and a pots feature that lets customers separate their money. However, some of these features are only included with Monzo’s Pro account, which carries a £5 monthly fee.
For further details, read NerdWallet’s Monzo Business Account Review.
Monzo key features:
- Accounts open quickly: New business bank accounts with Monzo are usually open and ready to use on the same day an application goes through.
- Free transactions: Electronic payments within the UK are completely free for Monzo’s business banking customers.
- Customer service: In-app customer support from Monzo is available to business customers with urgent concerns at all hours.
NerdWallet's Pros & Cons
Pros:
- There is a free business account available (Monzo Business Lite).
- At £5 per month, Monzo Pro offers a relatively low fee compared to other banks we reviewed.
- Accounts can be accessed online or via Monzo’s highly rated mobile app.
- You may be able to get access to online banking on the same day as you apply.
Cons:
- It is not possible to manage the account over the phone or at a branch.
- Business accounts are not available to charities or partnerships.
- Cash deposits carry a fee of £1 each. This might seem small, but it could make a significant difference to businesses that regularly need to deposit cash.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Learn more about how we bring you our review.
Key features
- Regulated by FCAMonzo is a digital bank regulated by the Financial Conduct Authority (FCA)
- Deposits protected by FSCSBusiness bank accounts, and if eligible, deposits may be protected by the Financial Service Compensation Scheme (FSCS) up to £85,000
- Free and paid accountsThere is a choice between a free and paid business current account
- Sole trader loans and overdraftsEligible sole traders can apply for loans of up to £25,000 and overdrafts of up to £2,000 with Monzo.
Monzo business account full review
Monzo is a relatively new contender on the business banking scene, launching its first business account in 2020.
Its products are currently available to sole traders and limited companies, with eligible deposits protected by the Financial Services Compensation Scheme (FSCS).
Monzo currently offers two versions of its business account. Monzo Business Lite is a free account with everyday banking facilities, while Monzo Business Pro is a paid account with a more extensive list of features.
Monzo Business Lite
Monzo’s free offering is fairly comprehensive and a good option to get you started. With a Monzo Business Lite current account, you can manage your business’s money and do your everyday banking without having to pay a monthly fee. Additionally, there are no fees for day-to-day transactions, such as UK bank transfers, scheduled payments or using your card abroad.
Monzo Business Pro
For a monthly fee of £5, Monzo Pro gives you all the features of Monzo Lite as well as a suite of add-ons. These include:
- Tax Pots, where you can set aside a fixed amount of each payment you receive to save for your tax bill
- integration with accounting software, such as Xero, QuickBooks and FreeAgent
- account access for up to two other users
- invoicing on the app
- Xero accounting software, free for six months (for new Xero customers)
- virtual cards
- auto-exporting of transactions
Monzo business account features: at a glance
| Pro | Lite | |
| Monthly fee | £5 a month | Free |
| Transaction fees | Yes (cash deposits, plus ATM withdrawals outside EEA*) | Yes (cash deposits, plus ATM withdrawals outside EEA*) |
| Account management | Via a mobile app Online | Via a mobile app Online |
| FSCS protection | Yes | Yes |
| Set-up time | Same day | Same day |
| Cash deposits | Yes (£1 at PayPoint) | Yes (£1 at PayPoint) |
| Cheque deposits | Yes (free by post) | Yes (free by post |
| Access to other banking services | Yes (loans of up to £25,000 for eligible sole traders. Overdrafts of up to £2,000 available for sole traders) | Yes (loans of up to £25,000 for eligible sole traders. Overdrafts of up to £2,000 available for sole traders) |
| International payments | Yes | Yes |
| Customer service | 24/7, via a mobile app Email: [email protected] Telephone: 0800 802 1281 | 24/7, via a mobile app Email: [email protected] Telephone: 0800 802 1281 |
| Multiple user access | Yes | No |
| Create and send invoices | Yes | No |
| Integration with accounting software tools | Yes | No |
*The EEA is the European Economic Area. It includes members of the European Union, alongside Iceland, Liechtenstein and Norway.
Duncan Ferris, Lead Writer and Business Expert at NerdWallet
What Our Nerds Say
“Monzo has a reputation for offering some seriously innovative features. Indeed, one of the perks of choosing a challenger bank like Monzo is creative tools that more traditional banks may not offer. For example, Monzo has recently launched industry-first security tools in order to protect users’ accounts in the case of phone theft.”
Where Monzo Business Account stands out
Quick set-up: You can apply from your phone via the Monzo app. The majority of business customers get an account the same day they apply, meaning you can have access to online banking almost straight away. Some business bank accounts can take up to a few weeks to set up.
FSCS protection: Monzo is a licensed UK bank and operates as such, meaning that deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. If you are a sole trader who also has a Monzo personal account, FSCS protection would cover you for up to £85,000 in total across all personal and business accounts you hold with the bank.
Free UK transfers: Not all business bank accounts offer free UK transfers – but Monzo does. This means you can avoid fees that, while small to begin with, quickly add up if you’re making multiple payments a day.
24/7 customer support: Due to its digital-only nature, Monzo’s 24/7 in-app customer support is an integral part of its business account offering – reflected in high scores for the Monzo mobile app.
Where Monzo Business Account falls short
No branch access: It is not possible to manage your Monzo account at a branch or over the phone, for either the free or paid account. This may be a problem for those wanting to explain a complex problem to someone in person, or who simply want access to a branch to make deposits.
No charities or partnerships: Monzo Business accounts are not available to charities or partnerships, which rules Monzo out if this applies to your organisation. Other banking providers may allow charities or partnerships, and some even have a dedicated type of account.
Cash deposits come with a fee: While the £1 fee to make a cash deposit at a PayPoint may not be a huge amount of money, depending on the type of business you have and how often you need to deposit cash, this could quickly add up.
Monzo business account customer reviews
Monzo’s customers have left reviews on a range of sites. Generally, these reviews are positive.
It’s worth remembering that these reviews are from all Monzo customers, not just its business banking customers.
- App Store: 4.9 out of 5, based on over 227,000 reviews
- Google Play: 4.7 out of 5, based on over 139,000 reviews
- Trustpilot: 4.2 out of 5, based on over 37,200 reviews
This information is correct as of 2 October 2024.
Monzo business account eligibility
To be eligible for a Monzo business account, you must be:
- a sole trader or registered limited company
- based in the UK
If you run a limited company, it must:
- be active on Companies House
- have one active company director listed on Companies House
- have at least one person of significant control listed on Companies House
- make the majority of your income from selling goods and/or providing services
- be a tax resident in the UK only
Monzo does not support some business types, such as partnerships (including limited liability partnerships) and charities.
There are also higher-risk industries that Monzo does not accept. Some of these, such as weaponry, gambling and illegal drugs, might be unsurprising, but Monzo also avoids customers running tattoo parlours, nail parlours, used car retailers and precious metal and stone businesses. You can find a full list of unsupported industries and business structures here.
How to apply for a Monzo business account
To apply for a Monzo business account, you need to take the following steps:
- Apply via the Monzo app.
- Provide your business address, registered company name or number (if a limited company), your unique tax reference number, and ID.
- Answer some eligibility questions.
- Wait for approval.
Review methodology
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Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.
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