When you’re starting a small business you often end up doing everything yourself, and tasks like opening up a business bank account just make the to-do list longer.
It’s still important to put the effort into making the right choice, though. After all, the bank account that you choose is going to have a real impact on your everyday life as a business owner: you need something that is simple to use but packed with all the right features. Today, we’re going to run through the offering from Revolut so that you can understand whether it’s the right account for your needs.
Before we dive into the different features, let’s take a look at the Revolut Business package as a whole. The fact that there is a free account available will appeal to many – but that’s not the only perk. Revolut Business has been designed to help businesses that operate across the world and therefore need to handle lots of different currencies, so many of the features relate to international transfers and exchanges. It’s also very straightforward to use, with everything handled in-app and no need to visit a physical branch. Although some people are put off by the stripped-back approach, those who are used to running their life through their mobile phone will probably find that it makes life easier.
Understanding the cost
It’s free, right? Well, sort of. At the start of the summer Revolut launched their new free account, allowing businesses to sign up with no charge. However, there is a catch – and quite a big one – as these free accounts only include free card payments in the UK and up to five free money transfers, also UK only. After that you’ll need to pay a small fee for each transfer. If you want to go international then this is also something you’ll need to pay for: international transfers are £3 a throw, and foreign currency exchanges will include a 0.4% mark-up.
This means that these accounts are really only viable if you’re just starting out and know that your banking needs will be minimal. If that’s the case, the small individual fees associated with what Revolut calls the pay-as-you-grow model may still work out as a great deal.
Otherwise, you might want to look at some of the other offerings from Revolut Business, which include monthly subscriptions of £25, £100 or £1,000 depending on how many transactions you intend to make.
Giving your team access to the account
Revolut Business accounts make it really easy for you to give your team access to the account, so that they can take responsibility for different areas of spending. The free plans start with two team members (that’s you and one other), which can then be scaled to 10, 30 or unlimited members if you choose one of the subscription options. For each team member you can order prepaid debit cards or virtual cards, giving each person control of their own business finances.
Handling multiple currencies
Since Revolut Business is targeted at companies that operate in lots of countries, there’s no surprise that they excel in this area. Here’s what to expect:
- Hold, receive and exchange 28 different currencies. The fees here will depend on the type of account that you have. Each account type has a set allowance foreign exchanges, and if you go over that allowance then you’ll be charged a 0.4% mark-up. The allowance for free accounts is £0: all exchanges include the mark-up. It’s worth noting that even at the 0.4% rate you’re still getting an excellent deal, as some banks will charge as much as 5%.
- Make payments in over 150 currencies.
- Use multicurrency cards to help you manage your business travel expenses more efficiently, without paying large overseas transaction fees.
How to get started
Is Revolut for you? The free accounts make a lot of sense for very small businesses that are not expecting to make that many transfers and don’t have too many team members needing access to the account. For bigger businesses, Revolut is still a winner if you do a lot of business in multiple currencies; although you’ll likely need to opt for one of their subscription plans, you’ll still be getting a good deal.
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