Monzo vs Cashplus for business banking – Exploring features, fees, pros and cons

When it comes to business banking, entrepreneurs and small business owners are spoiled for choice. Traditional banks no longer dominate the market, as innovative fintech companies have emerged, offering alternative solutions tailored to the needs of modern businesses. Two popular options in the UK are Monzo and Cashplus.

In this article, we will compare Monzo vs Cashplus, highlighting their pros, cons, key differences, costs, and other essential considerations.

Monzo vs Cashplus

Features	Monzo	Cashplus
User Experience	User-friendly app	User-friendly app
Spending Controls	Yes	Yes
Budgeting Features	Yes	No
Integrations	Extensive	Limited
Cash Deposits	Limited	Available through PayPoint locations
Business Tools	Invoice generation, tax calculations	Prepaid expense cards, credit builder
Loan Options	Limited	N/A
Account Opening	Straightforward process	Quick process
Transaction Fees	Varies	Varies
Customer Support	Available	Available
Security Measures	Robust	Robust
Account Types	Business account	Business account, credit builder account
International Payments	Yes	Yes
Overdraft Facility	No	Available (subject to eligibility)
Foreign Currency Exchange	Yes	Yes
Check Deposit	No	No
Mobile Check Deposit	No	Yes
Business Debit Card	Yes	Yes
Direct Debits	Yes	Yes
Monthly Fees	Free basic account, paid plans available	Tiered pricing plans with varying monthly fees
Credit Builder	No	Yes
Accounting Software Integration	Yes	Limited
Financial Insights	Yes	Basic insights
Regulatory Compliance	Fully regulated by the FCA	Fully regulated by the FCA

It’s important to note that the information provided in the table may be subject to change. It’s always recommended to visit the respective websites or contact the providers directly for the most up-to-date and accurate information.

Statistics

1. Monzo:

• As of 2021, Monzo had over 5 million customers in the UK and was valued at approximately £2 billion.
• In 2020, Monzo reported a revenue of £67.2 million, marking a significant increase from the previous year.
• Monzo’s business accounts have seen substantial growth, with over 100,000 businesses signed up by 2021.

2. Cashplus:

• Cashplus has been providing banking services for over 15 years and has served over 1.6 million customers in the UK.
• In 2020, Cashplus processed more than 19 million transactions, demonstrating its established presence in the digital banking sector.
• Cashplus has supported over 500,000 businesses with their banking needs, including small and medium-sized enterprises.

Monzo

Monzo has gained significant popularity as a digital bank, known for its user-friendly app and attractive features. Here are some key advantages of using Monzo for business banking:

Pros

• Seamless user experience: Monzo’s intuitive app allows users to manage their business finances efficiently. The interface is user-friendly and provides real-time notifications for transactions, making it easier to stay on top of your finances.
• Flexible spending: Monzo offers a range of spending controls and budgeting features, allowing business owners to set spending limits, categorise expenses, and gain insights into their financial habits.
• Integrations: Monzo integrates with various accounting software and third-party tools, simplifying bookkeeping and streamlining business processes.
• Business tools: Monzo provides additional features such as invoice generation and tax calculations, which can be beneficial for freelancers and small businesses.

Cons

Despite its advantages, Monzo also has some drawbacks:

• Limited cash deposit options: As a digital bank, Monzo lacks physical branches, which means cash deposits can be challenging. Business owners who handle cash transactions frequently may find this limitation inconvenient.
• Limited business loan options: Monzo’s business loan offerings are relatively limited compared to traditional banks. If your business requires significant borrowing, alternative options may be more suitable.

Cashplus

Cashplus is another fintech company offering digital banking services tailored to businesses. Here are the pros of using Cashplus:

Pros

• Quick account opening: Cashplus offers a straightforward and speedy account opening process, allowing business owners to start banking without lengthy paperwork or credit checks.
• Cash deposit options: Unlike Monzo, Cashplus allows cash deposits through various PayPoint locations across the UK, making it more convenient for businesses dealing with cash transactions.
• Prepaid expense cards: Cashplus provides prepaid expense cards, allowing businesses to manage employee spending efficiently and control expenses.
• Credit builder: Cashplus offers a credit builder service, which can be valuable for businesses looking to establish or improve their credit history.

Cons

However, Cashplus also has some limitations:

• Limited integrations: Cashplus currently has limited integrations with third-party accounting software, which may hinder seamless bookkeeping and workflow automation for some businesses.
• Transaction fees: Cashplus charges transaction fees for certain activities, such as cash withdrawals and foreign currency spending. This can impact businesses with high transaction volumes or international operations.

Monzo vs Cashplus – Costs and other considerations

When comparing costs, it’s essential to evaluate the specific needs of your business.

Both Monzo and Cashplus offer competitive pricing, but the fee structures differ.

Monzo provides a free basic business account, while Cashplus offers tiered pricing plans with varying monthly fees, transaction fees, and additional charges for certain services.

Considerations such as customer support, security measures, and the overall financial health and stability of the banking provider are crucial factors when selecting a business bank account.

Reading customer reviews, researching their regulatory compliance, and assessing their financial standing are recommended steps to make an informed decision.

Monzo vs Cashplus – Verdict

In conclusion, Monzo and Cashplus offer attractive digital banking solutions for businesses.

Monzo shines with its seamless user experience, flexible spending controls, and extensive integrations, while Cashplus stands out with its cash deposit options, prepaid expense cards, and credit builder service.

When choosing between Monzo vs Cashplus for your business banking needs, it’s crucial to consider the specific requirements of your business, such as cash handling, transaction volumes, integrations, and credit building opportunities.

Carefully weigh the pros and cons outlined in this article, review the costs associated with each option, and evaluate additional factors like customer support and security.

By taking a comprehensive approach to assessing these considerations, you can make an informed decision that aligns with the unique needs and goals of your business.

Monzo vs Cashplus – FAQ

It’s important to note that the answers provided in this FAQ section are based on general information, and it’s always recommended to visit the respective websites or contact the providers directly for the most up-to-date and accurate details regarding their services and offerings.