Monzo – business banking analysis and reviews

Last updated on 10 August 2023

Monzo is one of the most celebrated challenger bank accounts on the market, created by former staffers at the rival Starling Bank. But is a Monzo business account a good choice?

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While Monzo does not offer lending streams to business customers, this bank is widely revered for the extensive features provided by its affordable Monzo Pro pricing structure, as well as excellent customer service that has led to a stellar reputation online.

If you are looking for a challenger banking app that offers a little more than just the basics but would prefer to avoid eye-watering fees, this award-winning app is worthy of consideration.

Video: Getting started with business bank accounts

Monzo business banking services

Pros and cons of Monzo for business services

Pros of MonzoCons of Monzo
User-friendly app No lending streams for business accounts
6 months free access to Xero Monzo Pro costs £5 per month
FSCS protected Cannot accept payments in foreign currency
Excellent online reviews
Pros and cons of Monzo business banking
Monzo online business banking

Monzo business current accounts

Monzo offers two pricing tiers for business current account holders. Both these accounts are only for GBP£ transactions – Monzo will not provide an IBAN and SWIFT code. You can, however, use a desktop computer as well as an app to access your Monzo account.

Monzo Lite

This is the free version of the app. You will enjoy access to a business current account that can send or receive payments at no cost (including card payments,) and a business debit card linked to your Monzo account balance.

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Monzo Pro

Upgrade to Monzo Pro to unlock all the features this bank has to offer. You will be charged £5 per month, but this is a price worth paying. Monzo Pro customers enjoy six months free access to the bookkeeping software Xero, virtual debit cards so you will not need to carry plastic, the ability to automatically transfer a percentage of your business income to a tax pot to save for HMRC bills, and administrative features such as raising invoices within the app.

Business overdrafts

Not available through Monzo. See best business overdrafts.

Business savings accounts

Not available through Monzo. See best business savings accounts.

Monzo at a glance

Phone number0800 802 1281
App downloadsiOS; Android
Websitewww.monzo.com/i/business
Number of branchesN/A – Monzo is an online-only challenger bank
FSCS protected?Yes
Founded2015
Key information

Other business finance products

Monzo does not offer additional products to business customers. Loans and overdrafts are only available to personal account holders.

Monzo business banking reviews

What are other business banking customers saying about Monzo?

Review platformScoreNumber of votes
TrustPilot4.4/525,544
FeefoNot reviewedN/A
Reviews.co.ukNot reviewedN/A
Smart Money People4.93/59,932
Which?Not reviewedN/A
Average score4.8/535,476
Monzo business banking reviews and ratings

Monzo business eligibility criteria

Monzo is quite flexible about who can open a business account, within reason. As long as you are a sole trader or SME owner aged 18 or over, and based in the UK, your application will be approved unless you trade in a high-risk industry.

Monzo business finance alternatives

Monzo is one of the leading lights in the realm of challenger accounts, but in the modern era of business finance, it is just one of many. Tide, Mettle, Countingup and of course Starling Bank are all viable alternatives.

Other considerations

Monzo was awarded the titles of Best Banking App and Best British Bank at the prestigious British Banking Awards in 2022.

FAQ

Is Monzo a proper bank?

Yes, Monzo is a properly regulated bank in the UK. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Monzo holds your money in secure accounts at major banks and it uses modern technology to make your banking experience as smooth, safe and convenient as possible.

How to open a Monzo business account?

Opening a Monzo business account is straightforward. All you need to do is create an account on the Monzo website and answer some simple questions about your business. You’ll then be asked for proof of identity and addresses, as well as details about the people who will run the account. After that, you’re ready to start using your new Monzo business account.

What fees does Monzo charge?

Monzo does not charge any fees for its standard products. However, there are some additional services which may incur a fee. For example, using your Monzo card abroad will incur a 3% foreign exchange fee and transferring money internationally will cost £3 per transfer. There may also be other fees applicable to certain services, such as the interchange fee for using a debit card.

What are the benefits of using Monzo?

Monzo offers lots of great features to make your banking experience easier and more secure. These include instant notifications, budgeting tools and insights into your spending habits. The app also makes it easy to send money to friends or family using just their phone number.

What services does Monzo offer to businesses?

Monzo offers a range of business banking services, including integrated accounting software, invoicing tools and payment processing. It also provides access to capital and treasury management tools, as well as business credit cards. Additionally, Monzo can help businesses manage their cashflow with real-time insights into spending habits and access to financial advice.

What types of payments does Monzo accept?

Monzo accepts payments from Visa, Mastercard and American Express debit and credit cards, as well as Apple Pay, Google Pay, PayPal and other popular payment methods. It also supports direct transfers between bank accounts for faster payments. Additionally, customers can use Monzo’s Card Reader to process chip-and-pin card payments in store.

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Reviewed by , Managing Director

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