Choosing the right bank for your business can have a significant impact on its operations and growth. It is therefore crucial to make an informed decision that aligns with your company’s needs. In the UK, two leading banks stand out for business banking: Barclays vs Lloyds.
This article compares these two institutions, looking at their unique features, pros and cons, fees and charges, and more to help you make the right choice.
Barclays vs Lloyds
| Features | Barclays | Lloyds |
|---|---|---|
| Online banking | Yes | Yes |
| Mobile banking | Yes | Yes |
| Business debit card | Yes | Yes |
| Interest on business account | Yes | Yes |
| Overdraft facility | Yes | Yes |
| Contactless payments | Yes | Yes |
| Currency accounts | Yes | Yes |
| Free banking period | Yes | Yes |
| 24/7 customer support | Yes | Yes |
| Business loans | Yes | Yes |
| Business credit card | Yes | Yes |
| Business savings account | Yes | Yes |
| Invoice finance | Yes | Yes |
| International payments | Yes | Yes |
| Cash management services | Yes | Yes |
| Insurance services | Yes | Yes |
| Pensions and investments | Yes | Yes |
| Financial and business advice | Yes | Yes |
| Business mortgage | Yes | Yes |
| Trade finance | Yes | Yes |
| Merchant services | Yes | Yes |
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 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
Barclays
Barclays Bank is a long-established institution with a history dating back to 1690. It is renowned for its commitment to innovative banking solutions that are tailored to meet the needs of businesses across all sectors.
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Pros and cons
Pros
- Comprehensive digital banking: Barclays offers robust online and mobile banking platforms that are feature-rich, user-friendly, and secure.
- Innovative solutions: Barclays regularly introduces new technology-based solutions for business customers, such as its SmartBusiness Dashboard and Barclays Pingit.
- Diverse account types: Businesses can choose from a range of accounts to suit their specific needs.
- Global presence: Barclays is ideal for businesses with international operations, thanks to its extensive global network.
Cons
- Limited physical presence: Although Barclays has an extensive network, its physical branch count has decreased in recent years.
- Mixed customer service reviews: While many praise Barclays for its service, others have had less positive experiences.
- Potentially high fees: After the initial free banking period, some businesses may find the fees relatively high.
Table of fees and charges
Please note that fees may vary based on business size, transaction volumes, and specific account types.
| Services | Barclays Fees |
|---|---|
| Monthly Account Fee | £6.00 |
| Electronic Payments (in/out) | £0.35 |
| Cash Payments (in/out) | 0.60% of value |
| Cheque Payments (in/out) | £0.65 |
| International Payments | £15 – £40 |
Unique and standout features
Barclays stands out in its commitment to digital innovation. Its SmartBusiness Dashboard, for instance, allows businesses to monitor their performance in real-time, integrating data from various sources, including bank accounts and social media.
The Barclays Pingit app provides a quick and easy way to make and receive payments using a mobile phone. Barclays also prioritises sustainability, offering ‘Green Loans’ to businesses investing in eco-friendly projects.
Lloyds
Lloyds Bank, founded in 1765, is another titan of the UK banking sector. Known for its wide range of products and services, Lloyds is a popular choice for businesses of all sizes.
Pros and cons
Pros
- Wide range of services: Lloyds offers a comprehensive suite of banking services, including specialised sector expertise for industries such as agriculture and healthcare.
- Strong customer service: Lloyds is generally praised for its customer service, both online and offline.
- Free business toolbox: Lloyds provides a range of free resources to support businesses, including free accounting software.
Cons
- Less innovative: Lloyds may not be the best choice for those looking for cutting-edge digital services.
- Limited international presence: While Lloyds is excellent for domestic businesses, those with significant international operations might prefer a bank with a wider global footprint.
Table of fees and charges
Please note that fees may vary based on business size, transaction volumes, and specific account types.
| Services | Lloyds Fees |
|---|---|
| Monthly Account Fee | £7.00 |
| Electronic Payments (in/out) | £0.30 |
| Cash Payments (in/out) | 0.50% of value |
| Cheque Payments (in/out) | £0.65 |
| International Payments | £9.50 – £30 |
Unique and standout features
One of the standout features of Lloyds is the extensive support it provides to businesses. It offers a wealth of resources, from online guides to networking events and mentoring schemes.
The free Business ToolBox that Lloyds offers is a valuable addition for new businesses, including a range of useful tools like website building and online accounting software.
Conclusion – Barclays vs Lloyds
Both Barclays and Lloyds offer extensive services for business banking.
Your choice between the two depends largely on your specific needs.
If you’re looking for innovative digital solutions and have a significant international footprint, Barclays might be more suitable.
If you value high-quality customer service and a broad range of free resources, Lloyds could be the better choice.
FAQ
Both banks offer a free banking period for new businesses, but the duration varies. It’s best to contact the banks directly for current offers.
Both banks offer tailored solutions for small businesses. The choice would depend on the specific needs of the business.
Yes, both Barclays and Lloyds offer a switching service which makes the process simpler.
Barclays, with its wider global footprint, may be more suitable for businesses with substantial international operations.
Yes, both Barclays and Lloyds offer a range of financing options, including loans, credit cards, and asset financing.
Yes, both banks offer sector-specific services. For example, Lloyds has expertise in agriculture and healthcare, while Barclays offers tailored services for sectors like retail and manufacturing.