Lloyds Bank Business Banking provides current accounts for businesses of all sizes, with free banking periods for start-ups and integration with Xero and Sage accounting platforms. Lloyds is FCA-authorised and PRA-regulated. Business deposits are FSCS-protected up to £85,000 per eligible claimant. Lloyds participates in the voluntary Business Banking Switch Service for eligible SMEs (FCA, FSCS, UK Finance, 2026). |
Last reviewed: 09 Jun 2026 | Source: CMA Open Data API and Lloyds published rates
TL;DR: The Lloyds business bank account charges £7.00 per month after the 12 months free banking period. Electronic payments cost 27p per transaction. Cash deposits cost £0.90 per £100. FSCS deposit protection applies up to £85,000. Lloyds is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA registration number 119278).What is the Lloyds business bank account
The Lloyds business bank account is a business current account designed for UK-registered businesses, available to limited companies, sole traders, and partnerships. It provides the core infrastructure for business payments: receiving customer payments, making supplier payments, setting up direct debits and standing orders, and connecting to accounting software through open banking.
Lloyds is one of the nine designated banks under the Competition and Markets Authority (CMA) Open Banking Order, which requires it to publish standardised product data and provide open banking access to authorised third-party providers. The data on this page is sourced directly from the CMA Open Data API and Lloyds's published rate schedule.
At £7.00 per month after the free period, Lloyds carries the lowest ongoing monthly fee among CMA9 high-street banks. For businesses that need branch access but are cost-conscious after the introductory period ends, Lloyds represents the most cost-efficient CMA9 option.
Lloyds business account fees and charges
The table below sets out the fee structure for the Lloyds business bank account, sourced from the CMA Open Data API and Lloyds's published documentation as at 09 Jun 2026.
| Fee | Amount |
|---|---|
| Monthly account fee | £7.00/month |
| Introductory free period | 12 months |
| Electronic payment (per transaction) | 27p per transaction |
| Cash deposit fee (per £100) | £0.90 per £100 |
| Arranged overdraft EAR | 14.9% |
| Annual cost (fee only, after free period) | £84 per year after the free period |
Source: CMA Open Data API and https://www.lloydsbank.com/business/business-accounts.html. Data retrieved 09 Jun 2026. Fees are subject to change by Lloyds. Verify current rates directly with the provider before opening an account.
Approximately £84 per year after the free period, based on the monthly fee alone and excluding transaction charges - the lowest ongoing monthly fee among cma9 high-street banks. Transaction fees are additional and will vary depending on account activity. Businesses with high transaction volumes should calculate total monthly cost based on actual payment patterns rather than the headline monthly fee alone.
Who is the Lloyds business bank account for
The Lloyds business bank account is suited to established SMEs and limited companies that want the lowest ongoing monthly fee among CMA9 high-street banks, alongside full branch access, accounting software integration, and access to Lloyds business lending.
It may be less suitable for sole traders and micro-businesses that do not require branch banking, for whom permanently free digital accounts offer a lower total cost with comparable core functionality.
This assessment is based on fee structure, feature set, and the account's position within the broader UK business banking market. It does not constitute financial advice. Businesses should assess their own requirements before selecting a banking provider.
How to open a Lloyds business bank account
The Lloyds business bank account can be opened online. The application process typically takes 10 to 30 minutes to complete, with a decision usually received within 1 to 5 business days.
- Complete the Lloyds business account online application via the Lloyds Bank website
- Enter company registration number, directors' details, and business trading information
- Verify identity online using the Lloyds secure digital ID check process
- Lloyds reviews the application; decisions are typically received within 3 to 7 business days
- Account number and sort code are issued following approval
- Business debit card arrives by post within 5 to 7 working days; online banking is activated separately
Documents typically required include a valid photo ID (passport or UK driving licence) for all directors, proof of address dated within the last 3 months, and Companies House registration details for limited companies. Sole traders may be asked to provide evidence of business activity such as an HMRC Unique Taxpayer Reference.
Who gets approved for the Lloyds business bank account
UK-registered limited companies, sole traders, and partnerships. Lloyds applies a standard credit and KYC assessment. A 12-month or longer trading history is typically preferred for sole trader applications, although new limited companies are accepted. Hard credit checks are conducted only when an overdraft or business loan is requested.
Businesses declined by Lloyds due to credit history or sector restrictions may wish to consider specialist business accounts designed for businesses with adverse credit, or digital-first accounts with less stringent initial eligibility criteria.
Lloyds business account: overdraft and borrowing
Arranged overdraft facilities are available subject to credit assessment. The representative EAR is 14.9%. Lloyds also offers commercial mortgages, asset finance, and invoice finance through its business lending division.
Lloyds business account: cash handling
Cash deposits are accepted at Lloyds branches and Post Office counters. The 90p per £100 charge applies. Lloyds operates over 1,000 branch locations across the UK, providing broad coverage for cash-dependent businesses.
Lloyds business account: international payments
Lloyds supports international payments through its business banking platform. SWIFT and SEPA transfers are available. Foreign currency accounts can be arranged through its commercial banking team for businesses with ongoing multi-currency requirements.
Lloyds business account: accounting software integrations
The Lloyds business bank account supports open banking connections to major UK accounting software platforms, enabling automatic bank feed synchronisation. Supported integrations include Xero, QuickBooks, Sage, FreeAgent, and KashFlow. Connections operate under the CMA Open Banking Order, which requires Lloyds to provide read access to authorised third-party platforms.
Automatic bank feeds reduce manual data entry and improve reconciliation accuracy. Businesses using cloud accounting software should confirm current integration availability directly with their software provider before opening an account.
FSCS protection and regulatory status
Lloyds holds a full UK banking licence and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. FCA registration number: 119278.
Business deposits held with Lloyds are eligible for Financial Services Compensation Scheme (FSCS) protection up to £85,000 per legal entity per banking licence. This applies to deposits held directly with the bank. The FSCS limit applies per banking licence, not per account. Businesses holding deposits across multiple accounts with the same banking licence should be aware that the £85,000 limit applies in aggregate.
FSCS protection does not apply to money held with e-money institutions or payment institutions, even where those institutions use Lloyds as a banking partner. Businesses considering challenger bank alternatives should verify the regulatory structure of any account they are evaluating.
How Lloyds compares to other UK business bank accounts
The table below shows the Lloyds business bank account against challenger bank alternatives on headline business current account terms, based on published rates as at 09 Jun 2026.
| Provider | Monthly fee | Free period | E-payment | FSCS | Key difference |
|---|---|---|---|---|---|
| Lloyds | £7.00/month | 12 months | 27p per transaction | Yes | Full CMA9 bank. Branch access. |
| Starling Business | Free | Permanent | 30p | Yes | Permanently free. Digital only. FSCS protected. No branch access. |
| Monzo Business | £5.00/month | N/A | 20p | No | Higher monthly fee than Lloyds ongoing rate. Digital only. |
| Mettle (NatWest) | Free | Permanent | Free | No | Free digital account from a CMA9-owned bank. No transaction fees. |
| Allica Bank | Free | Permanent | 30p | Yes | Interest-bearing current account. FSCS protected. No branch access. |
Fee data sourced from provider published rates as at 09 Jun 2026. E-money institutions (Tide, Revolut) do not carry FSCS protection. Rates subject to change.
Recent changes to Lloyds business banking
Lloyds updated its Vantage rewards scheme for business current accounts in 2024, introducing tiered cashback on qualifying monthly spend above defined thresholds. The scheme is available to qualifying business current account holders meeting minimum monthly deposit requirements.
Customer ratings
Lloyds holds a Trustpilot score of 3.6 out of 5 across its customer base. The Lloyds mobile banking app carries an average rating of 4.4 out of 5 on the Apple App Store. These ratings reflect the full Lloyds customer base and are not specific to business account holders.
Business account-specific feedback on third-party review platforms tends to focus on the following themes: speed of account opening and onboarding, quality of digital banking tools for day-to-day transaction management, responsiveness of customer support for business-specific queries, and availability of branch services for cash-handling businesses.
Frequently asked questions about the Lloyds business bank account
What is the monthly fee for the Lloyds business bank account?
The Lloyds business bank account charges £7.00 per month. This fee does not apply during the 12 months free banking period available to new business customers.
Is the Lloyds business bank account FSCS protected?
Yes. Lloyds holds a full UK banking licence and is authorised by the Prudential Regulation Authority. Eligible business deposits are covered by the Financial Services Compensation Scheme up to £85,000 per legal entity. FCA registration number 119278.
How long does it take to open a Lloyds business bank account?
The online application takes approximately 10 to 30 minutes to complete. A decision is typically received within 1 to 5 business days. Account details are issued following approval, with the business debit card arriving by post within 5 to 7 working days.
Can a sole trader open a Lloyds business bank account?
Yes. Lloyds accepts sole trader applications. Sole traders need to provide proof of identity, proof of address, and details of their business activity. The standard 12 months free banking period applies to sole trader accounts.
What electronic payment fee does Lloyds charge?
The Lloyds business bank account charges 27p per electronic payment after the free banking period ends. This charge applies to Faster Payments and BACS transactions. CHAPS payments may carry a separate charge.
Does Lloyds offer a business overdraft?
Yes. An arranged overdraft facility is available subject to a separate credit application. The standard arranged overdraft EAR is 14.9%. Overdraft limits are assessed individually based on business financials and credit history.
What accounting software does the Lloyds business bank account connect to?
The Lloyds business bank account supports open banking connections to Xero, QuickBooks, Sage, FreeAgent, and KashFlow. These connections enable automatic bank feed synchronisation using the CMA Open Banking Order framework. Integration availability should be confirmed with the relevant software provider before opening an account.
Is the Lloyds business account right for your business type
Different business structures have different requirements from a current account. The following sets out how the Lloyds business bank account maps to common business types.
Limited companies: A separate business account is a legal requirement for limited companies. The Lloyds business bank account meets this requirement and provides the standard facilities needed: a unique sort code and account number, payment in and out, direct debit and standing order management, and online banking access. Directors should ensure all relevant individuals are added as signatories where required.
Sole traders: Sole traders are not legally required to use a separate business account, but keeping business and personal finances separate simplifies Self Assessment tax preparation and reduces the risk of breaching personal account terms and conditions that prohibit business use. The Lloyds business bank account is available to sole traders and provides a straightforward way to achieve this separation.
Partnerships: Partnerships typically require a joint account accessible to all partners. The Lloyds business bank account supports multi-signatory business accounts, though the specific arrangements should be confirmed with Lloyds at the point of application.
Startups and new businesses: The 12 months free banking period means new businesses pay no monthly fee during early trading, which reduces overhead during the period when cash flow is most constrained.
What to check before opening a Lloyds business account
Before opening the Lloyds business bank account, businesses should verify the following directly with Lloyds:
- Transaction volumes: Calculate the likely monthly transaction fee based on actual payment patterns. At 27p per electronic payment, a business making 100 payments per month will incur £27 in transaction charges on top of the monthly fee.
- Cash handling requirements: At £0.90 per £100, a business depositing £5,000 in cash per month will incur £45 in cash deposit charges.
- Accounting software: Confirm that the specific accounting platform used by the business is currently supported via open banking. Integration availability can change.
- Overdraft requirements: If an overdraft facility is required from day one, confirm availability and indicative limit before switching or opening the account.
- International payments: If the business makes regular international payments, verify the fee structure and whether a multi-currency account is available or whether a specialist provider would be more cost-effective.
Switching to the Lloyds business bank account
Businesses switching from another bank to the Lloyds business bank account can use the Current Account Switch Service (CASS). CASS is a free service that transfers all incoming and outgoing payments, direct debits, and standing orders to the new account within seven working days. The old account is closed automatically. CASS is available to businesses with an annual turnover of up to £6.5 million.
Before initiating a switch, businesses should obtain a full transaction history and statements from the existing provider, as historical data does not transfer to the new account. Any direct debits or standing orders no longer required should be cancelled before the switch date to avoid unnecessary transfers.
Lloyds is a participating bank in the Current Account Switch Service. The switch process is managed by the new bank once the application is approved.
Open banking and the CMA9 framework
The Lloyds business account operates within the CMA Open Banking framework. Under the Competition and Markets Authority Open Banking Order, Lloyds is required to publish standardised product data through the Open Data API and to provide read access to customer transaction data to authorised third-party providers through the Open Banking API.
This framework has two practical implications for business account holders. First, fee and product data is independently verifiable through the CMA Open Data API - the data on this page is sourced from that feed rather than from marketing materials. Second, businesses can connect their account to authorised accounting software, bookkeeping tools, and financial dashboards without sharing their banking credentials.
Open banking connections use read-only access. Third-party software connected via open banking cannot initiate payments or modify the account. Businesses can revoke access to any connected app at any time through the Lloyds online banking portal.
The nine designated banks under the CMA Order are Barclays, HSBC, NatWest, Lloyds, Santander, Nationwide, Allied Irish Bank, Bank of Ireland, and Danske Bank. All nine are required to maintain open banking infrastructure to the same technical standard.
Business savings accounts alongside the Lloyds business bank account
A business current account is designed for operational use. Surplus funds held in a current account typically earn little or no interest. Businesses maintaining a working capital buffer above immediate operating needs may benefit from holding surplus funds in a separate business savings account.
Lloyds offers business savings account products alongside its current account. Businesses maintaining a surplus above immediate operating needs should review the available savings rates and compare them against standalone savings providers before deciding where to hold reserves.
The Financial Services Compensation Scheme £85,000 limit applies per banking licence, not per account. Businesses holding both a current account and a savings account with Lloyds should be aware that both balances count toward the same £85,000 limit. Businesses holding larger reserves may wish to distribute deposits across multiple FCA-authorised institutions to maintain full FSCS coverage.
