Lloyds vs RBS for business banking

Updated on 7 August 2023

Choosing the right bank for your business is a significant decision, with potential impacts on your financial management, customer relations, and growth prospects. Two leading players in the UK business banking sector are Lloyds Bank vs RBS (Royal Bank of Scotland).

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Both have strong reputations and offer comprehensive services. However, there are notable differences that may influence your preference. This article will compare these two banking giants, focusing on their offerings for businesses.

Video: Choosing a business bank account

Lloyds vs RBS

FeatureLloyds BankRBS
Internet BankingOffers secure 24/7 internet banking via their online platformOffers internet banking services with additional cybersecurity measures
Mobile BankingMobile banking app available on iOS and Android devices, offering full suite of servicesMobile app available with features like invoice scanning and budget tracking
Overdraft FacilitiesOffers arranged and unarranged overdrafts with variable interest ratesOverdrafts available, with interest rates based on business assessment
Business Credit CardOffers a range of cards with varying benefits like Avios points and no annual fees for the first yearVariety of cards available, each tailored to different business needs and sizes
Business LoansOffers loans with fixed or variable rates for business expansion or equipment purchaseProvides both secured and unsecured business loans, including enterprise finance guarantee loans
Trade ServicesOffers services like letters of credit, documentary collections and guaranteesProvides international trade services including import/export letters of credit and trade finance
Invoice FinanceInvoice discounting and factoring services availableOffers invoice financing and discounting, and asset-based lending
Business InsuranceComprehensive range of business insurance products, including liability and professional indemnity insuranceRange of business insurance options, including business interruption and public liability insurance
Asset FinanceLeasing and Hire Purchase available for equipment and vehiclesOffers hire purchase, leasing, and refinancing options
International ServicesForeign exchange services, international payments and trade finance availableProvides international trade services, foreign exchange and multi-currency account options
Business Savings AccountOffers instant access, notice and fixed term savings accountsVariety of business savings accounts including instant access and fixed term accounts
Business Investment ProductsRange of investment options including unit trusts and bondsProvides different investment opportunities, tailored to business size and needs
Cash Management ServicesCash handling, payment and collection services, and liquidity management offeredProvides cash management including efficient payment solutions and cash flow optimisation
Merchant ServicesCard machines, online and phone payments, and point of sale finance offeredRange of merchant services including card terminals and secure online payment systems
Payroll ServicesOffers payroll solutions in collaboration with Ceridian and SageProvides cloud-based payroll solutions in association with FreeAgent
Dedicated Relationship ManagerEvery business customer is assigned a relationship managerDedicated relationship manager service provided based on the business size and requirements
24/7 Customer SupportProvides 24/7 customer service via phone and online chatOffers 24/7 customer support through various channels including live chat and phone
Financial AdviceOffers financial and growth advice tailored to your business sectorProvides financial advisory services including cash flow management and expansion planning
Digital Training and SupportLloyds Digital Academy provides free digital skills trainingProvides digital skills training and online resources for businesses
Tailored Solutions for Different SectorsSolutions tailored for sectors like agriculture, healthcare, manufacturing, etc.Offers sector-specific financial solutions, with expertise in healthcare, manufacturing, agriculture, etc.
Lloyds vs RBS

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Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
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ANNA Money
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✓ Bookkeeping & Payroll Tools
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HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
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Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected
Pricing Trial period Contact

Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
Pricing Trial period Contact

Monzo Business Banking
✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected
Pricing Trial period Contact

Virgin Money
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform
Pricing Trial period Contact

Lloyds Bank

With a history dating back to 1765, Lloyds Bank has a longstanding reputation as a strong choice for businesses of all sizes. They pride themselves on their digital banking services, excellent customer service, and tailored offerings for various sectors.

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Pros and cons

Pros

  • Lloyds offers a comprehensive range of services from traditional banking services to complex financial products and advice.
  • Lloyds is well-known for its efficient digital banking platform, making it easy for businesses to manage their finances.
  • The bank’s relationship managers are particularly praised for their responsiveness and expertise.
  • Their financial advice and training resources can be extremely beneficial for businesses looking to grow.

Cons

  • Some customers have reported that Lloyds’ fees can be higher than other banks.
  • While their online platform is robust, occasional technical glitches have been reported.
  • While their service is generally well-regarded, some customers report uneven service quality across different branches.

Table of fees and charges

Fee TypeAmount/Rate
Business Current Account£6.50 monthly fee
Electronic PaymentsFree
Cheque Payments£0.65 per cheque
Cash Payments0.6% of cash amount
Overdraft FacilityVariable
Business Credit Card£32 annual fee
Lloyds Bank fees and charges

Note: The fees and charges are subject to change and vary depending on the specific services and account types. Always verify with the bank for the most accurate information.

Unique and standout features

Lloyds has several unique features that set it apart:

  • Lloyds Digital Academy: This platform offers free digital skills training, which can be particularly useful for businesses looking to improve their digital capabilities.
  • Lloyds Bank Mentor Service: This service offers advice on topics like employment law and health & safety, helping businesses stay compliant.
  • Sustainable Finance: Lloyds offers tailored solutions to support sustainable businesses and projects, reflecting its commitment to environmental responsibility.

RBS

The Royal Bank of Scotland (RBS), established in 1727, has a longstanding tradition of serving businesses in the UK. RBS stands out with its focus on customer service, sector-specific solutions, and innovative banking technology.

Pros and cons

Pros

  • RBS offers a wide array of financial products suitable for businesses of all sizes and sectors.
  • RBS has a user-friendly mobile and online banking platform.
  • The bank is known for its proactive customer service, with dedicated relationship managers for business customers.
  • RBS offers a number of specialized financial solutions for different sectors, such as healthcare and agriculture.

Cons

  • RBS sometimes falls short in terms of speed, with some customers reporting delays in transactions.
  • While their customer service is generally praised, some customers have had negative experiences with service consistency.
  • Some customers have reported their business loan approval process to be more stringent and lengthy.

Table of fees and charges

Fee TypeAmount/Rate
Business Current Account£5 monthly fee
Electronic PaymentsFree
Cheque Payments£0.70 per cheque
Cash Payments0.65% of cash amount
Overdraft FacilityVariable
Business Credit Card£30 annual fee
RBS fees and charges

Note: The fees and charges are subject to change and vary depending on the specific services and account types. Always verify with the bank for the most accurate information.

Unique and standout features

RBS has several features that set it apart:

  • Entrepreneur Accelerator Hub: This is an innovative program providing mentorship, workspace, and networking opportunities for startups.
  • RBS Invoice Finance: RBS offers a robust invoice financing service, providing businesses with a flexible way to manage cash flow.
  • Sector Expertise: RBS has dedicated teams for sectors like agriculture, healthcare, and real estate, providing expert advice and tailored solutions.

Conclusion – Lloyds Bank vs RBS

Both Lloyds and RBS provide comprehensive business banking services with a suite of products and features designed to serve businesses of all sizes.

While both banks have their unique strengths, your choice should ultimately depend on your specific needs, preferences, and business goals.

For example, if your business could benefit from digital training resources, Lloyds may be the better choice with its Digital Academy.

However, if you are an entrepreneur looking for robust start-up support, RBS’s Entrepreneur Accelerator Hub might sway your decision in their favour.

FAQ

Do Lloyds and RBS offer free business banking?

While both banks offer business accounts, they typically come with a monthly fee. However, they often provide an initial period of free banking for new businesses.

Do both banks offer dedicated relationship managers for businesses?

Yes, both Lloyds and RBS provide dedicated relationship managers to help manage your business finances.

Can I apply for a business bank account online with both banks?

Yes, both banks provide the option to apply for a business bank account online.

Do both banks offer tailored solutions for different sectors?

Yes, both Lloyds and RBS provide sector-specific solutions, with a focus on sectors such as agriculture, healthcare, and real estate.

What kind of support do the banks provide for startups?

Both banks provide support for startups, with Lloyds offering a range of digital tools and resources, and RBS providing a comprehensive Entrepreneur Accelerator Hub.

Are the banks’ mobile and online platforms secure?

Yes, both Lloyds and RBS use advanced security measures to ensure the safety of their digital banking platforms. Always remember to follow the best practices for online security.

Do the banks offer international banking services?

Yes, both banks provide a suite of international banking services to support businesses with overseas operations or transactions.

Reviewed by , Managing Director

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