When it comes to banking, businesses in the UK are spoilt for choice, with two dominant players vying for attention: NatWest vs Lloyds. Both institutions have a long history of serving businesses, offering a range of services designed to facilitate operations, growth, and stability.
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This article provides a detailed comparison of these two banking giants, enabling UK businesses to make an informed choice that best fits their needs.
NatWest vs Lloyds
| Features | NatWest | Lloyds |
|---|---|---|
| Business Current Account | Yes | Yes |
| Online Banking | Yes | Yes |
| Mobile App | Yes | Yes |
| Overdraft Facility | Yes | Yes |
| Business Credit Card | Yes | Yes |
| Business Loans | Yes | Yes |
| Business Savings Account | Yes | Yes |
| Invoice Financing | Yes | Yes |
| International Payments | Yes | Yes |
| Merchant Services | Yes | Yes |
| Business Insurance | Yes | Yes |
| Dedicated Relationship Manager | Yes | Yes |
| Financial Planning Services | Yes | Yes |
| Startup Package | Yes | Yes |
| 24/7 Customer Support | Yes | Yes |
| Cash Flow Forecasting Tools | Yes | No |
| Foreign Currency Accounts | Yes | Yes |
| Trade Finance Services | Yes | Yes |
| Business Learning Resources | Yes | Yes |
| Green Business Initiatives | Yes | Yes |
NatWest
With over 150 years of experience, NatWest stands as a pillar in the UK banking sector, reputed for delivering tailored services to support businesses of all sizes. NatWest’s commitment to innovation is evidenced by its wide array of online services and tools designed to simplify business banking.
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Pros and cons
Pros
- Comprehensive digital banking services, including a feature-rich mobile app and online platform
- Cash Flow Forecasting tools to help businesses manage their finances better
- Offers a strong portfolio of green business initiatives for environmentally conscious businesses
- Provides financial learning resources and advice to help businesses grow and develop
- Dedicated relationship manager available for personalised support and guidance
Cons
- Customer service experiences can be inconsistent, as reported by some users
- Some of their charges, especially for international transactions, can be high compared to other banks
- Branch network has been significantly reduced in recent years, which might impact businesses that prefer in-person banking
Table of fees and charges
Please note, the exact charges may vary depending on the business type and transaction. Always refer to the latest NatWest tariff guide for accurate details.
| Type of transaction | Fee |
|---|---|
| Monthly account fee | £5 |
| Electronic payments (in/out) | Free/25p |
| Cash payments (in/out) | 70p/60p per £100 |
| Cheques issued/paid in | 70p/60p |
| Overseas transaction fee | £15 |
Unique and standout features
NatWest offers a comprehensive suite of digital services that go beyond basic banking.
Its award-winning mobile app allows businesses to manage their accounts, payments, and even apply for services on the go.
Their cash flow forecasting tool is a standout feature, offering businesses critical insights to better manage finances.
Moreover, NatWest has a strong commitment to sustainable business practices, offering a range of green initiatives, including loans for green energy projects and carbon footprint calculators.
It also offers ‘Business Builder’, a free digital tool for businesses to learn, connect, and grow.
Lloyds Bank
Founded in 1765, Lloyds Bank has an extensive history in supporting UK businesses. Lloyds offers a vast range of services to meet the diverse needs of businesses, with a strong focus on customer service and relationship building.
Pros and cons
Pros
- Extensive network of branches, offering convenient access to services
- Solid online and mobile banking platforms with an extensive range of services
- Business mentoring and learning resources available to support business growth
- Strong commitment to supporting startups with dedicated packages
- Quick and straightforward account opening process
Cons
- Online banking system can sometimes experience downtimes and glitches
- Does not offer cash flow forecasting tools
- Some users report a less responsive customer service during peak hours
- International services can be expensive
Table of fees and charges
These are indicative charges, actual charges may vary. Always refer to the latest Lloyds tariff guide for accurate details.
| Type of transaction | Fee |
|---|---|
| Monthly account fee | £6.50 |
| Electronic payments (in/out) | Free/23p |
| Cash payments (in/out) | 65p/58p per £100 |
| Cheques issued/paid in | 65p/58p |
| Overseas transaction fee | £9.50 |
Unique and standout features
Lloyds offers a robust business mentorship program, providing businesses access to experienced mentors who can provide practical advice and support.
Additionally, Lloyds offers comprehensive startup packages to help new businesses get off the ground, including 12 months free business banking.
For international businesses, Lloyds provides a range of services, including foreign currency accounts and international payments.
Lloyds also shows commitment to sustainability through its green lending initiative, providing loans for environmentally-friendly projects.
Conclusion – NatWest vs Lloyds
Choosing between NatWest and Lloyds for business banking ultimately depends on your business needs and priorities.
Both banks offer a robust set of services with unique advantages.
If your business values advanced digital tools, cash flow forecasting, and sustainable initiatives, NatWest is an excellent choice.
If you prefer a bank with a vast branch network, business mentorship, and dedicated startup support, Lloyds stands out.
It’s essential to consider both the day-to-day operations and long-term goals of your business. Evaluate each bank’s offerings, charges, and customer service reviews to make an informed decision.
FAQ
Yes, both NatWest and Lloyds offer specific accounts for startups with beneficial features and discounts.
Both banks offer robust digital banking services, including mobile and online platforms. However, NatWest offers a wider range of digital tools, including cash flow forecasting.
Yes, both banks offer support for environmentally-friendly projects and initiatives, with a range of green business loans and services.
Yes, both banks offer services for international businesses, including foreign currency accounts and international payments. However, charges for these services can vary, so it’s recommended to check the respective tariff guides.
Both banks offer business credit cards with various features and benefits. The choice depends on your specific needs, such as reward preferences, credit limits, and APRs.
Yes, both NatWest and Lloyds participate in the Current Account Switch Service, making it easy to switch your business account to them.