Lloyds vs HSBC for business banking

Updated on 7 August 2023

When it comes to business banking, choosing the right financial institution is crucial for the success of your company. Lloyds vs HSBC are two prominent banks in the United Kingdom that offer comprehensive business banking solutions.

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In this article, we will compare the features, pros and cons, fees and charges, as well as unique and standout features of Lloyds and HSBC, helping you make an informed decision for your business.

Video: Choosing a business bank account

Lloyds Bank vs HSBC

Before diving into the details of each bank, let’s have a quick look at the key features offered by Lloyds and HSBC in the table below:

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FeaturesLloydsHSBC
Account TypesBusiness Current AccountsBusiness Banking Accounts
Online BankingYesYes
Mobile BankingYesYes
International BankingYesYes
Merchant ServicesYesYes
Cash ManagementYesYes
Business LoansYesYes
Customer Support24/7 Phone and Online24/7 Phone, Online, and In-Person
Lloyds Bank vs HSBC

Wallester Business
✓ Virtual & Physical Cards
✓ No Setup Fees
✓ No Monthly Fee
Pricing Trial period Contact

Revolut Business
✓ Business Current Account
✓ Award-Winning Mobile App
✓ Quick & Easy Application Process
Pricing Trial period Contact

Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
Pricing Trial period Contact

Card One Money
✓ No Credit Checks
✓ Simple Fees
✓ Up To 3.5% Cashback
Pricing Trial period Contact

ANNA Money
✓ Apply In 10 Minutes
✓ Bookkeeping & Payroll Tools
✓ User-Friendly Mobile App
Pricing Trial period Contact

HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
Pricing Trial period Contact

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

Lloyds is one of the largest retail and commercial banks in the UK, offering a wide range of business banking services. They have a strong presence across the country and provide dedicated support to businesses of all sizes.

Pros

  • Extensive network of branches and ATMs for convenient access.
  • Robust online and mobile banking platforms for seamless account management.
  • Competitive interest rates on business savings accounts.
  • Dedicated relationship managers for personalized assistance.
  • Easy integration with accounting software.

Cons

  • Some customers have reported slow response times from customer support.
  • Limited international presence compared to HSBC.
  • Higher fees for certain services.

Table of fees and charges

ServicesFees and Charges
Monthly Account Fee£5 – £20, depending on the account type
Transaction FeesVaries based on transaction type
Cash Deposit FeeUp to 2.5% of the deposit amount
International Payments£9 – £35 per transaction
Business LoansInterest rates and fees vary
Overdraft FacilitiesInterest rates and fees vary
Account Service Fee£2 – £5 per month, depending on account
Credit Card ProcessingMerchant service fees apply
Returned Payments£25 per instance
Cheque Book£5 – £10, depending on quantity
Duplicate Statements/Document Requests£5 per request
Lloyds Bank fees and charges

Unique and standout features

  • Lloyds offers a range of industry-specific banking solutions tailored to meet the unique needs of businesses.
  • They provide access to various funding options, including business loans and overdraft facilities.
  • Lloyds Merchant Services allow businesses to accept card payments and manage transactions efficiently.

HSBC

HSBC is a multinational bank with a strong presence in the UK and a global reach. They have extensive experience in serving businesses of all sizes, from startups to large corporations, and offer a comprehensive suite of business banking products and services.

Pros

  • Global presence and expertise, enabling businesses to operate internationally.
  • Advanced online and mobile banking platforms with robust security measures.
  • Flexible business account options to cater to different business needs.
  • Access to a wide range of business financing options.
  • Dedicated relationship managers for personalized support.

Cons

  • Some customers have reported challenges with the onboarding process.
  • Higher minimum balance requirements for certain accounts.
  • Limited branch network in some regions.

Table of fees and charges

ServicesFees and Charges
Monthly Account Fee£6 – £32, depending on the account type
Transaction FeesVaries based on transaction type
Cash Deposit FeeUp to 2% of the deposit amount
International Payments£4 – £35 per transaction
Business LoansInterest rates and fees vary
Overdraft FacilitiesInterest rates and fees vary
Account Service Fee£2 – £10 per month, depending on account
Credit Card ProcessingMerchant service fees apply
Returned Payments£30 per instance
Cheque Book£5 – £10, depending on quantity
Duplicate Statements/Document Requests£5 per request
HSBC fees and charges

Unique and standout features

  • HSBC provides comprehensive international banking services, including global cash management solutions and international trade support.
  • They offer specialized industry expertise and solutions tailored for sectors such as technology, healthcare, and professional services.
  • HSBCnet, their online banking platform, offers powerful tools for managing international business operations.

Conclusion – Lloyds vs HSBC

Choosing the right bank for your business banking needs is essential, and both Lloyds and HSBC are reputable options in the UK.

Lloyds stands out with its extensive branch network, industry expertise, and tailored banking solutions for businesses.

On the other hand, HSBC offers a global presence, advanced online banking platforms, and specialised international banking services.

When making a decision, it’s important to consider your specific business requirements, such as whether you need a strong domestic presence or international capabilities.

Additionally, comparing the fees and charges associated with the services you require will help you assess the financial implications of each bank.

Overall, Lloyds may be a better choice for businesses seeking localised support, a wide network of branches, and industry-specific solutions. On the other hand, HSBC offers a global outlook, advanced online banking platforms, and comprehensive international banking services, making it a suitable option for businesses with international operations or aspirations.

Before finalising your decision, it’s recommended to thoroughly review the official websites of both banks, speak to their representatives, and consider the specific needs and goals of your business.

FAQ

Can I open a business bank account with either Lloyds or HSBC online?

Yes, both Lloyds and HSBC offer online account opening services for business customers.

Are there any monthly maintenance fees for business bank accounts?

The fees and charges associated with business bank accounts vary depending on the type of account and services you require. It is advisable to refer to the official websites or contact the banks directly for detailed information.

Can I access my business accounts through mobile banking apps?

Yes, both Lloyds and HSBC provide mobile banking apps, allowing you to conveniently manage your business accounts on the go.

Do Lloyds and HSBC offer business loans?

Yes, both banks offer business loan options. However, the specific terms and eligibility criteria may vary. It is recommended to discuss your financing needs with the respective banks to find the most suitable solution.

Are there any transaction limits for international banking services?

The transaction limits for international banking services may vary depending on the type of account and services you use. It is best to consult with the banks directly to understand the specific limits and any associated fees.

Remember, selecting the right business banking partner is an important decision that can impact the growth and success of your company. Carefully consider the features, fees, and unique offerings of Lloyds and HSBC to make an informed choice that aligns with your business goals and requirements.

Reviewed by , Managing Director

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