Lloyds vs Metro Bank for business banking

Updated on 7 August 2023

The landscape of business banking in the UK is diverse and complex. Two leading players in this field, Lloyds Bank vs Metro Bank, offer unique benefits to their customers. Both offer a plethora of services catered towards businesses of different sizes and industries, with varying fee structures and unique offerings.

Featured pro tools

 
Quick, easy, no commitment!

This article will help you delve into the particulars, making it easier for you to decide which bank aligns best with your business needs.

Video: Choosing a business bank account

Lloyds vs Metro Bank

FeaturesLloydsMetro Bank
Online BankingYesYes
Mobile AppYesYes
24/7 Customer SupportYesYes
Free Business Banking Period6 months12 months
Overdraft FacilityYesYes
Business Credit CardYesYes
International ServicesYesYes
Cash Deposit Machine AccessLimitedWide
Business Savings AccountYesYes
Business LoansYesYes
Business Manager AccessYesYes
Cashback on Card PurchasesYesNo
Invoice FinancingYesNo
Business MentoringYesYes
Asset FinanceYesYes
Trade FinanceYesYes
Currency Exchange ServiceYesYes
Insurance ProductsYesNo
Switching ServiceYesYes
Branch NetworkNationwideLimited
Lloyds vs Metro Bank

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 Bank

Lloyds Bank is one of the UK’s oldest and largest financial institutions, with a deep-rooted history dating back to the 18th century. They have a comprehensive range of business banking services tailored to meet a variety of needs.

Pipedrive logo The CRM platform to grow your business
  • Great for entrepreneurs
  • Powerful data analytics
  • Manage sales and data
Rippling logo Manage all your employee data
  • Run in 90 seconds
  • 100% error-free
  • Automatic tx filing
Wix logo Powerful web builder and advanced business tools
  • Great for startups
  • Powerful web page builder
  • E-commerce available
Planable logo Supercharged content planning
  • Great for marketing
  • Better than lists or sheets
  • Manage social media
Webador logo Create a new website in 10 minutes. Easy.
  • Launch your website fast
  • Powerful data intuitive
  • No coding skills needed

Pros and cons

Pros

  • Lloyds Bank offers a wide range of banking solutions and additional business services, including business loans, asset finance, invoice financing, and insurance products.
  • Their digital banking solutions, both online and mobile, are highly rated for their user-friendly interface and the extensive range of services available.
  • Lloyds provides access to dedicated business managers and business mentoring services, offering valuable expertise and guidance.

Cons

  • Their free banking period is relatively short, lasting only six months.
  • Limited access to cash deposit machines compared to Metro Bank.
  • Some customers have reported challenges with customer service, specifically in terms of response times.

Fees and charges

ServiceFee
Electronic Payments£0.35 per transaction
Automated Payments InFree
Cash Withdrawals0.7% of amount withdrawn
Cheque Issuance£0.65 per cheque
Business Credit Card Annual£32 per card
Overdraft FacilitySubject to arrangement
Lloyds Bank fees and charges

Unique and standout features

Lloyds Bank has an impressive business resource hub, offering a wealth of information, guides, and tools to help businesses grow and navigate challenges.

Additionally, they provide a cashback scheme on card purchases, a feature not found with Metro Bank.

Invoice financing, another standout feature, can provide businesses with advance payments based on their outstanding invoices, improving cash flow.

Moreover, their broad insurance product offerings cater to different business needs, providing an extra layer of financial security.

Metro Bank

Metro Bank, founded in 2010, is a relative newcomer to the banking scene. Despite this, they have made a strong impact with their innovative, customer-focused approach, and extended branch hours.

Pros and cons

Pros

  • Metro Bank offers an extended 12-month free banking period, double that of Lloyds.
  • They offer widespread access to cash deposit machines.
  • Metro Bank has excellent customer service ratings, and they pride themselves on a more personalised approach.

Cons

  • Metro Bank’s branch network is limited primarily to the South East of England.
  • They do not offer invoice financing or cashback on card purchases.
  • Metro Bank lacks a range of insurance products that businesses may find useful.

Fees and charges

ServiceFee
Electronic Payments£0.30 per transaction
Automated Payments InFree
Cash Withdrawals0.5% of amount withdrawn
Cheque Issuance£0.70 per cheque
Business Credit Card Annual£39 per card
Overdraft FacilitySubject to arrangement
Metro Bank fees and charges

Unique and standout features

Metro Bank’s branches, famously open seven days a week and with extended weekday hours, offer a convenience factor not seen in many traditional banks.

They also offer a ‘local business manager’ in branches, which gives customers a personal point of contact.

Metro Bank’s business accounts come with free access to the award-winning FreeAgent accountancy software, which can save businesses money and time on bookkeeping.

Conclusion – Lloyds vs Metro Bank

When comparing Lloyds and Metro Bank, it’s clear that both banks have their unique strengths and weaknesses.

Lloyds, being the more established bank, offers a wide variety of business services, including invoice financing and insurance products.

In contrast, Metro Bank, with its extended free banking period, extended branch hours, and personalised service, offers a fresh approach to banking.

Ultimately, the choice between the two banks depends on your specific business needs and preferences.

It would be wise to consider factors such as proximity to branches, online banking experience, customer service ratings, and specific services offered, before deciding.

FAQ

Which bank has a longer free banking period?

Metro Bank offers a longer free banking period of 12 months compared to Lloyds Bank’s 6 months.

Which bank offers better digital banking solutions?

Both banks offer robust digital banking solutions. User experience might vary, so it’s best to explore both platforms before deciding.

Does either bank offer business mentoring?

Yes, both Lloyds Bank and Metro Bank offer business mentoring services.

What kind of businesses do these banks cater to?

Both banks cater to businesses of all sizes, from sole traders and startups to large corporations.

Which bank has better customer service?

While both banks strive to offer high-quality customer service, Metro Bank tends to receive higher ratings for its personalized approach.

Do both banks offer insurance products?

No, only Lloyds Bank offers a range of insurance products for businesses.

Which bank has more branches?

Lloyds Bank has a wider branch network nationwide, while Metro Bank’s branches are primarily in the South East of England.

Reviewed by , Managing Director

Compare ⓘ