When it launched in 2010, Metro Bank was the first new high street bank to be granted an FCA license in over 150 years. The world of business finance has changed a great deal in the intervening 13 years, especially with the rise of challenger banks like Mettle, Tide, and Monzo that do not rely on a brick-and-mortar presence, but is there still room for a rival to the traditional British banking giants?
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Does Metro Bank support business banking?
Metro Bank has a presence on the high street and online, and does accept business banking customers. You can manage your Metro Bank business account in person or online, using the website of the Apple or Android app.
If you wish to use bookkeeping software on your Metro Bank app, this bank offers a 25% discount on a Clearbooks subscription. Alternatively, your Metro Bank account can be linked to Xero, though you will accept responsibility for payment and upkeep of this subscription.
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Is my company eligible for a Metro Bank business account?
There are no minimum turnover limits in place for opening a Metro Bank business account.
Any sole trader or SME that brings in less than £2,000,000 per year can apply for a standard Business Account, assuming you have the relevant documentation that proves your citizenship and taxpayer status in the UK.
Like all banks, Metro Bank reserves the right to refuse an account application if you trade in a high risk industry or have a poor credit history.
What business banking accounts does Metro Bank offer?
Aside from a separate charity bank account for non-profit ventures, Metro Bank offers two types of business account.
| Metro business bank account type | What is it? |
|---|---|
| Business Bank Account | For sole traders or SMEs with a turnover below £2,000,000 per year. This account entitles you to apply for a business overdraft of up to £60,000, and provides 12 months of free access to Enterprise Nation for business support. |
| Commercial Current Account | Designed for businesses with a larger turnover above £2,000,000 per year. This account will be designated a dedicated Relationship Manager, and access to asset and invoice financing to manage cash flow if required. |
Metro Bank account holders can also apply for unsecured business loans for up to £25,000 and repayable over up to five years. You may be eligible to borrow more, but you’ll need to discuss this with an account manager. You’ll also be entitled to apply for a business credit card.
If you do substantial business overseas, you may also wish to consider a Foreign Currency Account. This will allow you to make deposits and send transfers in one of 14 different international currencies.
How do I set up a Metro Bank business account?
You can apply for a Metro Bank business account online, using the bank’s official website. The process should only take a few minutes, and you should get an answer within days once checks have been run on your business.
If you want a faster turnaround, make an appointment with your nearest branch of Metro Bank and take the necessary documentation with you. If your application is accepted you’ll walk away with a live business account and a debit card in your pocket.
What are the advantages of setting up a Metro Bank business account?
Metro Bank has a better reputation for customer service than most of the more traditional names in the financial sector, priding itself on its customer service when visiting a branch. You can also reach customer service telephone helplines 24/7 if you cannot make it to a physical location.
Some of the lending streams offered by Metro Bank offer competitive interest rates, assuming you meet the appropriate criteria for borrowing. Most credit lines will be offered a fixed rate APR or 7.9% for two years, though this could rise as high as 29.9% depending on your unique circumstances.
Metro Bank will not charge a penalty fee for any missed payments, so if your business runs into a short-term cash flow concern this will not be magnified with additional charges.
What are the drawbacks of setting up a Metro Bank business account?
There are only 76 branches of Metro Bank in the UK, and 74 of them are in England. Scotland and Northern Ireland are not covered by Metro Bank, and the two branches in Wales are both in Cardiff. You can still bank online and seek customer service support over the phone, but will not have the option of face-to-face transactions.
Metro Bank charges business customers a range of microtransaction fees. These are reduced if your balance remains above £6,000 throughout a calendar month, but can still start to add up. If you plan to frequently use a business debit card or have an array of deposits and payments entering and leaving your account, these can start add up.
Late in 2022, Metro Bank was fined by the FCA for publishing misleading information to investors. This will obviously be a substantial red flag for anybody trusting this institution with their business finances. Whether it was an oversight or an act of wilful deception, it’s not a good look.
What fees are involved with running a Metro Bank business account?
Fees are always a major consideration when deciding who to open a business bank account with. If you choose Metro Bank, these fees vary according to your balance.
If your account balance is below £6,000 at any point during a calendar month, you will pay a £6 account fee. This is waived if your balance remains above £6,000 for the full month.
If your account balance remains above £6,000, you can enjoy 30 free transactions per month. Once these 30 transactions are completed, or your balance drops below £6,000, you will pay 30p for each of these dealings:
- ATM withdrawals
- Debit card transactions
- Automated credits
- Cheque deposits or payments
- Bill payments
- Direct debits
Regardless of your balance, the following charges will also apply to a Metro Bank business account.
- 0.70% of any cash transaction (paid into your account, or withdrawn over the counter)
- 20p for any SEPA international payment, or £25 for any SWIFT international payment
What is Metro Bank’s reputation among business banking customers?
Metro Bank fares slightly better than most of the larger-scale UK banks when it comes to customer feedback. Over at TrustPilot, Metro Bank has a score of 2.5 from 5, drawn from a little over 4,000 reviews.
That is still considered Poor, so it’s hardly something Metro Bank will be keen to advertise, but it’s still a considerably higher score than NatWest, HSBC, RBS, or Virgin Money have managed to accumulate. As befits a score that sits right in the middle, most Metro Bank reviews are five stars or one star, with little room for nuance.
As always, we strongly suggest reading the reviews and assigned to Metro Bank – keeping in mind that almost all of these comments have been left by personal banking customers, not business users – and decide if they are enough to deter you from opening a Metro Bank account or assuage any concerns you may be harbouring.
Summary
Metro Bank is still a comparatively new kid on the block when it comes to high street banking, so it’s perhaps understandable that it is still encountering some teething problems. This bank sits somewhere between the approach taken by traditional and challenger banks.
If you are keen on managing your business finances with access to a branch and willing to pay the fees associated with this, but pine for a level of bespoke customer service the bigger names are sometimes reluctant to offer, Metro Bank may be worth investigating.