Monzo Business Account Review In 2024 [Trustworthy Judgments]

Updated On: 05/25/2023
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Welcome to our Monzo Business Account review for April 2023. In today's digital age, having a reliable and efficient banking solution for your business is essential. Monzo is a popular challenger bank that has been making waves in the banking industry for a few years now.

They offer a range of innovative financial products, including a business account that promises to simplify your banking needs. As more businesses turn to online banking, we decided to take a closer look at Monzo's business account and give you an in-depth review of its features, benefits, and drawbacks.

Whether you're a small business owner or a freelancer, it's crucial to choose the right banking partner for your needs. So, join us as we explore Monzo's business account and help you make an informed decision.

About Monzo

About Monzo

Monzo is a UK-based digital bank that provides financial services through a mobile app. It was founded in 2015 and has grown rapidly in popularity, especially among younger customers who are looking for an alternative to traditional banks.

Monzo offers a range of banking services, including current accounts, savings accounts, and loans, all managed through its mobile app. It also offers a prepaid debit card, which can be used to withdraw cash from ATMs and make purchases both in the UK and abroad.

One of Monzo's key features is its budgeting tools, which allow customers to track their spending and set savings goals. The app also provides real-time notifications and alerts for transactions, making it easy for customers to stay on top of their finances.

About Monzo Business Account

About Monzo Business Account

Monzo, a UK-based digital bank, launched its business accounts in 2020 to provide a more detailed analysis of spending habits for its users. The business account holders can benefit from insights into the spending habits of Monzo's users, which can help them manage their finances more efficiently.

The Monzo Business Account comes in two versions: Monzo Business Lite, which is free, and Monzo Business Pro, which is a paid version with more features. The bank's mission is to provide a fair and transparent alternative to traditional banking, making it a popular choice among individuals and businesses alike.

With its innovative approach and user-friendly platform, Monzo Business Account has quickly become one of the most sought-after digital banking solutions in the market.

Monzo Business Account Features

Monzo Business Business Account Features

Monzo Business Account and Monzo Business Pro have received positive reviews for offering a range of services to help small business owners manage their finances effectively. If you are considering using either of these platforms, it may be worth checking out a Monzo Business Account review to get an idea of how other users have found the service. 

  1. Customer Support and Security Measures: Both platforms offer 24/7 customer support and have security measures in place to protect your account against fraud and unauthorized access. This provides added peace of mind and ensures that you have access to assistance whenever you need it.
  2. FSCS Protection: Both Monzo Business Account and Monzo Business Pro offer FSCS protection, which means that your funds are protected by up to £85,000 in case of any bank failure. This provides peace of mind and ensures that your money is safe and secure.
  3. Cash/cheque Deposit through PayPoint: Both platforms offer the ability to deposit cash/cheques using PayPoint. This service is available at thousands of locations across the UK, making it easy for you to deposit money into your account without having to visit a branch.
  4. No Overdraft Facilities: Neither Monzo Business Account nor Monzo Business Pro offers overdraft facilities. This means that you cannot spend more than what is available in your account, which can help you avoid unnecessary debt and fees.
  5. Switching to Monzo Business Bank: Both Monzo Business Account and Monzo Business Pro offer a quick and seamless process to switch your business account to Monzo. This service is available to businesses of all sizes, and it makes it easy for you to switch your account without any downtime or disruption.
  6. Payment Scheduling and Centralized Payments: Both platforms provide the facility to schedule payments and manage centralized payments within one app. This feature allows you to manage your business finances more efficiently and saves you time and effort.

Monzo Business Lite

The Monzo Basic Business Account is a flexible and easy-to-use financial service that small business owners can use. Here are the main things that make the Monzo Business Account Lite a good choice for business owners.

  • Online card payment: Stripe is a popular way to pay online, and Monzo Business Account Lite can connect to it. This lets you take payments from credit cards on your website or app. This makes it easier to pay and less likely that someone will try to steal your money.
  • Instantaneous and free bank transfers within the UK: With the Monzo Business Account Lite, you can send money right away and for free to any UK bank account. With this feature, you can pay your suppliers, employees, and other business costs quickly and easily.
  • International transfers to 70+ countries: You can use Wise to send money to more than 70 countries from your Monzo Business Account Lite. This feature offers competitive exchange rates and low fees, which makes it a cheap way to pay suppliers or receive payments from customers in other countries.
  • Physical business debit card: The Monzo Business Account Lite comes with a physical business debit card that can be used to make purchases and get cash anywhere Mastercard is accepted. You can use the card to pay for business expenses and keep track of how much you've spent.
  • Payment links for customers: With the Monzo Business Account Lite, you can create payment links and send them to your customers by email, text, or social media. The customer can then use the link to pay for your goods or services quickly and securely.
  • All-day-round customer support: With Monzo Business Account Lite, you can get help at any time of the day or night with any problems or questions you have about your account. You can talk to the support team by phone, chat, or email.
  • Apple Pay and Google Pay: The Monzo Business Account Lite works with both Apple Pay and Google Pay, which makes it easy to buy things with your phone. With this feature, making transactions while you're on the go is easy and safe.
  • Pots: With the Monzo Business Account Lite, you can set up "Pots" to put your money into different groups. This feature helps you keep track of your spending and make sure that each category has enough money.
  • Access through web and mobile: You can access your Monzo Business Account Lite from anywhere and at any time by using the web or a mobile app. You can manage your account, see your transactions, and keep track of how much you're spending with this feature.
  • Freeze and unfreeze card: You can immediately freeze your Monzo Business Account Lite debit card with the mobile app if you lose it or think someone else might be using it. You can unfreeze it once you find the card or order a new one. This feature adds an extra layer of security to your business account.
  • Digital receipts: With the Monzo Business Account Lite, all of your transactions will create digital receipts. This will help you keep track of your spending and make it easier for you to do your taxes. You can also add notes to your transactions to provide more information about what happened.

Monzo Business Pro:

The Monzo Business Pro account is a great choice for larger businesses. Here are the main features of the Monzo Business Pro account that make it stand out.

  1. Built-in invoicing system: Monzo Business Pro comes with a built-in invoicing system that allows you to create and send invoices to your customers. This feature simplifies the invoicing process and provides automatic updates when customers make payments.
  2. Virtual Cards: Monzo Business Pro allows you to create virtual cards for each "pot" in your account. This feature enables you to keep track of your spending and ensures that you have enough money allocated to each category.
  3. Integration with accounting software: Monzo Business Pro integrates with popular accounting software like Quickbooks, Xero, and FreeAgent. This feature provides an enhanced business toolkit, enabling you to manage your finances more efficiently and streamline your accounting processes.
  4. Tax Pot: One of the standout features of Monzo Business Pro is its ability to automatically allocate funds to a "tax pot." This feature ensures that you have enough money set aside to pay your taxes and helps you avoid any nasty surprises at the end of the financial year.
  5. Multi-user access: Monzo Business Pro allows multi-user access for limited companies, enabling you to share your account with other members of your team. This feature provides increased flexibility and enables you to delegate tasks more efficiently.
  6. Discounts on Xero subscriptions: Monzo Business Pro offers discounts on Xero subscriptions, a cloud-based accounting software that enables you to manage your finances, send invoices, and track payments. This feature provides significant cost savings for businesses that use Xero.

Card Service Of Monzo Business Account

Card Service Of Monzo Business Account

Monzo Business Account provides a range of card services to help small businesses manage their finances effectively. Here are some of the key features of the Monzo Business Account card:

  • Powered by Mastercard: Monzo's debit cards are powered by Mastercard, which means they can be used anywhere Mastercard is accepted. This provides businesses with greater flexibility and convenience when it comes to making payments and managing expenses.
  • GBP Denomination: Monzo Business Account cards are denominated in GBP only. This means that businesses can make payments in GBP without having to worry about currency conversion fees or exchange rates.
  • Automatic Archiving and Categorization: Spending with Monzo Business Account cards is automatically archived and categorized into different categories such as bills, charity, groceries, family, etc. This feature helps businesses keep track of their spending and manage their finances more effectively.
  • Easy Modification of Expenses: If an expense gets mislabeled, it is easy to modify it within the app. This allows businesses to ensure that their spending is correctly categorized and recorded.
  • Physical and Virtual Cards: Monzo Business Account Lite comes with one physical card (available in pebble grey or slate grey color), while Monzo Business Account Premium comes with virtual cards. These virtual cards can be linked to different pots, making it easier for businesses to manage their spending.
  • Free ATM Withdrawals in the UK: Monzo Business Account cards come with free ATM withdrawals and without limits in the UK. This allows businesses to access their funds easily and conveniently.
  • Overseas ATM Withdrawal Fees: There are fees attached to overseas ATM withdrawals. These fees vary depending on the location of the ATM and the type of account you have. It is important for businesses to check the fees before making any overseas withdrawals.

Fees Associated With Monzo Business Account

Fees Associated With Monzo Business Account

Monzo Business Account comes with a range of fees, depending on the type of account and the services chosen. Here are some of the key fees associated with the Monzo Business Account:

Monthly Fees:

  • Business Lite Account: The account is free of charge.
  • Business Pro Account: The account costs £5 per month.

Fees for Accepting Online Card Payments Through Stripe:

  • UK cards: 1.4%
  • EEA cards: 2.5%
  • Cards from any other place (including Google and Apple Pay): 2.9%

(There is also a fixed fee of £0.20 per transaction, plus an additional percentage depending on the location of the card.)

Card Fees:

Issuing a Monzo debit card is free of charge. However, there are fees associated with overseas ATM withdrawals:

  • Overseas withdrawal limits: £200 for free every 30 days
  • Additional overseas withdrawal: 3% of the amount withdrawn

Payments:

  • Easy Bank Transfer fee is free until 2024.
  • Domestic Bank Transfer is completely free in the UK only.

It is worth noting that Monzo Business Account may also charge other fees, such as for bounced payments or requesting paper statements. Businesses should carefully review the fee schedule and terms and conditions before opening an account to understand the complete fee structure.

Security Provided By Monzo Business Account

Security Provided By Monzo Business Account

While going through the Monzo Business Account review, it is worth noting that the company takes security very seriously. The service requires two-factor authentication for logging in and making payments, ensuring that only authorized users have access to the account.

Customers can also set a PIN code to protect their Monzo Business Account on their mobile devices. Additionally, the service allows customers to freeze and unfreeze their business debit card from the mobile app, preventing unauthorized use of the card.

To help customers monitor their accounts, Monzo provides instant notifications for every transaction made on the account. This feature allows customers to stay on top of their account activity and quickly identify any suspicious transactions.

Monzo also encrypts customers' data to protect it from unauthorized access, providing an additional layer of security.

Finally, Monzo Business Account complies with regulatory requirements to prevent fraud and money laundering. This ensures that the service is operating with the highest standards of security and compliance. Overall, Monzo Business Account provides robust security measures to ensure customers' financial information is safe and secure.

How To Apply For A Monzo Business Account

Here is an overview of the process to apply for a Monzo Business Account:

  • After downloading the Monzo app, interested parties can begin the registration process by creating a new account.
  • Next, they will be prompted to choose the type of account they wish to open, either Monzo Business or Monzo Business Pro.
  • The user will then be asked to provide basic information about the business, including its name, address, and registration number.
  • Proof of business address, company name/number, fax number, and a valid photo ID are also required to complete the application process.
  • Monzo may categorize the business based on the provided information and may ask additional questions related to the industry type, volume of activity, tax ID, and address.
  • Beneficial Owners (PSCs) associated with the business must also be registered with Monzo and provide their country of residence, date of birth, and email address.
  • Monzo will conduct necessary checks on the information provided, and the account opening process usually takes between 1 to 4 weeks.

Eligibility To Open A Monzo Business Account

Eligibility To Open A Monzo Business Account

In order to open a Monzo Business Account, there are several eligibility criteria that must be met. These include:

Business Type: The Monzo Business Account is available for companies, sole traders, and active limited companies based in the UK. This means that if you are a freelancer or running a small business, you can apply for an account.

Active on Companies House: To open a Monzo Business Account, your company must be "active" on Companies House. This means that you have to be registered as a legal entity with Companies House and have a registration number.

Active Director and PSC: Your company must have at least one listed active director and PSC (Person with Significant Control). This is to ensure that the company is being run by individuals who are legally authorized to do so.

Corporate Capital Structure: Your company should have a corporate capital structure of less than 25%. This means that the company should not be controlled by a single individual or a small group of individuals.

Revenue primarily from sales/services: Your company must get revenue primarily from sales/services. This means that you cannot open a Monzo Business Account if you are involved in certain industries, such as mining and quarrying.

In summary, to open a Monzo Business Account, your business must be a legal entity registered with Companies House, have at least one listed active director and PSC, have a corporate capital structure of less than 25%, and get revenue primarily from sales/services.

Pros And Cons Of Monzo Business Account

Pros And Cons Of Monzo Business Account

Every business has different needs, so it’s important to consider the pros and cons of using a Monzo Business Account before signing up. Here are some advantages and disadvantages you should consider:

Pros:

  • Monzo Business Lite is free, so small businesses on a tight budget can use it.
  • The account is easy to get to online or through the mobile app, which makes it easy for users to take care of their money while they're on the go.
  • The Financial Services Compensation Scheme (FSCS) protects deposits of up to £85,000. This gives people peace of mind that their money is safe.
  • The account can be opened quickly, and some customers can use online banking the same day they apply.

Cons:

  • The account can't be managed over the phone or at a branch, which could be a problem for people who like to bank in person.
  • International payments can't be sent to a Monzo account, which could be a problem for businesses that do business all over the world.
  • Charities and partnerships can't get business accounts, which may limit the number of people who can use Monzo.

FAQ Regarding Monzo Business Account Review

Is Monzo safe for business?

Yes, Monzo is safe for business as it provides financial protection through the FSCS and secures online banking services.

What are the downsides to Monzo?

The key downsides to Monzo are that the account can't be managed over the phone or at a branch, international payments cannot be sent to a Monzo account, and charities and partnerships can't get business accounts.

Why won't Monzo give me a business account?

Monzo may not give you a business account if you do not meet the eligibility criteria, such as having an active listing on Companies House and getting revenue primarily from sales/services.

How long does Monzo's business approval take?

Monzo's business approval typically takes less than 48 hours, however, it could take longer depending on the complexity of your application.

Conclusion

This Monzo Business Account review highlights the benefits and drawbacks of opening a business account with Monzo. The account comes with many features, including free banking and 24/7 customer support.

It also offers protection for eligible deposits under the FSCS. However, there are some downsides, such as the inability to manage the account over the phone or at a branch and the restriction on receiving international payments.

Therefore, it is essential to carefully consider your business's needs and requirements before choosing Monzo as your business banking provider.

Overall, the Monzo Business Account can be an excellent choice for small businesses and sole traders, especially those who need a cost-effective and convenient solution for their banking needs.

Michael Restiano

I support product content strategy for Salt Money. Additionally, I’m helping develop content strategy and processes to deliver quality work for our readers.

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