Barclays business banking review
Barclays is one of the UK’s largest and most established banks, offering business banking, savings, lending, and international banking services. With a strong digital platform and a vast branch network, Barclays caters to startups, SMEs, and large corporations.
Key features of Barclays
1. Business current accounts
- Tailored accounts: Options available for startups, SMEs, and established businesses.
- Free banking for startups: 12 months of free banking for eligible new businesses.
- Overdraft facilities: Flexible funding options with tailored interest rates.
- FSCS protection up to £85,000: Ensures security of business deposits.
2. Business savings accounts
- Instant access savings: Earn interest while keeping funds available.
- Fixed-term deposits: Competitive interest rates for locked-in savings.
- Notice accounts: Higher interest rates for savings with a withdrawal notice period.
3. Business lending and finance
- Unsecured and secured business loans: Borrow from £1,000 to £10 million.
- Asset finance: Funding for equipment, vehicles, and other assets.
- Invoice finance: Unlock cash flow from unpaid invoices.
- Commercial mortgages: Loans for business premises and property purchases.
4. Digital banking services
- Barclays Business App: Manage accounts, payments, and transfers on the go.
- Online banking: Secure 24/7 account access.
- Integration with accounting software: Compatible with platforms like Xero and QuickBooks.
- Fraud protection tools: Secure payment verification and monitoring.
5. International banking services
- Foreign currency accounts: Hold and manage multiple currencies.
- International payments: Competitive FX rates for global transactions.
- Trade finance solutions: Letters of credit and export finance for businesses trading internationally.
Barclays fees and pricing
1. Business current account fees
- Startup banking offer: Free for 12 months, then standard fees apply.
- Monthly account fees: From £8.00 to £12.50, depending on the account type.
- Transaction fees: Charges for cash deposits, withdrawals, and cheque processing.
- Overdraft fees: Vary based on agreed overdraft limits and business profile.
2. Business savings account fees
- No maintenance fees.
- Competitive interest rates based on deposit type and duration.
3. Lending fees
- Loan arrangement fees: Usually a percentage of the loan amount.
- Early repayment fees: Apply for some fixed-term loans.
- Invoice finance fees: Typically a percentage of the invoice value.
Pros and cons of Barclays
Pros
- Comprehensive business banking solutions, including lending, savings, and current accounts.
- Strong digital banking platform with mobile and online banking.
- Business support tools for cash flow management and financial planning.
- FSCS protection up to £85,000.
- International banking services for businesses with global operations.
Cons
- Monthly fees on business accounts after the introductory period.
- Transaction charges may apply, depending on the account type.
- Branch access may be limited, with a push towards digital banking.
- Overdraft and lending fees vary based on business risk assessment.
How Barclays compares to competitors
| Feature | Barclays | HSBC Business | Lloyds Business | NatWest Business |
|---|---|---|---|---|
| Business current accounts | Yes | Yes | Yes | Yes |
| Business savings | Yes | Yes | Yes | Yes |
| Business lending | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | Yes | Yes |
| Relationship manager | Yes (for larger businesses) | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | SMEs, startups, large businesses | SMEs, corporates | SMEs, startups | SMEs, startups |
Who should use Barclays?
- Startups and SMEs: Ideal for businesses needing a full-service bank with digital capabilities.
- Businesses with international operations: Offers competitive FX services and trade finance.
- Companies seeking business loans: Provides various lending options, including asset finance.
- Firms preferring a mix of digital and branch banking: Strong online tools and a broad branch network.
Our verdict
Barclays is a leading business bank in the UK, offering current accounts, savings, loans, and international banking services. While it has monthly fees and transaction costs, its digital banking platform, business support tools, and lending options make it a strong choice for startups, SMEs, and larger enterprises.
For businesses looking for comprehensive banking with both digital and in-person services, Barclays provides a trusted and well-rounded financial solution.