HSBC business banking review
HSBC is one of the largest global banks, offering business, corporate, and personal banking services. It has a strong international presence, making it a preferred choice for businesses with global operations.
Key features of HSBC
1. Business and personal current accounts
- Multiple account options: Tailored for startups, SMEs, and large businesses.
- FSCS protection up to £85,000: Ensuring deposit security.
- International banking: Multi-currency accounts and global transaction capabilities.
- Overdraft and credit facilities: Available for eligible businesses and individuals.
2. Business lending and corporate finance
- Business loans: Secured and unsecured options for SMEs.
- Commercial mortgages: Property financing for business expansion.
- Trade finance solutions: Letters of credit and structured finance for global trade.
- Invoice finance: Unlocks working capital from outstanding invoices.
3. Savings and investment products
- Instant access savings: Flexible savings for businesses and individuals.
- Fixed-term deposits: Higher interest rates for long-term savings.
- ISAs and investment accounts: Tax-efficient saving options.
4. Digital and mobile banking
- HSBCnet: Advanced online banking for corporate clients.
- Mobile app: Secure banking with biometric login and mobile payments.
- Integration with accounting software: Compatible with Xero and QuickBooks.
- Secure payment solutions: Enhanced fraud protection and two-factor authentication.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- Competitive foreign exchange (FX) rates.
- Global payments and transfers: SWIFT, SEPA, and trade finance solutions.
HSBC fees and pricing
1. Business current account fees
- Monthly account fees: Ranges from £6.50 to £12.50, depending on the account type.
- Transaction charges: Fees may apply for cash deposits, withdrawals, and international payments.
- Overdraft interest rates: Custom rates based on business assessment.
2. Savings account fees
- No maintenance fees.
- Interest rates vary based on deposit type and term length.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: Apply to fixed-term business loans.
- Trade finance fees: Charged as a percentage of the transaction value.
Pros and cons of HSBC
Pros
- Comprehensive business banking solutions, including lending and trade finance.
- Global banking network, ideal for international businesses.
- Advanced digital banking platforms for SMEs and corporate clients.
- FSCS protection up to £85,000 per eligible depositor.
- Competitive lending and mortgage options.
Cons
- Monthly account fees apply to most business accounts.
- Transaction fees may be higher for international payments.
- Limited free banking options for startups and small businesses.
- Strict eligibility criteria for some lending products.
How HSBC compares to competitors
| Feature | HSBC | Barclays Business | Lloyds Business | NatWest Business |
|---|---|---|---|---|
| Business current accounts | Yes | Yes | Yes | Yes |
| Monthly fees | £6.50 – £12.50 | £8 – £12.50 | £7 – £12.50 | £8 – £12.50 |
| Business lending | Yes | Yes | Yes | Yes |
| Digital banking | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | No | No |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | Global businesses, SMEs | SMEs, startups | SMEs, freelancers | SMEs, startups |
Who should use HSBC?
- Businesses with international operations: Offers multi-currency accounts and FX services.
- Startups and SMEs needing finance: Provides various lending and invoice finance options.
- Individuals seeking premium banking services: Offers private and wealth management solutions.
- Large corporate clients: Access to structured trade finance and investment banking.
Our verdict
HSBC is a leading global bank offering business, personal, and corporate banking services. Its strong international banking capabilities, competitive lending products, and advanced digital platforms make it a top choice for SMEs and large businesses.
However, its monthly fees and transaction costs may not suit smaller startups or businesses needing low-cost banking. For those seeking a robust global banking partner, HSBC provides a comprehensive and reliable financial solution.