Challenger Banks for small businesses and startups

When it comes to starting a new business, there are hundreds of things that you need to think of. Writing your business plan, organising your markets, creating your product offering, the list goes on and on. One thing that I constantly see from people at the moment, is which banking they should use. Business banking is key to managing your finances, whenever we deal with a new business, offering startup coaching and mentoring, this is one of the first things we ask. Do you have a business bank?

Whilst many people will flock to their highstreet banks to find their business banking. Small and startup businesses can benefit from much lower (if any) monthly fees and easier setup processes with challenger banks. In this post, we will take a look at some challenger banks and what they offer.

Mettle – Small Business and Startup Business Banking From NatWest

NatWest have come onto the scene strong with Mettle. Making their intentions incredibly clear. Not only is the account FREE to set up. There are No Transaction Fees. It is also including FreeAgent for FREE too! If you are unaware of FreeAgent, it is a very clean and simple accounting software package. Links up to HMRC for VAT returns and Payroll and has a very shallow learning curve. All in all, for a Startup, the Mettle offering is incredibly strong. Of course, this won’t stay free forever, they are looking to take market share quickly. What it could cost in the future is anyones guess, but right now. This is an incredibly strong opening statement. Mettle, like all other challenger banks listed, is operated via an app. You cannot go into a NatWest branch to run your account.

Mettle - Small Business Banking


Tide come into the business banking market on the simplicity side of things. They boast that opening an account can happen in minutes. Their product offering is simple and easy to understand. To be fair to Tide, it is. It will cost you 20p per transaction, in or out. £1 for withdrawels at the ATM. £1 to deposit at the Post Office or 3% at any PayPoint. Simple. Just like Mettle, the Tide platform is run completely via an app, so there are no physical banks to go into.

Tide - Small Business Banking


Monzo offer two tiers of business banking. The first, is a free monthly option or a £5 per month, business pro option. The business pro side offers LTD. companies multi-user access. 6 Months free with Xero, a hugely powerful accounting software system, with a similarly powerful learning curve. Invoicing and exclusive offers. Even on the free banking, you get what you would expect from a bank. An app to run your account (of course), 24/7 customer support etc. It costs £1 per transaction to pay in at a PayPoint. You can withdraw £200 every rolling 30 days, after which it is a 3% charge.

Monzo - Small Business Banking

Startup and small businesses are in our DNA.

Let’s see how we can work together to achieve your full potential.

    Starling Bank

    Starling Bank are many peoples go to choice when thinking about business banking. After all, they hit the market early when moving into the online, app based banking. It wasn’t long before the business element of this followed. Unlike other banking, it took a little more of a dive to find out about the pricing structure for Starling. For the majority, basic functionality is free. Deposits at the post office are £3 up to £1,000, moving to 0.3% thereafter. There is no ATM withdrawel fee, however it is 50p per withdrawel at the post office.There is no monthly fee, however their business support tools are £12 per month for LTD companies, £9 for sole traders. Although it doesn’t seem you have to buy these.

    Starling - Small Business Banking

    Startup and small businesses are in our DNA.

    Let’s see how we can work together to achieve your full potential.