Starling Bank Business Account Review [2023]: Features, Fees, & Alternatives

If you are not looking for passerine birds but are looking to open a business bank account in the United Kingdom with an alternative to the high street banks then you have come to the right place.

If you've heard of Starling Bank Limited and want to learn more about their business accounts, our in-depth review of their business banking services is a perfect read.

We cover all the questions that matter to determine if a business bank account with Starling, one of the UK challenger banks, fits the needs of your business.

Along with the price, we consider other factors such as who qualifies for an account, how to use it, what kind of support is offered, and basically what kind of online banking experience they offer for businesses.

Choosing the right payment business bank account is indeed key to the success of your company.

What is Starling Bank?

Starling Bank is a UK-based digital challenger bank. It is often perceived as one of the best business banking providers available.

It can offer you a personal account, a joint bank account, and different types of business accounts.

It is a British digital bank and is licensed and regulated bank by the Prudential Regulation Authority and the Financial Conduct Authority. 

Starling has been awarded the Best British Bank at the British Bank Awards for four consecutive years in 2018, 2019, 2020, and 2021. [*]

How to open an account with Starling Bank?

Starling provides personal and joint accounts for UK residents aged 16 and over. [*]

A Starling business account is available for:

• Limited Companies (LP)
• Limited Liability Companies (LLP)

If they are registered at Companies House, they are eligible to open a Starling business bank account. General partnerships or charities which are not registered as a Limited Company are not yet supported.

Limited Companies and LLPs need all Persons of Significant Control (PSCs) to be UK residents and natural persons (i.e. no corporate shareholders).

All directors with access to the account must be UK residents.

The business must not be a holding company, dissolved, in liquidation, or engage in any activities set out in Starling Bank's terms and conditions.

You must be able to produce evidence of your trading activities so parties can verify that your business does what you say it does. Companies House documents are not accepted to prove the activity of your company.

Your company must meet its standards for AML/KYC, fraud, and credit checks and processes.

You can refer to their website to find out more about the terms and conditions to check which activities/sectors are not supported.

Finally, note that Starling Bank only offers bank accounts and does not offer client money accounts.

How to apply for a Starling account?

The first step to opening an account is to apply online via the official website.

You will need :

• A mobile phone (and signal).
• Valid photo ID such as a passport or UK driving license.
• If you have documents that confirm the nature of your business at hand this will be easier. For example, this could be a trade registration or bank statement which shows your activity.
• And 10 minutes of your time to complete the application form.

You can start the application by clicking 'Get Started' on their website' or directly downloading their mobile app available on App Store or Google Play.

From this, you'll need to fill in the information and simply submit your application.

From this, Starling Bank will review your details. Upon submission of the application, there may be some additional steps to satisfy Starling Bank's KYC requirements (Know-Your-Customer). These steps, if any, are not detailed but Starling Bank mentions that accounts are opened within 1 to 8 days. [*]

Starling Bank's Business Products

Below, we set out the current Starling business accounts, as advertised on Starling Bank's website.

Thanks to Starling Bank's app (this is an online-only bank) and its powerful money management tools, Starling provides a current account designed to meet the needs of small businesses.

Note, as these offerings can change from time to time, it is important to check their website for up-to-date information.

Business Current Account

In addition to the personal current accounts, the “Starling Bank Business Current Account” is Starling's core product. It is used for day-to-day operations for LPs, LLPs, and startups.

The main features of this account are:

• UK bank transfers (limits applied)
• International payments
• Free bank ATM fees
• Multi directors access
• Connect with tools like Xero, QuickBooks...
• Users can deposit cash and cheques (with limits applied)
• Digital receipts
• Spaces - Possibility to move funds in 'spaces' for different purposes and goals
• Integration with business tools like Quickbooks, Xero, and FreeAgent
• Starling Business marketplace
• Instant payment notifications
• Automatic expense categorization
• Multiple director's account access
• Fee-free spending outside of the UK
• The account is protected up to £85,000 by the Financial Services Compensation Scheme (FSCS)

The Business Account is customizable with additional modules. [*]

The goal is to create the account that suits you best, by subscribing to the services your business needs. With the Mobile app, you can add as many available modules as you want.

Here is a list of the add-ons:

The Business Toolkit

Starling Bank's Business Toolkit is an additional feature designed for invoicing, bill payments, and expense management. It's free the first month, then £7 per month.

Some of the common features are:

• Invoice creation and auto-matching
• Bill management
• Automatic categorization of expenses, including suggestions for what is tax deductible
• Sole trader tax estimation
• Making Tax Digital VAT submissions
• Bookkeeping to-do list, including prompts to attach receipts or invoices for good record keeping

Multi-currency account feature

With a Starling business account, you can add a EUR account or USD account to boost your GBP account.

This will allow you to hold, store as well as receive and make payments in EUR or USD.