Monzo Business Account Review [2024]: Features, Fees, Support & Alternatives

Monzo is a British neobank that provides online banking services without a physical location. Founded in 2015, Monzo became a licensed bank in 2017 and is headquartered in London. It is fully regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

In 2019, Monzo expanded its business to the United States. It is currently offering services through a partnership with Ohio-based Sutton Bank, as it does not have a banking licence.

Monzo offers personal accounts as well as business bank accounts for individuals and businesses in the UK. With over 9.3 million personal clients and 400,000 business clients, they are one of the most popular digital banks in the market.

Monzo's business account is a GBP account, meaning that it can hold only British pounds. Unlike other neobanks, Monzo does not provide a multi-currency business account at the moment. For businesses in the UK, they offer two types of business banking plans: Monzo Business Pro and Business Lite.

Both plans allow users to: 

• Send and receive instant UK bank transfers for free
• Receive international payments in GBP for free. For other currencies, Monzo will charge 1% for the currency conversion fee (capped at GBP 1,000).
• Send international payments with Wise payment network*.
• Make business expenses with a complimentary physical debit card.
• Set and manage scheduled payments through the app.
• Get instant notifications for every transaction.
• Categorise your spending by dividing your funds into “pots”.
• Earn 1.6% Annual Equivalent Rate (AER) interest, paid monthly with no minimum deposit and up to GBP 100,000.
• Mobile cheque deposits are up to GBP 500. Deposits over GBP 500 can be made by post.
• Cash deposits of up to GBP 1,000 every 6 months at Post offices and PayPoints across the UK.
• Send payment links to your customers or create QR codes for in-person payments.
• Getting paid with card payments and Easy bank transfers. Do note that "Easy bank" transfers are free until 2025, and Stripe’s fees and Ts&Cs apply for card payments.
• Collect payments with your phone via Tap to Pay (Stripe’s fees and Ts&Cs apply)

As a UK licensed bank, your funds with Monzo are protected up to GBP 85,000 under the Financial Services Compensation Scheme (FSCS). You can check your eligibility on the FSCS website.

*Please note that there are transaction limits applied when transferring money overseas.

Finally, the following table shows the key differences between the Monzo Business Pro and Business Lite.

Monzo also provides other business banking services, including:

• Business Loans: Eligible sole traders can apply for up to GBP 25,000 in business loans. Monzo’s representative APR is 15.8% for loans over GBP 10,000 and 29.9% APR if less than GBP 10,000. You can only get one loan if you hold both personal and business accounts.
• Business Overdrafts: Monzo offers an overdraft limit of up to GBP 2,000 to eligible sole traders. Overdrafts are available at 19%, 29%, or 39% EAR/APR (Variable). You can calculate the cost on their website.

These services are not available for limited liability companies at the time of review.

Monzo’s Feature Rating is 3.65/5

Monzo business bank accounts are suitable for UK-based businesses, especially if you are a sole trader or a small business owner. They offer a choice between feature-rich Pro and basic Lite plans. Users can also benefit from the Pots feature, which helps with budgeting and funds saving.

However, while user-friendly with seamless transfers, a mobile app, and strong security, the lack of multi-currency support and higher loan APRs are drawbacks.

The monthly fee for the Business Pro account is GBP 5 per month, which will be charged on the day you open the account. There are no monthly fees for the Business Lite plan. Opening a Monzo business account is also free.

Below are the other fees charged by Monzo.

Payment Fees

Card Fees

Monzo's Fee Rating is 4.5/5

Without account opening fees and monthly fees for Business Lite, Monzo is a cost-efficient option. They charge a GBP 5 monthly fee for a Business Pro plan, which is affordable compared to traditional banks. Every local transaction, including debit card payments, is also free.

However, although the Wise transaction fees are reasonable, they could add up for businesses with high international transaction volumes.

Monzo offers 24/7 customer support through the mobile app. If you are a customer, you can chat with live specialists anytime in the app or call 0800 802 1281 without any charges or +44 20 3872 0620 if you are outside the UK. They can also be reached via email at help@monzo.com.

Customers are required to download the Monzo app in order to access their bank account and other services, including customer support. Monzo does not have any physical branches.

Monzo's Customer Support Rating is 4.5/5

Monzo's customer support and accessibility features are their key strengths, particularly for digitally-focused customers. The 24/7 availability through the mobile app is a significant plus, offering convenience and immediate access to live specialists. However, the absence of physical branches might limit options for those who prefer in-person support or are less familiar with online banking platforms.

You can apply for a Monzo business account only if you are a UK-based sole trader or a registered limited company.

If you are a limited company, your company must:

• Be a tax resident in the UK only.
• Have an active status on Companies House.
• Have at least one active qualified company director listed on Companies House.
• Have at least one person of significant control listed on Companies House.
• Earn revenue from selling goods and/or providing services, not from interest or investment income.

Monzo does not provide business accounts for some business types, such as partnerships, public limited companies, and charities. Businesses in some high-risk industries, such as dating services, money services, and mining and quarrying, are also not qualified. You can check your eligibility on their website.

The application is completely online and can be done via the mobile app or website. You will need to provide proof of your business address, your registered company number or name, your tax reference number, and a form of photo ID. 

You can open a business account if you already have a Monzo personal account. You can find a detailed step-by-step guide on opening a personal and business account with Monzo in our dedicated article.

The Ease of Opening an Account for Monzo is 4.4/5

The opening process of a Monzo business account is highly efficient, straightforward, and user-friendly. The entirely online application, both through the mobile app and website, ensures a swift and convenient setup for modern businesses. The requirement for standard documentation is also clear and manageable.

However, the exclusions of certain business types and industries restrict accessibility for a broader range of potential users.

If you’re planning to enter the Asian market, Statrys is a great choice for your business account needs in the region.

Statrys is a licensed Money Service Operator based in Hong Kong, offering tailored payment solutions for entrepreneurs and businesses in Hong Kong, Singapore, and the British Virgin Islands (BVI). Our solutions include multi-currency business accounts, low-cost cross-border payments with no transaction limits, and FX services with real-time mid-market exchange rates.

At Statrys, we’re committed to providing helpful and responsive customer service. Our team is ready to assist you through various channels, including WhatsApp, WeChat, email, and phone, with support available in multiple languages. This dedication is reflected in our Trustpilot score of 4.6/5.

Here’s a summary of our services.