Article Summary
Starting a new business involves many crucial decisions, and choosing the right business account is one of the most important. Revolut and Monzo are two of the leading digital-first banks offering business accounts tailored for startups. Both have made a significant impact in the world of business banking with their innovative features, competitive fees, and user-friendly platforms. But when it comes to Revolut vs Monzo Business Account, which is the best for startups? In this guide, we’ll break down the key features, costs, and benefits to help you make an informed decision for your startup.
Why Startups Need the Best Business Account
Managing finances efficiently is vital for any startup’s success. A good business bank account simplifies cash flow management, ensures easy access to funding, and keeps personal and business finances separate. As two of the most prominent digital-first banks, both Revolut and Monzo offer excellent business banking services, but which is better suited to startups in 2024?
Revolut Business Account – Features for Startups
Revolut Business is known for its flexibility and a wide range of tools designed to meet the needs of modern businesses. Here are some standout features:
- Multi-Currency Accounts: Manage and exchange over 30 currencies at real-time exchange rates.
- Custom Permissions: Manage team access and permissions easily.
- Business Tools Integration: Seamlessly connects with platforms like Xero, QuickBooks, and Slack.
- International Payments: Low-cost international payments, making Revolut ideal for businesses with global clients.
- Subscription Plans: Offers multiple pricing tiers starting from free accounts to premium plans with advanced features.
Pros:
- Advanced multi-currency options for international business.
- Powerful integrations with accounting and productivity tools.
- Competitive fees for international transfers.
Cons:
- Some premium features are locked behind paid plans.
- Customer support can be slow for free-tier users.
Monzo Business Account – Features for Startups
Monzo Business has gained popularity for its simplicity and transparent pricing, designed with small businesses and startups in mind. Here’s what Monzo offers:
- Free and Paid Accounts: Monzo offers a free business account and a Pro version (£5/month) with additional features.
- Invoicing: Create, send, and manage invoices directly through the Monzo app.
- Integrated Tax Pots: Automatically set aside money for taxes.
- Expense Management: Easily categorize spending and upload receipts in real-time.
- Business Loans: Access loans and overdrafts tailored for business growth.
Pros:
- No hidden fees, with a free account option available.Integrated tax pots for seamless financial management.
- Excellent customer service and community support.
Cons:
- Limited multi-currency support compared to Revolut.
- Fewer premium business features for advanced users.
Comparing Fees: Revolut vs Monzo Business Accounts
Revolut Business Fees:
- Free account with basic features.
- Paid accounts start from £25 per month, offering additional features like international payments without added exchange rate markup.
- Charges apply for certain services, such as issuing physical cards and advanced features in premium tiers.
Monzo Business Fees:
- Free account with essential banking features.
- Pro account at £5 per month includes additional features such as integrated accounting tools and invoicing.
- No charges for UK transfers, but limited multi-currency transactions can be a downside for startups with international dealings.
Verdict on Fees: Revolut offers more pricing tiers to cater to various business needs, while Monzo provides a more straightforward fee structure with excellent value for smaller startups.
Comparing Features: Revolut vs Monzo Business Accounts
International Transactions:
- Revolut shines here with its multi-currency accounts and competitive rates for international transactions.
- Monzo offers only basic support for international payments, making it less ideal for globally focused startups.
Expense Tracking & Invoicing:
- Monzo provides excellent invoicing tools and built-in expense management, perfect for startups needing simplicity.
- Revolut also offers expense tracking but with more advanced integrations and options for growing businesses.
Business Loans & Credit:
- Both Revolut and Monzo offer business loans, but Monzo’s service is more tailored to small UK businesses, with faster access to loans and overdrafts.
Customer Support & User Experience: Revolut vs Monzo
- Revolut: Known for its sleek mobile app and 24/7 in-app support. However, users on free plans often face longer wait times for support.
- Monzo: Offers a highly-rated mobile app and UK-based customer service, with quicker response times for both free and Pro users.
Verdict: If customer service is a priority, Monzo’s responsive support may be more appealing for startups, especially those needing immediate assistance.
Security & Trustworthiness of Revolut vs Monzo
Both Revolut and Monzo offer top-tier security features, including two-factor authentication and encrypted transactions. However, Monzo is a fully licensed UK bank, meaning deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. Revolut, though regulated, does not offer the same level of deposit protection in the UK, making Monzo a slightly safer option for businesses looking for additional peace of mind.
Which is the Best Business Account for Startups: Revolut or Monzo?
Choose Revolut if:
- Your startup deals with international clients and needs robust multi-currency features.
- You’re looking for advanced integrations with business tools like Xero, QuickBooks, and more.
- You want flexible pricing plans that can scale as your business grows.
Choose Monzo if:
- You want a simple, user-friendly business account with no monthly fees for essential features.
- Your business is UK-based, and you value responsive, UK-based customer support.
- You need straightforward tools for invoicing, expense management, and tax planning.
Final Verdict: Revolut or Monzo for Your Startup?
Both Revolut and Monzo offer excellent business banking options, but the right choice depends on your startup’s specific needs. Revolut is ideal for startups dealing with international clients or needing advanced features, while Monzo is better for UK-based startups looking for simplicity, lower costs, and strong customer support. By understanding the key differences between the Revolut vs Monzo Business Account, you can make the best choice for your startup’s growth.
