Lloyds Business Banking Review 2026: Accounts, Fees & Costs Quick Answer
Lloyds Business Banking offers a relatively simple pricing model for small businesses: no monthly account fee for the first 12 months if it is your first Lloyds Business Account, followed by £10 per month, with standard electronic payments included at no extra cost.
That makes the account relatively straightforward for businesses that bank mainly online.
The costs become more important if your business regularly handles cash or cheques.
Monthly account fee: £0 for the first 12 months if it is your first Lloyds Business Account, then £10/monthElectronic payments in: included at no extra costElectronic payments out: included at no extra costCash deposits: 85p per £100 using an Immediate Deposit Machine or £1.60 per £100 over the counterCheque deposits: 85p through the app or an Immediate Deposit Machine; £1.20 over the counterATM cash withdrawals: no fee under the standard Business Account tariffDigital banking: Online for Business and Lloyds Business Banking appFSCS protection: eligible deposits protected up to £120,000
Our view: Lloyds is particularly worth considering for small businesses making most payments electronically but still wanting access to a major UK bank, branches, cheque deposits and broader lending services. Cash-heavy businesses should calculate their expected deposit costs before choosing it.
Compare Lloyds with other UK business bank accounts →
How Do We Work?
Our comparisons are researched and reviewed by the Compare Your Business Costs editorial team using provider information, official UK guidance and business buying criteria. See how Compare Your Business Costs works.
Business banking prices, transaction charges, promotions and eligibility criteria can change. We check current provider information when updating our comparisons, but always confirm the latest Lloyds tariff and terms before applying.
Authored by: Ally Cox – Business Technology & B2B Services Specialist, 10+ years’ experience.
Last updated: September 2026
Key Takeaways
Lloyds charges no monthly account fee for the first 12 months if it is your first Lloyds Business Account.
The account costs £10 per month after the introductory period .
Standard electronic payments in and out are included at no extra cost.
Cash deposits cost less through an Immediate Deposit Machine than over the counter.
Cheques can be deposited through the Lloyds Business Banking app.
Multiple users can be added to the account at no extra cost, with different access levels.
The app supports payments of up to £250,000 per day and cheque deposits up to £20,000 per day.
Lloyds supports UK and international business payments.
Eligible sole traders can access Making Tax Digital software through Lloyds.
Lloyds also provides overdrafts, business cards, loans, savings and other business banking services.
Lloyds Business Banking at a Glance
Feature Lloyds Business Account
Introductory monthly account fee
£0 for 12 months if it is your first Lloyds Business Account
Monthly fee after introductory period
£10
Electronic payments in
Included at no extra cost
Electronic payments out
Included at no extra cost
Cash deposit – Immediate Deposit Machine
85p per £100
Cash deposit – counter
£1.60 per £100
Cheque – app / Immediate Deposit Machine
85p
Cheque – over counter
£1.20
ATM withdrawal
No fee
Business banking app
Yes
Multiple users
Yes
International payments
Yes
FSCS protection
Eligible deposits up to £120,000
How Much Does Lloyds Business Banking Cost? For businesses banking mainly electronically, Lloyds has a relatively simple everyday charging structure but if it is your first Lloyds Business Account, there is no monthly account fee for the first 12 months.
After that, the standard account costs £10 per month.
Standard electronic payments in and out are included at no additional cost.
That means a business primarily receiving customer payments electronically and paying suppliers online could have a predictable core banking cost of £120 per year after the introductory period , before any chargeable services are used.
Cash, cheques, BACS, CHAPS, international payments and some other banking services can create additional charges.
Lloyds Business Banking Fees
Transaction Current Standard Charge
Monthly account fee
£0 for first 12 months if eligible; then £10/month
Electronic payments in
Included at no extra cost
Electronic payments out
Included at no extra cost
Cash in – Immediate Deposit Machine
85p per £100
Cash in/out – counter
£1.60 per £100
ATM cash withdrawal
No fee
Cheque in – app / Immediate Deposit Machine
85p
Cheque in/out – counter
£1.20
BACS file submission
£5.50
BACS item
15p
CHAPS payment
£30
A BACS setup fee may also apply. International transactions and other specialist services have separate charges.
Always check the latest Lloyds Business Account tariff before applying.
Compare Lloyds fees with other business bank accounts →
Worked Example: What Could Lloyds Cost a Small Business? Consider a small consultancy that:
receives customer payments electronically
makes 50 standard electronic payments each month
uses its debit card for normal business expenses
does not routinely deposit cash or cheques
During an eligible introductory period, the monthly account fee would be £0 and standard electronic payments would be included at no extra cost.
After the first 12 months, the core account cost would be £10 × 12 months = £120 per year
The number of standard electronic payments would not increase that cost under the current standard tariff.
Now consider a cash-taking business depositing £5,000 each month.
Using an Immediate Deposit Machine £5,000 ÷ £100 × £0.85 = £42.50
Paying the same amount in over the counter £5,000 ÷ £100 × £1.60 = £80
That is a difference of £37.50 per month purely because of how the cash is deposited.
For a business doing this every month, that difference would amount to £450 over a year.
The lesson: Lloyds can be inexpensive for digital banking, but cash-taking businesses need to pay attention to how they make their deposits.
Compare business accounts based on how your business actually banks →
Is Lloyds Good for Electronic Payments? Yes, this is one of the clearer strengths of the current Lloyds Business Account.
Standard electronic payments in and out are included at no extra cost.
Lloyds defines these electronic payments to include services such as:
Direct Debits
Standing Orders
Faster Payments
internet banking payments
phone banking payments
internet bulk payments
That makes Lloyds relatively straightforward for businesses that receive customer payments electronically and pay most bills and suppliers online.
The £10 monthly account fee after the introductory period effectively becomes the main recurring everyday banking cost for this type of business.
Is Lloyds Good for Cash Deposits? Lloyds supports physical cash banking, but the cost depends significantly on how you deposit the money.
Cash paid in using an Immediate Deposit Machine currently costs 85p per £100 .
Cash paid in over the counter costs £1.60 per £100 .
For example:
Monthly Cash Deposit Immediate Deposit Machine Over Counter
£1,000
£8.50
£16
£5,000
£42.50
£80
£10,000
£85
£160
This makes the method of deposit particularly important for retailers, hospitality businesses and other companies regularly handling physical cash.
Our view: Lloyds gives cash-taking businesses useful physical banking options, but businesses depositing substantial sums should compare the annual cash-handling cost against alternative business accounts.
Can You Pay Cheques Into Lloyds Business Banking? Yes!
Lloyds allows eligible business customers to pay cheques in through its Business Banking app.
The app currently supports cheque deposits up to a total daily limit of £20,000 .
Under the standard Business Account tariff, a cheque paid in through the app or an Immediate Deposit Machine costs 85p.
Over-the-counter cheque transactions cost £1.20.
For businesses that still receive occasional cheques, mobile deposit means they do not necessarily need to visit a branch simply to pay them in.
Lloyds Business Banking App Lloyds’ Business Banking app allows customers to carry out a wide range of everyday banking tasks.
Features include:
checking balances and transactions
making payments
paying in cheques
adding new payment recipients
creating Standing Orders
transferring money between business accounts
viewing or cancelling Direct Debits
accessing digital statements
managing supported account settings
The app currently supports payments of up to £250,000 per day .
Lloyds also provides Online for Business for desktop banking.
Can You Add Multiple Users to a Lloyds Business Account? Yes – Lloyds allows business owners to add other people to the Business Account without an additional user fee.which can include:
business partners
directors
employees
accountants
Different access levels can be assigned, including full, delegate and view-only access which can be useful for growing businesses where more than one person needs visibility or control over company finances.
Lloyds Business Banking and Accounting Software Lloyds provides several accounting-related features and offers.
Eligible sole traders can access HMRC-recognised software designed to help with Making Tax Digital for Income Tax .
Lloyds also currently offers eligible new Business Account customers access to Xero free for six months.
Xero can help businesses with:
bookkeeping
invoicing
bank reconciliation
expenses
cash-flow management
financial reporting
Promotional Xero terms can change, so check the current offer before choosing Lloyds primarily for the accounting benefit.
Lloyds also has Business Finance Assistant for existing eligible users, combining banking and accounting information and providing functions including invoicing, expense management, cash-flow forecasting and tax-related tools.
Lloyds Business Banking for Sole Traders Lloyds offers its Business Account to eligible sole traders as well as limited companies and other qualifying small businesses.
The account can be particularly relevant to sole traders who want:
business and personal finances separated
free standard electronic transactions
mobile banking
cheque deposits through the app
Making Tax Digital support
access to borrowing as the business grows
Eligible sole traders affected by Making Tax Digital for Income Tax can also access Lloyds’ HMRC-recognised MTD software.
Lloyds Business Banking: Pros and Cons
Advantages Things to Consider
No monthly account fee for first 12 months for eligible first accounts
£10 monthly fee applies afterwards
Standard electronic payments included at no extra cost
Cash deposits carry percentage-based charges
Cash can be deposited through machines or over the counter
Counter cash deposits are considerably more expensive
Cheque deposits through the app
Cheque transactions carry charges
Online for Business and mobile banking
CHAPS, BACS and specialist services can cost extra
Multiple users can be added for free
Not a permanently fee-free account
Different user access levels
International transactions have separate pricing
Making Tax Digital software available for eligible sole traders
Some accounting benefits have eligibility or promotional conditions
Broader lending and banking products available
App-first banks may offer more extensive budgeting tools
Who Is Lloyds Business Banking Best For? Businesses banking mainly electronically
Free standard electronic payments mean the £10 monthly account fee becomes the main everyday cost after the introductory period for businesses rarely using chargeable services.
Start-ups and new Lloyds business customers
Eligible customers opening their first Lloyds Business Account can benefit from 12 months without the monthly account fee.
Businesses wanting both digital and physical banking
Lloyds combines Online for Business and app banking with physical cash and cheque banking options.
Businesses with several people managing finances
Free additional users and different access levels can be useful as businesses grow.
Sole traders preparing for Making Tax Digital
Eligible sole traders can access Lloyds’ MTD software alongside their business banking.
Businesses expecting to need finance
Lloyds offers overdrafts, business cards and other lending products subject to eligibility and separate applications.
Who Might Be Better Looking Elsewhere? Lloyds will be slightly less attractive if your business:
wants a permanently £0 monthly account
regularly deposits large amounts of cash
wants an entirely app-first banking experience
regularly spends or transfers money internationally and prioritises low FX costs
wants extensive budgeting and business-management features bundled into its bank account
For example, Starling Business , Monzo Business and Tide Business take different approaches to monthly fees, cash deposits, international spending and business tools.
Traditional alternatives such as Barclays Business Banking and HSBC Business Banking also use different charging structures.
Compare Lloyds with other UK business bank accounts →
Lloyds vs Barclays Business Banking Lloyds and Barclays both provide digital and branch-based business banking, but their everyday pricing structures differ.
Lloyds’ standard Business Account costs £10 per month after its eligible 12-month introductory period, with standard electronic payments included at no additional cost.
Barclays Business Banking instead uses different price plans depending on whether a business primarily makes electronic payments or handles a mixture of cash, cheques and digital transactions.
For a business making lots of electronic transactions, both structures are worth comparing.
For a cash-taking business, the amount and method of cash deposits become much more important.
Lloyds vs HSBC Business Banking There is currently a noticeable difference in the headline monthly account cost.
HSBC’s Small Business Banking Account has no monthly account fee and includes free standard UK digital transactions.
Lloyds offers 12 months without a monthly account fee to eligible customers opening their first Business Account, followed by £10 per month.
However, the comparison should not stop at the monthly fee.
Lloyds and HSBC have different charges for:
cash deposits
cheques
international payments
specialist transactions
They also provide different digital tools and wider banking services.
Businesses should therefore compare the likely annual cost based on their own transaction pattern.
Is Lloyds Good for International Business? Lloyds allows Business Account customers to send and receive international payments through supported digital banking services.
However, international banking has a separate charging structure.
Businesses frequently paying overseas suppliers or receiving money from customers abroad should compare:
international transfer fees
foreign exchange rates
FX margins
supported currencies
receiving charges
foreign card transaction costs
before choosing an account.
A traditional bank’s broader international banking infrastructure can be useful, but it does not automatically make it the cheapest option for international transactions.
Does Lloyds Offer Business Loans and Overdrafts? Yes.
Lloyds provides business borrowing products including overdrafts, credit cards and other forms of finance, subject to eligibility, affordability and credit checks.
Lloyds currently says eligible start-ups can receive an instant decision on up to £5,000 of credit once their new Business Account has been set up.
Eligible businesses switching to Lloyds can receive an instant decision on up to £25,000 and the availability of credit is assessed separately and is not guaranteed simply because a business has opened a Lloyds account.
Can You Switch a Business Account to Lloyds? Yes.
Eligible businesses can use the Current Account Switch Service to move a qualifying business current account to Lloyds.
As part of a full switch, the service can:
transfer your account balance
move regular payments
close your old account
redirect payments sent to your old account
A full Current Account Switch Service switch normally takes seven working days.
Check the current eligibility requirements before applying.
Is Money With Lloyds Business Banking Protected? Eligible deposits held with Lloyds Bank are protected by the Financial Services Compensation Scheme up to the applicable limit.
The current standard FSCS deposit protection limit is £120,000 per eligible person, per authorised firm .
Businesses holding substantial cash reserves should check how FSCS protection applies to their legal entity and any other deposits held within the same banking licence.
How to Open a Lloyds Business Bank Account Eligible businesses can apply online or through the Lloyds Business Banking app.
The standard Business Account is aimed at UK businesses with annual turnover of £3 million or less.
Applicants generally need to:
be at least 18
be a UK resident
have a UK mobile number
be applying for a UK business
have a UK trading address
You should expect to provide information about yourself, your business, its activities, expected turnover and the people involved in running it.
Lloyds says the online Business Account application itself takes around 20 minutes.
Some accounts can be opened within 24 hours, although applications requiring additional information can take longer.
Our View on Lloyds Business Banking Lloyds has a relatively straightforward proposition for small businesses that primarily bank electronically.
Eligible businesses get 12 months without a monthly account fee, followed by £10 per month, while standard electronic payments in and out remain included at no additional cost.
That makes the ongoing cost relatively predictable for consultancies, agencies, professional services firms and other businesses that rarely handle physical money.
Cash is where the calculation changes.
Depositing £5,000 through an Immediate Deposit Machine currently costs £42.50, while depositing the same amount over the counter costs £80.
For cash-taking businesses, how you deposit money can therefore matter more than the £10 monthly account fee itself.
Lloyds also has useful features for businesses that want a traditional bank without giving up digital functionality, including app cheque deposits, multiple users, different access levels, lending and accounting support.
As with any business bank account, compare what Lloyds would cost for the way your business actually banks rather than focusing on the introductory offer alone.
Compare business bank accounts, fees and features →
Frequently Asked Questions Is Lloyds business banking free?
Lloyds currently charges no monthly account fee for the first 12 months if it is your first Lloyds Business Account. After the introductory period, the standard monthly account fee is £10. Chargeable transactions and services can still create additional costs.
How much is a Lloyds business account per month?
The standard Lloyds Business Account currently costs £10 per month after an eligible 12-month introductory period.
Does Lloyds charge for business bank transfers?
Standard electronic payments in and out are included at no additional cost on the Lloyds Business Account. Other payment methods, including BACS file submissions, BACS items and CHAPS, have separate charges.
How much does Lloyds charge for cash deposits?
Lloyds currently charges 85p per £100 for cash paid in through an Immediate Deposit Machine and £1.60 per £100 for cash paid in over the counter.
Can I pay business cheques into Lloyds using the app?
Yes. Eligible business customers can pay cheques in using the Lloyds Business Banking app. The current daily cheque deposit limit is £20,000.
How much does Lloyds charge to deposit a cheque?
Under the standard Business Account tariff, cheques paid in through the app or an Immediate Deposit Machine currently cost 85p. Over-the-counter cheque transactions cost £1.20.
Does Lloyds offer free electronic payments?
Standard electronic payments in and out are currently included at no extra cost with the Lloyds Business Account.
Can I add my accountant to my Lloyds Business Account?
Yes. Lloyds allows business partners, employees and accountants to be added as users, with different access levels available.
Does Lloyds offer accounting software?
Eligible sole traders can access Lloyds software designed for Making Tax Digital for Income Tax. Lloyds also currently offers eligible new Business Account customers Xero free for six months, subject to promotional terms.
Is Lloyds good for sole traders?
It can be. Sole traders can benefit from digital banking, free standard electronic payments, mobile cheque deposits and, where eligible, Making Tax Digital software.
Is Lloyds business banking FSCS protected?
Eligible deposits are protected by the Financial Services Compensation Scheme up to the applicable limit, currently £120,000 per eligible person, per authorised firm.
Can I switch my business account to Lloyds?
Eligible businesses can switch using the Current Account Switch Service. A full switch normally takes seven working days.
Does Lloyds offer business overdrafts?
Yes. Lloyds offers Business Overdrafts and other borrowing products, subject to eligibility, affordability, status and separate application.
How long does it take to open a Lloyds business account?
Lloyds says its Business Account application takes around 20 minutes and an account could be opened within 24 hours. Applications requiring additional checks or information can take longer.
Compare Business Banking Options Lloyds is only one business banking option.
Compare monthly account fees, electronic transactions, cash deposit charges, cheque costs, international payments, accounting tools and banking support before deciding which account best matches your business.
Compare UK business bank accounts →
Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
