How to open a Lloyds Business Bank Account: A detailed guide

Business bank accounts are imperative for any business. With one, you can track your expenses, manage your invoices and help to build your business credit rating for future loans.

Lloyds Bank is a leading financial services group in the UK. Founded in 1765 in Birmingham, it’s one of the UK’s biggest high-street banks built on a legacy of trust and innovation. Its various types of business bank accounts are suitable for a range of different businesses, big and small.

In this detailed guide, we take a look at the different types of UK bank accounts offered by Lloyds, as well as how to open bank accounts and the documents you’ll need. We’ll also explore the new TransferGo Business Account, a single, simple-to-use, multi-currency business account helping businesses handle international payments better.

Types of Lloyds Bank accounts

Lloyds offers a range of bank accounts designed to support businesses at different stages and across various industries. Each Lloyds account is tailored to meet a variety of user requirements.

Let’s take a look at some of the different Lloyds account types on offer:

1. Lloyds Business Account for small businesses and start-ups

Tailored to start-ups or small businesses with an annual turnover of less than £3 million, this account comes with no fees for the first 12 months.

It also offers free accounting software, as well as the option to send 24/7 international business payments and earn interest on your savings.

2. Lloyds Business Account for larger businesses

This account is designed for established businesses with an annual turnover that exceeds £3 million.

As well as access to free accounting software that lets you control your finances, this bank account offers a choice of tariffs to suit your business needs. You’ll also get access to a dedicated relationship manager to support your business.

3. Lloyds Commercial Client Accounts

The Lloyds Commercial Designated and Designated Client Account enables you to hold your clients’ individual funds in separate accounts and is suitable for businesses that hold client money—solicitors and accountants, for example.

There’s also a Commercial Undesignated Client and Clients’ Call Account, which enables you to hold money on behalf of your clients with easy withdrawals and instant access to accounts.

4. Lloyds Credit Union Account

This account is tailored specifically for community credit unions. It offers free day-to-day banking, instant access to funds and an easy-to-manage account with simple withdrawals, direct debits and standing orders.

Credit Union Accounts come with no monthly fees.

5. Lloyds School Bank Accounts

Developed specifically for state-funded schools, academies and multi-academy trusts, the Lloyds School Bank Account is a specialist school account to help schools manage their finances with core school activities such as processing payroll and receiving funding.

Independent schools registered with Companies House are eligible to apply for the Lloyds Business Account.

6. Lloyds Community Account

This account is tailored to establishments such as non-profits or other social enterprises including clubs, societies, charities and associations. You can add up to four signatories to this account, providing an extra layer of security.

In addition, non-profits pay lower monthly fees than other businesses.

Requirements for opening an account

If you’d like to open a Business Bank Account with Lloyds, there are several bank account requirements in place. For example, you must be a sole trader, company director or a partner for a business based in the UK. You must also be aged 18 and over.

In addition, you must have an annual turnover of less than £25 million and it must be your first business bank account with Lloyds.

Documents needed

To open a Lloyds Business Bank Account in the UK, you’ll need the following documents:

• A valid ID such as a passport or driving licence. This is required for all business bank account holders
• A copy or photograph of your signature
• The names, dates of birth, three-year personal address history and contact details for every individual connected to the account
• Your business name, address, activity details and estimated annual turnover

Limited companies must also have their details up to date with Companies House. Please allow four days from the date of Companies House registration before applying online or over the phone.

Online account opening process

To open an account with Lloyds Bank online, simply download its mobile banking app or visit the website.

Once you’ve visited the website, navigate to the Business Bank Account page and select the type of account you wish to open. You’ll need to provide key details about your business including whether you’re a sole trader, limited company, partnership or something else. The application process will then prompt you with more questions to continue your application.

You’ll need to meet all requirements and you must upload any supporting documents required. You’ll also need to complete the verification process by uploading a selfie and your ID. The details will automatically be submitted to the bank and processed for account opening.

In-branch account opening

If you’d prefer to speak to somebody face to face when opening your account, you also have the option to visit a Lloyds branch to open your account. It’s recommended you make an appointment for this.

When you arrive for your appointment, make sure you have all the proper documents and information required. You can also come with any questions you might have about the different types of accounts on offer. The representative can help you decide on the most suitable account for your business needs.

Once you’ve completed the application form and presented the required documents, the bank will process your application, approve your account (if it meets all requirements) and notify you with instructions on what to do next.

Digital banking features

Digital banking has gained popularity in recent years due to its convenience. With Lloyds internet banking, you can transfer money between your accounts, pay bills and print and download your statements, all from the comfort of your mobile phone or desktop. Internet banking is available 24 hours a day, 7 days a week.

Whether you’re looking for personal banking or business banking, some of the additional benefits of Lloyds online banking include the ability to:

• Manage your subscriptions
• Make international payments and set up standing orders
• Freeze or unfreeze your cards in the case of your card being lost or stolen
• View and download your statements
• Track and manage your finances with Money Manager
• View and pay your bills more easily

Verification and approval process

Financial services companies are expected to adhere to the Know Your Customer (KYC) process. They’re also required to verify their customer’s identity by conducting due diligence.

When you open up a new account, Lloyds Bank will verify the account holder’s identity with a current UK photo driving license or valid passport. The bank will counter-check these documents against official records and databases.

In addition, Lloyd is expected to comply with the UK anti-money laundering regulations. Therefore, they cross-check your data against governmental institutions to screen you for illegal activity. Once your application passes all these checks, it’s reviewed by a bank representative. If approved, it’ll be processed for opening and you’ll receive a notification message or email with your account details and instructions on how to activate it. 

TransferGo Business Account

When it comes to business bank accounts, there are many types to choose from and the right business bank account will depend on your business needs and requirements.

If you’re looking for an account that enables you to send, receive and manage money from all around the world, consider the TransferGo Business Account. This single and easy-to-use account is completely free and allows you to hold and exchange multiple currencies at once, while helping you to keep your expenses down with zero set-up fees or subscriptions. What’s more, there’s a top-notch team of experts on hand providing specialised customer support should you need it.

Whether you’re a sole trader or run a multinational operation, the TransferGo Business Account will help you maximise your profits thanks to transparent pricing with no hidden fees and transfer margins as low as 0.35%. Its high-grade security protocols also keep your funds safe and guarantee you peace of mind, every step of the way.

Ready to sign up? Open your free TransferGo Global Business Account today.