Barclays Business Account Review

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Despite the rise of challenger banks, high-street banks still have the lion’s share of the financial market share. Barclays Bank is one of the largest and most heralded high-street banks in the UK, with over 1,600 branches across the country.

The bank offers extensive services, including personal and business accounts, among other banking products like insurance and foreign currency accounts.

If you’re looking into a business account, Barclays is possibly the first banking option you will come across, largely because of its tradition of professionalism and prestige. However, a business needs more than prestige and tradition in a business account. You also need it to have the right features and services that will help your business grow and prosper.

Barclays Bank History

Barclays Bank’s history traces back to 1690 when one of its founding banking businesses was started. The bank first began trading as Barclays and Co in 1896. After several banks combined, it expanded over the decades to become a nationwide bank. Over the years, the bank has continued to grow as it acquired further banks.

Barclays Bank is now an established and prestigious British service provider offering personal and small business banking through their retail banking and banking services to larger businesses and institutions through their corporate and investment banking services.

Now a fully-fledged bank, Barclays offers extensive banking solutions to new startups and larger businesses in the UK. The bank also has account options for community enterprises and charities, allowing customers to manage their cash 24/7 using the Barclays app.

Who is Barclays Business Banking For?

Barclays Bank is for UK-based sole traders and SME owners. To open a business account with the bank, you must be 18 or older. During the account opening process, various inquiries will be made about the company, your business structure, and trade methods.

The various banking services offered by a prestigious bank like Barclays are a major selling point for the company. However, getting the same convenient banking with other major high-street banks, not just Barclays Bank is possible. If you want to cut costs, you can also seek out cutting-edge challenger banks.

As with other high-street banks, you might be pressured into enrolling for banking products that you don’t need and won’t use but will incur fees. You should be on the lookout for this and only ensure you take on services essential to your business.

How to open A Barclays Business Account

To qualify for a Barclays business account, you need to meet the following requirements;

  • You must be above the age of 18 years
  • Have the legal right to settle in the UK
  • Be able to provide evidence of a UK address for the last year
  • Be a company owner whose annual revenue is less than £6.5 million

The bank will also check your credit when you apply for the business account. They will assess both your personal and company credit. If approved for the account, the bank will report your account activity to credit bureaus.

If your business is in the more stringent sectors like social housing and agriculture, expect to jump more hurdles before you can open a business account with Barclays Bank. If you’re unsure whether you meet the requirements to open the account, you can ask them directly.

When applying for the account, you may apply online or through the mobile app if you’re a current customer, a single proprietor or a limited company that has been running for less than 12 months. However, at this point, you might not have sufficient information and history to open the account. But you can contact the bank for further information.

To open your Barclays business account, you will need to provide some background about yourself and the company, such as;

  • Your annual revenue
  • Accounting details
  • Your company’s registration number with Companies House
  • Names, Residences, and birthdates of any directors or partners

A standard set of paperwork and information is required when creating a business bank account. Barclays Bank is one of the banks that has adhered to this standard. You can check the UK Finance website for further details on the requirements.

Pros and Cons of a Barclays Business Account

Some of the benefits and drawbacks of having a Barclays business account at a glance include;

Pros

  • There are several kinds of company accounts, some of which even help with money and credit management.
  • A Barclays app includes billing as a standard feature
  • Cash flow loans and overdrafts are available

Cons  

  • The application process is lengthier than with other banks
  • There isn’t always someone to assist with company and business account matters
  • The bank is widely panned across major user review sites

Barclays Business Account Key Features

What key features should you expect once you get your Barclays business account up and running?

Reasonable monthly charges for business use

The monthly fee is one of the factors businesses consider when looking for a business account. Barclays Bank provides a reasonable monthly price for the use of its banking services. These fees are based on your tariff and the volume of transactions processed via the account.

Barclays offers various pricing plans which are accessible to various types of customers. All plans come with a monthly cost in addition to the transaction fees, with possible exceptions for charity accounts. It’s also possible for some new customers on business accounts to get a year free of monthly service from Barclays Bank.

Simple login process

Although you have to jump through hoops and wait some time to sign up with Barclays Bank, the login process is quite different and simplified. The bank offers convenient account access. This is rated as the second most significant factor for company owners when choosing a business bank account.

Business banking with Barclays can be handled in different ways: via phone, mobile app, internet or in-person.

The bank’s services are accessible to commercial clients by telephone from 8 a.m. to 8 p.m. Monday through Friday and on Saturdays from 9 a.m. to 5 p.m.

FSCS insurance

Another huge benefit of opening a Barclays Bank business account is getting FSCS protection for your deposits. In the event of a Barclays insolvency, you can get up to £85,000 of your deposits refunded. Oversized deposits may not be insured, but other ways exist to manage that risk.

It’s important to remember that the restriction affects all your bank accounts together. Sole proprietors with separate accounts for personal and business finances should know that their combined assets cannot exceed £85,000.

However, the £85,000 restriction doesn’t apply to a limited business account since the company is treated as a different legal entity from its owner.

Financial planning

You also get a customised, preventative financial planning method with a Barclays business account. The bank invests in getting to know you and your goals intimately and works to tailor their services to you at every juncture. Their wealth management service targets those with at least £500,000 in investable assets.

The bank has a group of professionals at your disposal. These include wealth managers, financial planners, investment gurus and others ready to help you reach your financial goals and meet your day-to-day growth needs.

Accepting credit card payments in-house

You can use the bank’s services to receive payments conveniently without leaving your house. Also, you may accept on-the-go with the Barclaycard Anywhere by connecting a card reader to your mobile device.

Your customers can pay with a credit card in person, over the phone or by mail. If you decide to move from your present provider, they may even assist you in covering the fees associated with the move.

Their all-in-one payment system saves time and effort by allowing you to accept all forms of payment in-store and on the go. You monitor inventory, automate reordering, and easily handle bookings and back-office tasks. You can also analyse real-time sales and data customer trends and take advantage of various bookkeeping services at no cost.

International trade

If the goal for your business is to go international, Barclays Bank is a great resource. They offer everything you need to succeed in international trade. Whether you’re just starting, planning a major expansion, or looking for ways to send money internationally confidently and quickly, the Barclays business account might be a good option.

You can take advantage of special pricing offers to minimise the impact of currency changes and send money internationally to your business. You can also learn about local marketplaces at no cost and take advantage of special pricing offers.

Barclays Business Account Packages

There are three distinct types of Barclays business accounts. There is a £0 opening deposit account for new businesses, a £0 maintenance account for businesses with annual revenues not exceeding £400,000 and a £0 maintenance fee account for businesses with annual revenue of between £400,000 and £6.5 million.

There is a monthly maintenance charge of £6 for Barclays business accounts with a Mixed Payment Plan and £6.50 for e-payments with the exception of the situations described above.

Community accounts are free and available for non-profit groups.

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