Best Business Current Account for a Construction Business

Share Post:

Getting a current account for your construction business can be one of the most important things you do for your business. The nature of construction businesses, in general, demands that the account be diverse and have numerous features that allow you to move money quickly and maintain firm control over the cost of each project you have.

It is crucial to take time to find a bank or financial partner who understands your needs as a construction company and is willing to provide you with the features  that will help you maximise efficiency and your business’s operations. This guide looks at what you should consider when opening a current account for your construction business. It highlights some of the best options, including fantastic challenger banks that could make your finances and account much more accessible. 

How are the Financial Needs of Construction Businesses Different from those of Other Businesses?

Before you start shopping around for the best current account for your construction business, you should understand the unique nature of this niche. This will help you determine which current account will best meet your needs.

      • Sales: Construction businesses offer a wide range of service categories, such as consulting engineering, labour, design, materials and other physical products. This makes it vital for the business to separate the different income streams and the money coming in.
      • Expenses: Equally diverse is the range of expenses construction businesses must keep up with. In addition to the usual overheads of rent and bills, they also have to purchase materials and outsource some services to complete various jobs. Each contract incurs direct and indirect costs that fall into various categories. Accurate accounting is necessary to ensure your company stays on top of all expenses and safeguards its bottom line.

When looking for the best business account for your construction company, you should consider these factors and ensure the account you choose has the right features to help you separate your income and account for every coin going in and out of business to make sure you are running a profitable business from every aspect.

The Best current account for a Construction Business

Construction businesses have several options when looking for the best current account. They can go for high-street or challenger banks. Both options have pros and cons and offer various perks that the business can take advantage of.

However, challenger banks have an advantage because of their higher level of automation, lower regulations and integration, which makes them better suited to meet the needs of a construction business. Some of the best current accounts you should consider include the following:

Pay iO

Pay iO is a leading fintech for businesses. It is one of the few options entirely designed for business banking, with innovative features that businesses can leverage for smooth operation locally and internationally. Pay iO’s impressive range of features makes it a top candidate when looking for the best business current account for a construction business.

Pay iO Business Accounts

Pay iO offers three business current accounts with different monthly fees and features. The base account is the Pay iO Pro, which provides international payments, a business debit card, local and card payment processing, online and app support, and 24/7 customer support.

Pay iO Plus offers the same features as the Pro account, with higher limits and the addition of a EUR wallet . For construction businesses looking for tailored solutions, Pay iO has the platinum account, a fully customised account complete with an account manager to help you manage it.

Features

In addition to the features you get with the account, Pay iO has a wide range of additional features that make the fintechbank a good option  for small and large construction businesses. Small construction companies can use Pay iO to get bank payments directly from their customers and manage their transactions and expenses on one platform.

For larger companies with business outside the UK, Pay iO allows you to send and receive global payments conveniently through your account, helping you reduce administrative time and effort.

Other features include a digital wallet , dedicated bank details, and a business card, which you can get online and hassle-free.

Pay iO also offers currency exchange services and provides the real mid-market rate with only one low fee. This makes it easy to convert currencies and minimises foreign exchange costs for construction businesses with suppliers abroad.

Pay iO can be integrated with leading third-party accounting apps, making it easier to keep detailed accounting and bookkeeping without manually entering your details.* 

Security and Protection

Pay iO has various security features to ensure the safety of your funds and customer information. This starts with various encryption tools that ensure the safe and secure transfer of information. The app also uses 2FA for transactions to ensure maximum safety.  

Fees

Pay iO doesn’t have a free account. Monthly fees are attached to every account, starting at £25 per month. The app also has competitive transaction fees for local payments at £0.5 per payment and 1% plus £0.2 for card payments. All fees are transparent and communicated beforehand, including the currency conversion fees to help you determine how much you’re spending.

Tide

Tide is also a fintech that is a business account provider with over 450,000 UK businesses under its umbrella. It is carefully crafted for construction companies and contractors to provide a faster and more convenient banking experience than traditional banks. Tide offers a free account and premium accounts that allow you to unlock higher limits and more features, making managing your funds and expenses much more accessible.

Tide Business current accounts  

Tide has four accounts available. As your business grows, you can upgrade the account to one that matches your needs.

The first is the Tide Free account. This is a great account for sole contractors or new construction companies with expense limits in place. The account provides free banking with basic features and customer support.

The next account is the Tide Plus account. It is a great account for growing businesses. It offers rewards and free monthly transactions for £9.99 + VAT monthly. With this account, you also get priority customer support, including legal advice, a stylish matte black Tide business Mastercard and other member-only discounts and bonuses from Tide partners.

After Tide Plus, you can upgrade to a Tide Pro account, which is recommended for established construction businesses. It lets you get everything on the Plus account with more free transfers and expense cards. The account costs £18.99 and offers various discounts and unlimited free transfers.

The highest account is the Tide Cashback, which provides cashback on eligible purchases. You can also get 0.5% cash back every time you spend on your Tide card and a dedicated account manager to help you with the account’s affairs.

Security and Protection

Tide has two types of accounts. The first is an e-money account provided by PrePay Solutions PPS, and the second is a full current account provided by ClearBank.

Deposits to the Clear current account are protected by the Financial Services Compensation Scheme (FSCS), but those on the e-money account, provided by PrePay Solutions PPS,  are not.

All of Tide’s business accounts come with multiple levels of security. Accessing the account requires a PIN, thumbprint or face ID. Payments need to be approved via the app, and all cards can be frozen at the push of a button.

Tide offers fast, reliable, and affordable professional banking for startups and established construction companies. The account can be integrated with various accounting software for seamless bookkeeping and ensures you are up to date with your expenses, which is why it could be a great choice for your construction business.

Revolut  

Revolut is an app-only alternative to high-street banks that provides a competitive, hassle-free banking experience for construction businesses operating beyond the UK. Revolut is one of the most trusted e-money institutions  in the UK, and over eight million customers worldwide use the app. Its highlights include leading foreign exchange conversion fees and instant account management, making it an excellent banking option for construction companies looking for low-cost international banking solutions.

Revolut Business Accounts

Revolut offers two different business accounts depending on whether your construction business is registered as a limited company or a sole trader.

You have four plans for registered companies: Free, Grow, Scale and Enterprise accounts, and three for sole traders: Free, Professional and Ultimate.

Features

With the Revolut business account, you can access various features, including premium budgeting and analytics tools to help you better understand your money, instant notifications, currency exchange features, priority customer support, freeze and edit card settings, cash management, and disposable virtual cards.

Another reason you should consider Revolut for your construction business is that your money earns interest. It is one of the few fintechs offering interest on deposits. Depending on your account tier, you can also enjoy additional features on Revolut, including integrating the account with popular accounting software for easier bookkeeping and finance tracking.

Security and Protection

Revolut has a standard app with various online security features, such as requiring a password or PIN when accessing the app. You are also emailed a randomly generated number code with every login, providing an additional security layer. All payments and transfers are subject to approval, and Mastercard and Visa Terms and Conditions protect all card transactions.

Revolut also offers end-to-end encryption as a standard to prevent unauthorised access to its transactions, as well as other layers of security.

Fees

Revolut has a free account that you can start with, although it has numerous limitations. The cost of premium accounts ranges from £5 to £100, depending on your chosen account. There are also transaction fees, which are 20p regardless of your account and 2% on ATM withdrawal fees. Card purchases and transfers to Revolut accounts are free.

ANNA  

Anna is another online banking app that could offer a t current account for your construction business. It aims to bring businesses a better solution by merging business accounts and advanced invoicing into one. The accounts are app-based, and you can open one in minutes and start organising your finances as soon as possible.

Anna Business Accounts

Like other current accounts, Anna offers various business account plans for its customers that you can choose from depending on the size and growth of your business.

The first option is the Pay As You Go account. It has no monthly fees but requires you to pay local payments in and out of the account for 20p and ATM withdrawals at £1.

The Business account is the first premium account you can open under Anna. It costs £14.90 a month and comes with 50 free transfers and three free withdrawals per month.

Finally, there’s the Big Business plan, which costs £49.90 a month. It offers free and unlimited transactions, ATM withdrawals, and card purchases.

Features

Anna supports many features, making it the perfect app for construction companies. From receiving and sending payments to organising your finances, the app provides everything you need to organise your finances, process payments, pay your suppliers, and understand your business’s financial health.

If your clients prefer to pay you using cash, Anna supports cash deposits, a huge benefit for the construction business. You also get a business debit card to use with your account.

Other features on Anna include invoice generation, chat support, and finance management on the account. You can also integrate the account with accounting tools such as Xero, and where necessary, you can get advice from an accountant, among other valuable features and benefits from the account. Unfortunately, third-party accounting app integrations are unavailable on this app, limiting the user to Xero.

Security and Protection

The FSCS does not protect deposits on Anna. However, the app has other security and safety features to safeguard information and transactions on the platform. These include an SSL certificate, data encryption, and 2FA login. You will also need a password to access the app.

Fees

Fees under Anna vary depending on the plan you sign up for. There are monthly fees for the Business and Big Business accounts, as well as transaction and ATM withdrawal fees.

Starling Bank

Starling Bank is another option if you’re looking for the best current account for your construction business and a bank with FSCS backing. It is an award-winning, well-known institution offering plenty of extras to serve your growing business needs.

Starling Bank provides services to more than 500,000 UK businesses  offering accounts to businesses i if you have multiple directors in your construction company because it provides access to multiple directors and has fast set-up and approval, among other benefits.

Starling Bank Business Account

Starling has one current business account that works for sole traders, limited companies, partnerships and even new startups.

The account comes with no monthly fee or transaction charges but the option to add accounting tools or multi-currency features at a monthly cost.

Features

The most notable feature of Starling Bank is the ability for your deposits to earn interest at a 3.25% AER. With interest calculated daily and paid monthly.

Using the account, you get instant notifications when you spend or get paid and get analytics that help you understand your spending habits and determine where you need to make changes. You can also set up your Starling account to automatically pay bills with the Bills Manager to get a clear view of what’s left over for day-to-day spending.

The account also has Saving Spaces that help you separate your funds. You can add titles and images and set targets for your different pots. You can also use this feature to set money aside for hiring equipment, fuelling cars, or other regular costs to keep your construction business running.

Other vital features of Starling Bank include virtual debit cards, 24/7 customer support, overdrafts for eligible businesses and integration with various leading accounting apps.

Securities and Protection

Starling Bank is fully licensed, meaning the FCA regulates it. Your funds are protected by the FSCS by up to £85,000.

Additional security features include a PIN, password or Touch ID to access your Starling app, instant notification to warn you of suspicious activity to protect you against fraud, and the ability to freeze cards and set spending limits via the Starling App.

Purchases are protected by 3D Secure, so you receive a notification to authorise payments in and out with only one tap.

Each of these current accounts offers unique features and benefits that make it ideal for various construction businesses. You can choose the right one based on its range of features and how they match your financial needs.

What Construction Companies Need to Look for in the Best current account

Choosing a current account is critical for whether your construction company is just starting or established. If you’ve been up and running for a while, consider switching banks, a daunting task you don’t want to repeat every few months. Therefore, you need to pick a current account that is the perfect fit and will grow with you.

Some of the factors you should consider when choosing the bank include:

Fees

Transaction and withdrawal fees can add up over the month and year. You should opt for an account with free transactions and withdrawals or one that waives or reduces these fees if you keep a significant balance. Don’t get roped in by the introductory offers. Instead, look at the long-term pricing to ensure no hidden charges could appear later.

Service

How easy is contacting the bank’s customer support when you need it? Do you spend hours on an endless phone loop every time you have a question, or do you have a dedicated account manager you can contact? Work with a current account that provides prompt, quality customer support when needed so it doesn’t affect your business productivity.

Access to Funding

In construction, you might need funding to complete emerging projects. Working with a bank that can provide you with the funding is critical. Some banks provide overdraft facilities, while others offer more robust financing options. If your business is still growing and needs more cash flow to complete large projects, access to funding can be a strong feature to consider.

Automation

For construction companies, automation is a must. It allows you to receive and make payments at any time, wherever you are, check balances, transfer money, and even pay your bills on time without having to set aside time to pay them.

Automation provides massive benefits with bookkeeping by automatically adding expenses and funds received and helping you keep track of all your funds. It can massively save administrative time and effort without compromising the efficiency of your accounting.

Summary

Every construction company deserves a current account that is customised to their needs. Looking at the options available brings you closer to getting the correct account that will now provide the services you need and grow with you.

 

 

Rapid Setup, Web & Mobile Access, FX Exchange

Related Posts

CHAPS Vs BACS

by | Apr 13, 2024 | blog | 0 Comments

CHAPS and BACS are the UK's most commonly used payment systems for transferring large volumes of money. They are commonly used between businesses and are also commonly...

Best Business Current Account for a Construction Business

by | Apr 13, 2024 | blog | 0 Comments

Getting a current account for your construction business can be one of the most important things you do for your business. The nature of construction businesses, in...

Best Current Account for Vape Businesses

by | Apr 13, 2024 | blog | 0 Comments

Running a successful vape business requires a reliable current account to process payments. While many businesses are spoilt for choice in the type of current accounts...

Best Multi-Currency Account

by | Apr 13, 2024 | blog | 0 Comments

A multi-currency account can make it easier for businesses to pay for goods and services and receive payments from customers and clients from different regions. The...

Best International Bank Account

by | Feb 28, 2024 | blog | 0 Comments

International bank accounts are an asset not just to businesses with interests outside the UK but also to expats, travellers and even students. If you constantly move...

Best Business Bank Account for Startups

by | Feb 28, 2024 | blog | 0 Comments

Choosing the right business account and partner is one of the most important decisions a startup can make in its early business journey. With so many players in the...

What is an EMI?

by | Feb 28, 2024 | blog | 0 Comments

Electronic money institution, EMI, or e-money institution is a confusing term for many people partly because it is not mentioned in any regulation or legislation. If...

Best Prepaid Cards for Business

by | Feb 28, 2024 | blog | 0 Comments

Businesses must solve the challenge of fluid efficiency by allowing their employees to access cash for expenses while cutting back on wastage and unnecessary...

How Do Business Loans Work?

by | Feb 3, 2024 | blog | 0 Comments

Finances are the driving force behind every business. At some point, the business will need more money than it can generate to remain afloat, fund an aggressive...

Business Accounts
For the Digital Economy

Easily manage your everyday financial operations with your own business account. No branch visit needed. We execute both incoming and outgoing UK Faster Payments, BACS, Direct Debit and SEPA payments with all EU banks that support SEPA transfers

Discover

Sign Up