Barclays vs Lloyds business account – which one should you choose?

This guide compares Barclays’ Business Current Account and Lloyds’ Business Current Account – covering everything from features and fees to customer support and who can actually apply.

And because we’re ANNA, we’ll also show you how we stack up – especially if you’d prefer your business account to come with admin support, tax tools, and real humans on hand 24/7.

Barclays vs Lloyds at a glance

If you want the short version, here it is: both banks offer a 12-month free banking period for new businesses, followed by a monthly fee.

Lloyds keeps things slightly cheaper long-term, while Barclays adds a more extensive branch network and online management tools.

Takeaway: Both offer solid, traditional business banking with similar perks – but Lloyds is slightly cheaper, while Barclays has stronger digital and international features.

Who are these accounts best for?

⚡ The cheapest

If your main goal is to minimise ongoing costs, Lloyds comes out ahead after the free period. Its monthly maintenance fee of £7 is a little lower than Barclays’ £8.50, and the day-to-day transaction fees are broadly similar.

Both banks offer a full 12 months of free banking for startups or switchers, so you can test the waters before paying anything.

Verdict: Lloyds is the cheaper option overall, especially after the free year ends.

⚡ Best value for money

Both accounts are comprehensive, but Barclays packs more in for its slightly higher fee. You get access to powerful online banking tools, international payments, integration with accounting software such as Xero and QuickBooks, and a vast network of branches for cash or cheque handling.

If you rely on overseas payments or need in-depth financial management, the extra £1.50 a month may well be worth it.

Verdict: Barclays offers better all-round value for businesses that use multiple features, especially international services.

⚡ Best for sole traders

Sole traders benefit from simplicity, and both banks deliver.

Lloyds is ideal if you want a straightforward account with predictable fees and access to a local branch. It’s easy to open, and most day-to-day tools – like UK transfers and debit cards – are included.

Barclays, however, gives sole traders access to the SmartBusiness Dashboard and invoicing tools, which can save time on admin.

Verdict: Lloyds wins on simplicity; Barclays offers more if you like integrated business tools.

⚡ Best for limited companies

Running a limited company means managing multiple users and potentially higher transaction volumes.

Both banks support this, but Barclays stands out with multi-user access controls and more flexible online permissions. Its account also integrates better with corporate finance tools.

Verdict: Barclays is stronger for limited companies that need multi-user online access and more robust management options.

⚡ The smartest app – Barclays’ edge

Neither of these banks is “fintech-first,” but Barclays’ app feels more modern and capable. You can handle invoices, schedule payments, and monitor cashflow through the SmartBusiness Dashboard.

Lloyds’ app is clean and functional, but it feels closer to a consumer app with fewer business-specific features.

Verdict: Barclays’ app experience is smoother and better suited to managing a business day-to-day.

Who can open an account?

Both banks are open to UK-registered small businesses, but eligibility and documentation differ slightly.

Lloyds

• Sole traders, partnerships, limited companies
• At least one UK-based director
• ID and business verification required
• Industry exclusions apply (e.g. gambling, crypto)

Barclays

• Sole traders, partnerships, limited companies
• All persons of significant control must be UK residents
• Requires business documents, ID, and tax details
• Industry exclusions apply

Pricing and fees

Money matters – and this is where the differences are clearest.

Barclays pricing

• Free banking for 12 months (new businesses and switchers)
• £8.50/month after the free period
• Transaction charges apply depending on usage (cash handling, CHAPS, etc.)

Lloyds pricing

• Free banking for 12 months (new businesses and switchers)
• £7/month after the free period
• Similar transaction fees for cash and electronic payments

Value for money

• Sole traders: Lloyds wins with lower ongoing costs
• Limited companies: Barclays provides better control tools and flexibility

Summary: If cost is your top priority, Lloyds edges it. If digital tools and flexibility matter, Barclays gives more for slightly more.

Features comparison

On paper, both accounts look traditional – but Barclays includes more digital extras, while Lloyds keeps things simple.

Payments and transfers in the UK

Both support Faster Payments, Direct Debits, and standing orders.

Cash and cheque handling

• Barclays: cash and cheque deposits via branch or Post Office
• Lloyds: cash and cheque deposits at Lloyds branches or Post Office

Cards and spend management

• Both: standard debit card, no virtual or expense cards
• Barclays: better online visibility and permission control

Invoicing and integrations

• Barclays: integrated dashboard, invoicing, accounting sync
• Lloyds: basic transaction export and manual upload to accounting tools

Lending and overdrafts

Both banks offer overdrafts (subject to approval) and business loans with variable limits.

App and user experience

A good app makes or breaks your daily workflow.

App interface

Barclays’ app is more refined, with invoice management and dashboards.

Source: App store

Lloyds’ app is simpler and focuses on core banking tasks.

Source: App store

You can explore both apps yourself:

• Barclays on the App Store / Google Play,
• Lloyds on the App Store / Google Play.

Web access and APIs

Barclays offers detailed web access and APIs via SmartBusiness.
Lloyds has secure online banking but fewer integrations.

Onboarding speed and switching

Both support online applications and the Current Account Switch Service (CASS) for easy migration.

Customer support and reviews

Support channels

App Store / Google Play ratings

Both apps average between 4.6 and 4.8 stars, with Barclays slightly ahead for functionality.

Trustpilot score

(Note: low ratings are typical for large banks – most complaints relate to legacy systems and delays rather than app reliability.)

Trustpilot complaints

• Barclays: Some users cite slow onboarding and compliance checks.
• Lloyds: Common issues include branch waiting times and card delays.

Security and trust

FSCS protection

Funds up to £85,000 are protected under FSCS with both banks.

Fraud prevention and controls

Both offer SCA, 3D Secure, card freezing, biometric login, and instant transaction alerts.

Bank stability and licensing

Both are long-established UK banks with full banking licences and robust capital backing.

Which is best for your business?

• Freelancers and sole traders: Lloyds offers a simpler, lower-cost setup.
• Limited companies and teams: Barclays’ permissions and integrations make it a better fit.
• Cash-handling businesses: Both work well thanks to branch networks.
• International traders: Barclays’ SWIFT and multicurrency tools give it an edge.

Alternatives to consider

ANNA – your business account and admin sidekick

Here’s where we do things differently.

ANNA isn’t just a business account. It’s admin support in your pocket (the clever kind). You get smart banking and built-in tools to help with all the other stuff no one tells you about when you start a business.

• Create and send invoices in seconds
• Capture receipts and auto-categorise your expenses
• Get VAT and Corporation Tax filed – automatically
• Add your team – not just co-directors
• 4 free SWIFT payments a month on our Big Business plan
• Real humans, 24/7 – every plan, every day

And yes – ANNA starts at £0/month.

Revolut Business

A strong choice if you work globally. Revolut Business shines with multi-currency accounts and competitive FX, making it ideal for international freelancers or companies that get paid in EUR or USD. But it’s not a fully licensed UK bank, so FSCS protection doesn’t apply.

Wise Business

Best for holding and receiving foreign currencies. If your business invoices abroad or gets paid in multiple currencies, Wise offers excellent rates and low-cost international transfers.

Tide

Quick setup and simple tools for early-stage businesses. Tide isn’t a bank (it’s an e-money account), but it gives you fast access to business banking features with minimal paperwork.

Mettle by NatWest

A free account backed by a big name. Mettle is a no-frills option, useful for startups testing the waters. But features are limited compared to Barclays, Lloyds, or ANNA.

Verdict: Barclays vs Lloyds

Checklist:

• Cheapest ongoing costs → Lloyds
• Best digital tools and dashboards → Barclays
• Strongest for international payments → Barclays
• Built-in admin and tax tools → ANNA Money

Whichever you choose, your business account should work for you – not just hold your money.
Whether it’s team access, tax filing, or simple everyday banking, there’s an option here that fits.