Digital-only challenger bank Starling offers a business account to small UK businesses which are limited companies. There is no monthly account fee, and our comprehensive review takes you through the sign-up process, the features on offer and the other services you can pay to add on to the account. Starling’s business account has been featured as one of our best business bank accounts.
Like many other challenger banks, Starling offers a banking experience that is pretty different to traditional banks. We have even featured this account as one of our best business bank accounts for online banking. Here’s an overview of the features you can expect with a Starling business account and how you can get started:
You can pay cash into your Starling business account via a Post Office branch. There’s a 0.7% charge (with a minimum fee of £3) for each deposit. Starling says that you can deposit a maximum of £20,000 per transaction, with no more than £250 in coins. But as some smaller Post Office branches may have a lower cash limit, if you’re planning to pay in more than £2,000, Starling says it’s best to check ahead with the individual branch.
Cheques can be deposited free of charge and this can be done via the Starling banking app if the value is less than £1,000. All you need to do is take a clear photo of the the cheque with your phone and you’ll get a push notification when the funds have cleared (normally two working days afterwards).
If you need to deposit a large number of cheques you can send them off to the bank’s office in an envelope address to ‘Freepost STARLING’ (no stamp required). Make sure to put your surname and eight-digit Starling account number on the back of each cheque.
Firstly you’ll need to have the Starling mobile banking app. You can download this from the Google Play store or Apple Store (or you may already have it if you’re a personal account customer). You’ll then be given the option in the app to apply for a business account (you must be a limited company to open this type of account – if you’re a sole trader there is a specific sole trader account available with Starling).
After entering some personal details, you take a photo of an accepted form of ID – a passport, EU/EEA ID card, UK residence card or UK photo driving licence – and film a short video of yourself.
With a business account, Starling runs some quick credit checks too, and it may also ask to see documents such as invoices, existing bank statements, accountant’s letters, signed contracts, qualifications and payslips.
If you have all your documentation ready, the application itself can take as little as 10 minutes. Starling says that once the application process is complete, 93% of its new business banking customers will get their account number on the same day and will be able to start making payments into the account.
Starling is designed primarily for UK banking customers. But it will accept business account applications from people who have an overseas telephone number in particular countries, such as most of Europe and the USA. You’ll also need a form of ID that we outlined above (a passport, EU/EEA ID card, UK residence card or UK photo driving licence).
However, remember that to open a Starling business account, you’ll need to be an owner of a limited company which is registered at Companies House in the UK. And any “person of significant control” (usually someone with at least 25% of control or shares in that company) must be a UK resident.
Starling will also conduct a soft credit check when you apply, so this business account may not be suitable if you have a very poor credit history.
The Starling business account comes with a contactless Mastercard debit card, which is a dark navy colour. Unusually, it’s a vertical bank card, rather than a traditional horizontal payment card that we’re used to seeing.
It’s free to take out money at ATMs both in the UK and abroad using this card. Plus you won’t be charged a fee for using the card to make a purchase when overseas. All those with access to the business account can order their own debit card (for example, if your limited company is owned by 2 people who both use the account). Each card which will be issued in the individual’s name and the company name, and is sent to each person’s residential address in around 5-7 working days.
If you mislay the debit card, it can also be frozen (and unfrozen) from the app or online. There are other digital card management features available too. You can get a PIN reminder, cancel and order a new card (if it is lost), and view your transaction and ATM withdrawal limits. You can even block certain transactions, such as those on gambling websites, or stop money being taken out of an ATM. You can also add you card to the mobile payment wallets for Apple Pay, Google Pay and Samsung Pay, as well as wearables like a Fitbit and compatible Garmin devices.
The Starling business account can be accessed online via a computer by using its desktop interface. However, the mobile banking app is where you can take full advantage of the main features, and where the account management functions are focused.
As we’ve discussed elsewhere in this guide, it’s possible to do a huge range of things in the app, ranging from opening the actual account itself or ordering a replacement card, to seeing who has paid one of your invoices and where you’ve spent the most this month.
The app works on Android and Apple devices (including iPads), and these are the main sections:
Yes, Starling offers both business overdrafts and business loans for limited companies. You’ll be able to apply for an overdraft of between £1,000 and £50,000, but a personal guarantee will be required as security. This means you’ll be personally liable for repaying the debt if your business can’t. You’ll also need to pay an arrangement fee when you’re accepted for the overdraft and on an annual basis. To qualify, your business must have been trading for at least 24 months and be UK based. All applications are subject to a full credit assessment.
Should you want to apply for a business loan, the amount you can borrow and the interest rate charged will depend on your business circumstances. Loans of between £25,001 and £250,000 are available, and again, you’ll need a personal guarantee as security. Repayment terms range from 12 months to 72 months and you’ll need to pay a one-off arrangement fee.
Starling’s business account is free to set up and use, but the challenger bank rolled out a new subscription service in July 2020 called the Business Toolkit. This can be added onto a standard business account for a fee of £7 a month, but you’re under no obligation to sign up.
The features of the Business Toolkit include: creating, sending and tracking invoices; automating expenses; recording VAT and connecting to HMRC to submit VAT returns; and uploading bills and scheduling payments to manage cash flow.
You will have access to something called the “Starling Marketplace”, where you can link your business account to products ranging from insurance to legal support. (It’s worth pointing out here that although the integration aspect is free, there may still be charges that come with the individual services you choose to sign up to in the Marketplace.)
You can also use the Marketplace to connect your Starling business account to popular accountancy software such as QuickBooks, Xero and FreeAgent. You will need a separate subscription to operate those services, but you’ll be able to get a live feed of data from your business account to the software.
If you’re specifically after accountancy tools, there is also the option of the Starling Business Toolkit (which we outlined above). This costs £7 a month and is an add-on service for your business account that is offered by Starling itself, and it helps you do your bookkeeping and calculate VAT.
If you don’t want to pay for either an external accounting software package or the Starling Business Toolkit, you can always export your bank statements to a PDF or CSV file, so either you or your accountant can see or work with the figures separately.
Yes, you can. Once you’ve opened a regular UK business account with Starling, you then have the option of opening a euro account to run alongside it. These are the details:
Customers can transfer money between their GBP and EUR business accounts 24/7. You’ll get the current exchange rate, with a 0.4% conversion fee from Starling added on top. You’ll always see the exchange rate before the conversion is made, so if you’re looking to make a transfer on the weekend, you have the option to wait until Monday morning.
If you’re abroad, you can use your Starling business debit card to make purchases or withdraw money from ATMs for free.
But the Starling business account itself can only hold a balance in pounds and receive money in pounds. So if you’re being paid by a company abroad they will need to pay you in pounds (which might involve a fee at their end), and if you are transferring money to a bank account overseas there will also be a charge.
This is one of the reasons why the separate euro business accounts is being offered as an option by Starling. They too can only hold money in their home currency, but if you’re doing lots of business in Europe, you can send and receive payments in euros freely.
As explained above, these accounts do come with a monthly fee, but you can choose to open and run them alongside your standard Starling business account. You can also transfer money between all three, which involves a 0.4% currency commission from Starling.
As mentioned already, you can only apply for a Starling business account if you’re an individual owner of a limited company, or have significant control as one of the multiple owners of a limited company. The Starling business account is particularly suitable for smaller or medium businesses, as it’s free, flexible and quick to set up.
Symmie Swil, Head of SME Banking at Starling Bank: “We make it really quick and simple to sign up, and it’s free, so people can try us. The app itself is easy to use… and we’ve got 24/7 UK-based customer service, which means that if you do have any questions you always have someone at the end of a phone, or a chat or a message who is able to help.”
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| Product Name | Starling Business Account |
| FSCS protected | |
| Account fee | Free |
| UK ATM charge | Free |
| Account software integration | |
| Accounting integrations | FreeAgent, Xero |
| Additional cards | No additional cards |
| Additional card fee | N/A |
| Requires credit check | |
| Credit check | |
| Credit check details | Soft search with no impact on credit score |
| Key benefits | Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm) |
| Overdraft | |
| Freeze card from app or online banking | |
| Instant notifications | |
| Interest rate | 0% |
| Current account switch guarantee |
| |
| Product Name | Starling Business Account |
| International transfer charge | International transfers have a £0.3-5.5 fee |
As Starling is a licensed bank, it is PRA and FCA regulated. Your business account would also covered by the Financial Services Compensation Scheme (FSCS), so you would be protected for up to £85,000 if the financial institution went bust.
You might also be wondering about how safe the actual app is. Starling has a number of security features to ensure your money is safe from fraudsters:
Another great feature of this account is Starling’s Bills Manager which can be used to pay direct debits and standing orders straight from a separate Savings Space.
It works by letting you automatically transfer money that’s already committed to bills, such as energy and rent, to your Savings Space. You can then relax knowing that your bills will be paid automatically when they are due. This will also help you understand exactly how much cash your business has left over to spend.
What’s more, Bills Manager will update and sync automatically to your accounting software such as Xero or Freeagent via the Marketplace.
Starling scored 4.5 out of 5 starts in our 2023 customer satisfaction survey, with 91% of users surveyed saying that they would recommend the bank’s business banking service. Its users highlighted the digital bank’s easy to use app, good customer service and friendly customer service. Here’s what some of those Starling business customers had to say in our survey:
“They are outstanding, customer service is so friendly and helpful.”
“They’ve always offered me fast and reliable customer service.”
“It is easy to access and manage through the app. The overdrafts and payments are easy to manage in real time and the app updates quickly.”
On the Apple App Store, Starling scored 4.9 out of 5 stars based on around 430,000 reviews. On the Google Play Store, the app scored 4.5 out of 5 stars, from more than 103,800 reviews (last updated July 2023). The public app reviews relate to the bank as a whole, not its business account specifically, as both business and personal current accounts are accessed using a single app.
| Email support | |
|---|---|
| Telephone support | |
| In-app or live chat | |
| Contact form | |
| Branch support |
If you’ve made it to this point of the review, you might be wondering: a free business account? For real? Yes, it’s 100% true and, if you’re looking for a way to save money, the Starling Bank business account is hard to beat.
So, are there any catches? Not many, to be fair, but keep in mind that this is still a digital-only bank. You won’t be able to pop into a branch and speak to someone in person, which some consumers may prefer when it comes to business banking. Traditional banks are also able to offer a wider range of products (including, for example, business credit cards). But if those things are not a big deal for you, Starling’s business account is a solid choice.
Get started by visiting Starling's website and sign up for an account. If you have read this review and decided that Starling’s account is not for you, you can also compare other business bank accounts on the market.
It’s free, easy and quick to set up, you can choose between accessing it from the app or from a desktop, you can make payments abroad for free, you can link your accounting software and can even open a euro account. If you’re the owner of a small business, the Starling business account of the best available on the market and you should definitely consider it.
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You’ve said it’s 0.3% to pay cash via a post office (or min £3) whereas am sure I’ve seen Starling say 0.7%, which is it?
Hi Rebecca,
Thanks for getting in touch.
The charge of 0.7% (or min £3) is correct. We have updated our review to reflect this.
Thanks,
Kate
Hello,
Can the business account be accessed by more than one person?
Hi Benjamin,
Thanks for getting in touch and I hope you are doing well.
To answer your question above, yes, you are able to set up a Starling business account where more than one person can access it. To get started, please download the Starling app that can be found on their main website. You will see a GET THE APP sign on the upper right-hand side of the page. When clicked, you will be shown a choice to download for Android or iOs. Simply click and you will be able to download the app. The app will carefully guide you step by step to set up your account.
Hope this helps and feel free to reach out should you need further assistance.
With care,
Nikki
Hi, can I give read-only access to my account to my Accountant
Hi Dec,
Thanks for contacting Finder.
I’m afraid that is not possible. It is against company policy that third parties have access to your account. You may also contact Starling Bank to verify this.
I hope this helps.
Kind Regards,
Faye
If for example I drop my phone down the loo, I able to access a starling account via laptop or pc?
Hi Al,
Thanks for your inquiry.
Unfortunately, you cannot access your account via laptop or PC. Please note that Starling account is only available through Smartphones or tablets.
I hope this helps.
Kind regards,
Bella