Revolut Business

Revolut Business redefines money management by providing e-money accounts tailored for sole traders, business partnerships, and limited companies. It is specifically designed to operate seamlessly within the United Kingdom and the European Union. You can elevate your financial management requirements with Revolut's extensive suite of services, eliminating the need for multiple financial platforms.

In this review, we shall get into the entire business model of Revolut. You will understand its pros and cons, dos and don'ts, and how Revolut's accounts differ from other business bank accounts. By the end, you'll be empowered to make informed decisions that resonate with your business goals.

• Revolut offers e-money accounts to sole traders, limited companies and partnerships that vary from free to paid services, and different features allocated to other paid accounts.
• The online platform offers 24x7 customer support with its desktop and mobile-friendly website as well as smartphone application with an in-app chat function that can be used to manage the account and all the financial transactions and activities.
• By offering products like open banking, it emerges as an alternative to traditional banks.
• It constitutes an e-money account, signifying that deposited funds do not fall under the safeguard of the Financial Services Compensation Scheme (FSCS).

Revolut is a Fintech firm operating in open banking, money remittance, card payments, and foreign exchange globally. It started in 2015 as a Fintech firm in the United Kingdom and emerged as a game-changing financial website and smartphone application with a fresh approach to money management and an exceptional alternative to traditional banks. With over 25 million customers worldwide, it is one of the most prominent startups in the industry.

Let us understand what makes Revolut one of the world's best online financial services providers.

• 24*7 customer support: An essential feature of Revolut is its desktop and mobile-friendly website and smartphone application available for all types of users. It comprises all the options and offers 24x7 customer support.
• Competitive pricing: The Revolut Business pricing is strategically designed to compete with the increasing charges and associated fees that traditional banks impose on their customers. 
• Accessible across UK and EU: Imagine how easy and swift your business finance will become by owning a standard business account with the accessibility of sterling and Euros when you operate across the United Kingdom and the European Union.
• Diverse services: Offers stock trading, peer-to-peer payments, currency exchange, debit cards, cryptocurrency transactions, and local GBP and EUR accounts.
• Global reach: Revolut has a global reach, supporting over 30 currencies worldwide and providing the flexibility to hold and exchange currencies as needed.

Interestingly, Revolut's approach minimizes or eliminates human interaction, reflecting a pinnacle of technology-driven efficiency. While this draws praise for its innovation, some critics voice concerns about potential pitfalls. However, the Revolut Business desktop and mobile-friendly website and smartphone application aim to help its customers with domestic and international payments in the simplest way possible, saving them time, money, and effort.

The Revolut Business offers two types of accounts - company and freelancer. Let us understand each one of them in the light of what they offer and their prices:

#1 - Company Account

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Note: Readers must acknowledge that these prices are not permanent and may change as per company decisions, market changes, and company policies.

#2 - Freelancer Account

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Note: Readers must acknowledge that these prices are not permanent and may change as per company decisions, market changes, and company policies.

Opening a Revolut Business account has been made hassle-free with a few simple steps. For those who are new to Revolut, the business offers 1-month free trial on one of their paid plans.

Let us break down the Revolut Business account requirements:

#1 - Eligibility Criteria

First and foremost, as a business owner, it's essential to ensure that you and your business are situated within the borders of these nations and possess the necessary legal authorization and physical presence.

To be eligible for a Revolut account, your business must have its presence in at least one of the following locations:

If your business is not registered in the above nations, you can inform Revolut of your interest and you will be notified of future expansions.

Revolut extends its business account services to the following eligible categories:

• Private Limited Company
• Public Limited Company
• Limited Liability Partnership
• Limited Partnership
• Partnership
• Freelancer or sole trader

However, e-money accounts do not apply to individuals or businesses operating in the public sector, charities, trusts, cooperatives, and private foundations.

#2 - Application Process

After ensuring you meet the eligibility criteria, opening a Revolut Business Account becomes effortless. These are the seven simple steps to get started:

Step 1: Visit the Revolut Business page.

Step 2: Choose the country of incorporation.

Step 3: Enter your email address; you may sign up with your Google account.

Step 4: Enter a six-digit verification code received in your email address.

Step 5: Offer a registered and active phone number.

Step 6: Once entered, it shall receive a six-digit code through a text message. Use it to authenticate the number.

Step 7:  Create a password.

After entering the Revolut Business portal, you will encounter a brief online form that requires you to provide comprehensive and accurate information. This step typically takes around 10 to 15 minutes.

As you complete the form, ensure you have all the credentials and proper documentation. The form will prompt you to describe your business, undergo identity verification, and select the appropriate business account plan and essential details.

Once you submit the form, your application will be placed in a review queue. The review process generally takes up to 24 hours, during which Revolut will also contact you.

#3 - Customer Identity Check

This step is to ensure the security and authenticity of your Revolut Business Account. Here are the specific documents and information you must know of before undergoing identity verification.

To verify your identity, you must be at least 18 years old and provide your name, address, selfie, and ID photo. Accepted documents include National ID, Passport, and Full driving license (UK, Switzerland, USA, Australia only). If not a citizen of your address country, proof of residence rights (visa with national passport or residence permit) will be needed.

For UK, Switzerland, or EEA-incorporated businesses:

• National ID should be valid for 1 month from the application.
• The passport should be valid for 1 month from application.
• A full driving license should be valid for 1 month from the application
• Other documents (visa, residence permit) must be valid for 3 months from application

For US-incorporated businesses:

• All documents must be valid for 3 months from application.

For Australia-incorporated businesses:

• Australian/New Zealand Passport: valid for 1 month from application.
• Driving license: valid for 1 month from application.
• Other documents: valid for 3 months from application.

Regarding your money deposited with a firm, ensuring its safety is a paramount concern. Revolut takes this responsibility seriously and has implemented robust measures to protect your funds. Their safeguarding actions kick in when they receive your funds or five days after issuing electronic money (e-money) without obtaining the funds. It means your funds are protected right from the start.

Here's a comprehensive overview of how they safeguard your money:

Upon receiving your funds, they immediately take one of the two actions to ensure security.

• They are either held in a ring-fenced accounts account with a reputable global bank, or
• Invested in low-risk liquid assets within a dedicated client asset account with a renowned global financial institution.

While they're not part of the Financial Services Compensation Scheme (FSCS) like traditional banks, they go that extra mile to secure your funds through their safeguarding mechanisms.

Now let us look at the limits applied to Revolut freelance and company accounts.

ATM withdrawals using Revolut are subject to a 2% fee, and transfers over the free limit will be treated as SWIFT payments, incurring a £3 international cost.

*Any ATM withdrawal is charged a 2% fee regardless of the amount

The pros of the Revolut business account are –

• It easily converts between different currencies at competitive exchange rates, enabling smooth international transactions.
• Revolut's business accounts cater specifically to the needs of both sole traders and companies, and the best part – no monthly fees.
• You enjoy peace of mind with 24/7 customer support available through the convenience of online and in-app chat functions.
• It allows you maintain local accounts in major currencies like pound sterling, euros, and dollars.
• It seamlessly handles your e-money accounts online via the user-friendly Revolut desktop and mobile-friendly website as well as smartphone application.

In any product or service, perfection is rare. Thus, in this review, it's essential to acknowledge the shortcomings of Revolut's e-money accounts as well:

• The absence of FSCS protection means funds in the e-money account lack coverage under the Financial Services Compensation Scheme, an upfront admission by Revolut but a significant drawback nonetheless.
• In an era of digitalization, the lack of physical presence and personal touch is notable. A tangible point of contact in need is expected for financial matters. Revolut Business doesn't provide phone call representatives.
• Due to its virtual nature, cash and cheque deposits are unavailable through Revolut.
• The Revolut business app isn't accessible to public sector organizations, trusts, and charity funds.
• Free account services have transaction limitations. For instance, only five free local transfers are available. Upgrading to a higher plan is necessary for broader options.

There are many competitors of Revolut Business in the UK. Hence, we have divided the competitors into three categories for a clear distinction:

#1 - Revolut Business vs Traditional Banks (NatWest, Barclays, TSB)

Choosing between modern digital solutions and traditional banking institutions like NatWest, Barclays, and TSB becomes crucial when managing business finances.

Let us delve into a comparative analysis of Revolut Business and traditional banks to understand the distinctive advantages each offers.

#2 - Revolut Business vs Neobanks (Monzo, Starling, Cashplus)

Below is a comprehensive comparison of features between Revolut Business, Starling, Monzo, and Cashplus, shedding light on their unique offerings and limitations.

#3 - Revolut Business vs Electronic Money Institutions (Wise, Anna, and Tide)

Let us delve into a comparative breakdown of Revolut business alongside other prominent services (Wise, Tide, and Anna) to understand the nuances that set them apart.

Wise

• Wise is mainly used for currency conversion and payment with limited capability and services. Parallel to which Revolut is extensive.
• It charges £5 per card, with no virtual cards; only the first card is free. Revolut offers three per-account holder cards with a wide range of virtual cards.
• Wise lacks a dedicated business mobile application, so retail and Business customers use the same one. Revolut business app is a better mobile application with exhaustive features and a unique user experience.
• Wise charges 0.33% – 3.56% on all exchanges even though an interbank rate is provided, technically making it more expensive than Revolut.
• Wise has a negative interest rate on EUR deposits and transaction fees with no merchant accounts for card payment acceptance.

Tide

• Tide offers business loans, but Revolut does not.
• Revolut has no in-person contact or branch. Tide has no one-on-one point of contact if it is not with the highest plan.
• Tide has no options for FOREX and multi-currency accounts with a lack of international payments, a limited number of virtual cards, and no merchant accounts for accepting card payments. In contrast, Revolut has various services in all these aspects.

Anna

• Anna has a higher currency conversion fee (1%) than Revolut.
• Revolut and Anna are unsuitable for more giant corporations because of a lack of role sets.
• Both Revolut and Anna have no one-on-one point of contact.
• Like neobanks, Anna is much more UK-centric and cannot board multiple countries' clients, which differs from Revolut Business.
• If not on the higher plan, Anna charges a cash commission of 1% with no crypto, stocks, or merchant account, but Revolut charges no commission to pay into the account.

Though both these platforms offer expense management and online payments with links and payment gateways, they share a set of differences as well, which have been discussed below:

Revolut

• Revolut offers multi-currency accounts to 25 account currencies with a single IBAN. 
• With Revolut, the service is chargeable and varies according to different plans. There is a capped free allowance per month before transaction fees.
• Revolut account holders can earn interest up to 2.25% to 3.51%, depending on the plan they buy.
• Revolut is limited to only 100+ countries.
• Revolut offers an integrated chatbox and human agents, and the users will be charged for phone support.
• Revolut has limited integration with Zapier, Sage, and other common platforms with Airwallex.

Airwallex

• With Airwallex, it is only 23 currencies.
• Airwallex has a 0% domestic and domestic transaction fee and 0% international transaction fees when sent from a local payment network.
• Airwallex does not give interest on its accounts.
• Airwallex has better global payout coverage with over 150 countries.
• When it comes to customer support, Airwallex has dedicated account managers for eligible businesses.
• Airwallex has better software integration with platforms like Xero, Quickbooks, NetSuite, Woo, Shopify, and more.

• Revolut is a dynamic digital service.
• Revolut's Business desktop and mobile-friendly website and smartphone application emerge as a leader, outshining competitors in features and accessibility.

Note: These ratings and reviews are accurate as of August 9th, 2023, and are subject to potential changes in subsequent times.

However, positive reviews and excellent customer service reshape this viewpoint significantly, benefiting startups and small to medium enterprises. It is safe to say that it does have some restrictions, but that can be easily overlooked for the accessibility of the bigger picture. There are typically four services that Revolut does not offer, that is, credit solutions, interest rates, physical money deposits, and actual branch or office locations for customers to visit in case of emergency, which, with a long-term vision, are suitable and beneficial in their way.

• Despite the inherent financial risks, Revolut is a dynamic digital service.
• It has revolutionized the virtual currency market and financial services.
• The service is easily operated via its desktop and mobile-friendly website as well as smartphone application available on both Apple Store and Android's Play Store.
• Revolut's Business desktop and mobile-friendly website as well as smartphone application emerge as a leader, outshining competitors in features and accessibility.

In this review, we've thoroughly compared Revolut against its market competitors. Some are good, and some are better, but they all, like Revolut, lack one thing or another. So, no particular platform is perfect. It only depends on the usage of the account maker and the business operations that will be managed. 

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In conclusion, Revolut with its innovative take towards money management emerges as a potent solution to numerous business finance hurdles.