/ Business

5 Reasons your Business Bank Account Fails to Deliver

Let's be honest, high street banks are in trouble. From clunky apps and slow websites, to hidden costs and poor service - business customers deserve more from their bank accounts. Are you happy with your business bank account? Because we weren't... and so we've built our own from the ground up!

Picture the scene - you’re running a successful SaaS (software as a service) business, with clients spread across the globe. You’ve just signed your 500th contract and you're already on your way to becoming a unicorn.

Stop trying to be humble, you have a great product in your hands and you know people love it from the moment they start using it - it's your time to shine!

Now, the problem is that in order to expand, you need more manpower. But finding good talent is easier said than done. And when you can't find talent at home, naturally, you start to look abroad - something which brings many challenges to a growing company.

Eureka! You’ve just realised that:

a) It makes more sense for your business to have a few teams based in different parts of the world. There are some great talent pools out there waiting to be discovered, plus you'll have closer contact with potential local clients!

b) You're officially becoming an international business and that's all well and good, but going overseas usually means higher overheads. Just think of the transfer fees, blown-up exchange rates, hidden costs… the list goes on!

By now, you're probably considering some kind of international, multi-currency bank account for your company, which could cost a small fortune - until now!

When we started building Revolut for Business, we realised just how broken business banking actually was. Here are just 5 reasons why Revolut is better than business bank accounts:

1. NO Interbank Exchange Rates 💱

You see, traditional banks still use archaic ways to actually bank with their customers. Everytime you make a foreign exchange transaction, the bank sells you the foreign currency with an added fee already baked into the price. That's why you'll see tags like 'commission-free' or 'best exchange rate' across most of their marketing.

It's likely that you've never even realised this before, since most people assume that exchange rates are roughly the same between most banks, but sadly, this isn’t the case – banks can add up to 3% on top of the regular mid-market rate, for most currency pairs. Just have a look at this high-street bank, for example:

liverate

You would think that the “indicative live rate” refers to the real exchange rate, but it's actually just smoke and mirrors. Their rate is exactly what it says on the tin - it's simply 'indicative', not real, and this is how they phrase it:

liverate2

So their “live rate” has actually been derived from a reference rate – which is also set by the bank. Do you see where we're going with this?

Revolut has done away with these mark-ups – with Revolut, you'll get the real exchange rate, when you pay out to over 130 currencies we support.

At the time of writing, you would have needed to pay £90.11 to buy €100 - that's a %2.8 mark-up over the actual price of the currency. But with Revolut, you would have only paid £87.56 to get €100. Since business transactions tend to involve higher amounts, your fees would also be higher.

So if you thought that high street banks charge a lot through the exchange rate alone, make sure you read the small print too:

liverate3

Subscribe

2. NO Multi-currency accounts 💷💶💵

Ok, so you now have small teams based in Poland and Romania, as well as those backend developers you hired in Cape Town on a 6-month contract; let’s face it – if you’re using your bank to send and receive money between separate bank accounts in each of these locations, you’re in for a pretty expensive business banking experience.

The banks have let you down with their appaling exchange rates, not to mention all the fees you have to pay just to send money between the banks. You could probably hire a couple more people per year, if you could only find a way to lower those overheads, that have become quite sizeable since you’ve branched out.

Revolut for Business allows you to open a business account with unique IBANs and hold 25 currencies. You can also spend in over 130 currencies using the real exchange rate and send payments to any business partner in the world.

“Sending and receiving money easily is pretty much the raison d’etre for Revolut.”Jaron, DDVTech

It's important to realise that your business can actually lose money if you deal with foreign currencies and you don't have the ability to hold an account in those currencies.

Here is a generic example - Your company is based in the UK and you've just signed a deal with a French company, agreeing to pay them €500.000, in 6 months' time. Unless you already have a Euro account with funds set aside for the deal (unlikely for a business starting up), you will be at the mercy of the exchange rates for the next 6 months. This can happen because exchange rates always fluctuate, and if the GBP / EUR rate drops significantly (like it did during Brexit), 1 Euro will cost a lot more than it does today.

If you are such a company, you can create an account in the foreign currency you plan to spend in and lock-in a good rate now.

open-account-and-exchange-1

3. NO Prepaid Business Cards 💳

Another feature that our business customers love, is the ability to issue pre-paid corporate cards in different currencies. So, instead of dealing with individual banks in separate countries, you can give all your employees their own corporate cards, each in its own currency and directly linked to your Revolut for Business account.

With Revolut for Business, no matter where your team needs to travel, you can rest assured knowing they will always have access to money in the currency they need. Best of all, you can easily track your team's expenses while abroad, set limits for their card usage and even block a card in the event of theft (or overindulgence – you be the judge!)

📖Hey there! 👋 Don't forget to Subscribe to our blog 👌🏻

4. NO Open API 👨‍💻

Our Open API is a blessing for anyone looking after your business banking transactions as it can help them automate anything and everything..

Do you need to bulk-pay all those suppliers once you’ve hit a certain date? Do you want to add 20 counterparties all at once? How about getting a list of transactions made to a specific type of payee, in a specific date bracket?

All of this is possible with the Open API - simply create and run a script for any of your repetitive tasks and you’ll get results with the click of a button. What is even greater is that since the API itself is open, you can use pre-made integrations and apply them to your workflow.

Over the last few days, we released two very popular integrations for Freeagent and Slack. So now, our business users are able to seemlessly import transactions in FreeAgent and streamline their accounting; or post directly into Slack channels to process optimisations and reporting.

5. POOR User Experience 🙋

Business banking still hasn’t caught up with today's standards in user experience, connectivity, security and many other areas that we, at Revolut, have made a mission to go in and disrupt.

Most of our business users have switched to Revolut because the high street banks were lacking in many areas, but where they've been let down the most, is with the slow and outdated online banking platforms. Let’s check out some use cases and see how Revolut makes it easy to do business banking on our platform.

Picture the scene: You’ve sent your team over to a conference in Brisbane to meet prospective clients, so you.......

Set individual spending limits

You had already set a limit of £2,000 for every employee on the trip, but Robert seems to have maxed out his card with all the restaurants and travel expenses – classic Rob! Here's how to increase his monthly limit using Revolut.

increaaselim-1

Make a Money Transfer

Some of your tech stopped working the day before your presentation and you need to make a payment to the local parts supplier in Brisbane:

sendmoney1

Simply enter their bank account and the payment will be on its way. What's more, if they're already a Revolut for Business user, they'll receive the funds not in minutes, or even seconds, but instantly.

📖Hey there! 👋 Don't forget to Subscribe to our blog 👌🏻

Block a Card

After meeting clients for lunch, one of your team members realised he forgot his wallet at the restaurant and his corporate card is probably in the hands of a wallet thief!

blocktest

With a traditional bank, you would have to call up the support centre, wait in line, answer a bunch of security questions, wait some more until you can finally have the card cancelled. In comparison, look at just how easy it is to block a card with Revolut for Business. And if the card is found, you can unblock it the same way!

Do you need more reasons to sign up to Revolut Business and start your free 14 day trial? Watch this space or subscribe now to learn more about our business accounts.

Sign-up to Revolut Business