If you are doing business in the UK, both Anna Money and Revolut Business could help you to better manage the money side of your company. While both platforms are designed specifically for businesses, they have different feature sets that aren’t altogether similar.
Compared to a regular business bank account at a high street bank, both digital bank accounts have some advantages. Anna Money has loads of features that make it a good choice for a small business that is operating mostly in the UK, and Revolut Business is designed with international operations in mind.
Like all neobanks, Anna Money and Revolut Business offer their clients easy to use digital interfaces, with options for both iOS and Android.
Depending on how your business operates, either Anna Money or Revolut Business could make sense as a new, money-savings banking option. Like most digital banks, both platforms do have some limitations, which may or may not be an issue for your company.
Let’s dig a little deeper into what these platforms do an don’t do, so you can decide if one of them could be helpful for your business.
Anna Money vs Revolut Business—What do They Do?
Anna Money and Revolut Business offer their clients a digital account that can act as a replacement for a traditional bank account.
Although they do offer debit cards, neither platform is actually a UK regulated bank. Revolut is close to achieving a banking license in the EU, but Anna Money is strictly a digital platform that isn’t working to achieve any sort of banking accreditation in the UK.
While they aren’t UK registered banks, Anna Money and Revolut Business will provide your business with unique SWIFT account numbers, as well as a debit card that can be used internationally.
Revolut Business extends its service to both SWIFT and IBAN numbers, as it is fully integrated with the EU banking system. There are a few other overlapping features between the two platforms, but let’s drill down into what makes them both unique, and potentially helpful to your company.
Anna Money was founded in the UK, and in order to use the platform, you must be the registered director of a UK company. Anna is actually an acronym that stands for Absolutely No Nonsense Admin, which is a pretty good way to describe the platform.
If you are legally doing business in the UK, and you need to have a no-frills current account for your company, Anna Money offers your company a lot of functionality for a small monthly fee (in some cases it is actually free to use).
So what does Anna Money offer?
Probably the most important thing that Anna Money offers its clients is a current account, with both electronic transfer options and a MasterCard. The amount of money that can be stored and used with Anna Money depends on the level of account you have with the company.
The pricing for Anna Money’s services is reasonable as well.
Here are the account types that Anna Money offers, and how much they cost on a monthly basis:
- Sole Trader/Growing LTDs – £5 per Month
- LTDs with Stable Turnover – £11 per Month
- LTDs with Monthly Turnover of more than £100,000 – £49 per Month
- Sole Trader&Businesses with £0 Turnover – £0 per Month
Anna Money delineates Growing LTDs from LTDs with Stable Turnover at the £2000 level (turnover per month), which is where your business has to upgrade to the £11 per month plan. Once you reach this threshold your company will be able to upgrade the amount of money it can hold in its current account, and spend via the Anna Money MasterCard.
The system that Anna Money uses to qualify its clients for higher balances has five tiers. The lowest tier is Tier A, which is where all Anna Money clients will start.
Here is a list of the tiers that Anna Money uses:
- Tier A will permit a maximum card balance of £1,500. The inbound and transaction limit is £2,000 and the outbound limit is £1,000 per month. This may not seem like a lot, but as soon as you activate your company’s card, your account will be bumped up to…
- Tier B will allow you to send a receive a total of £40,000 per month and store a maximum of £25,500 on your debit card. This should suffice for most small businesses, but the next tier will give you even higher limits.
- Tier C/D and E all have increasingly higher limits and top out at a monthly transaction volume of £500,000. Tier E accounts can store up to £700,000 on their debit cards, and higher limits are available on a per-case basis.
What Else Does Anna Money Do?
In addition to allowing you to send, receive and store money with your company’s Anna Money account, you will be able to use the platform for invoicing clients.
The platform uses Machine Learning to help you chase down unpaid invoices, and will give you an easy way to keep track of all the unpaid invoices you have outstanding.
The Anna Money debit card allows ATM withdrawals as well, so you can have easy access to your business’ cash if need be. Anna Money will also allow your company to try the platform out for three months for free before you decide if it is right for the job.
Anna Money—The Rundown
Anna Money is purpose built-for UK-based SMEs that need a simple banking solution. It has all the basic features that a business bank account would offer your company and none of the fluff that could end up complicating your life.
The fees to use the platform are reasonable, and the extra invoicing tools that it created are a bid bonus for busy businesses that need to cut down on bookkeeping. The only real downside to Anna Money is that the platform is only available to UK businesses.
In terms of customer service, Anna Money gets good reviews. Clients can contact Anna Money support staff 24/7 via a dedicated chat system, though the waiting times can be a little more than some business owners would prefer. Regardless, the customer support from the platform is at least on par with a high street bank and may be much better.
Businesses that need more complicated banking services, especially lending facilities won’t be able to use Anna Money. The company offers no loans of any kind and is also not ideal for UK businesses that operate internationally.
For more information, Read our Full Review.
Revolut Business is the Revolut platform that is built for businesses that need to operate in numerous countries and currencies. It is easy to send money just about anywhere with Revolut Business, and much like Anna Money, Revolut Business gives its clients a debit card they can use to access their funds anytime.
If your business has clients spread out all over the world and needs to operate in more than one currency, Revolut Business is probably going to be much cheaper than a high street bank. Your business will get access to ultra-low international transfer rates, and also have the ability to hold money in multiple currencies.
All of Revolut Business’ features can be accessed from a mobile app that can be installed on both iOS and Android devices, and a Revolut Business account will act as a UK bank account and an EU bank account.
Revolt Business is Made for the International Market
The real selling point for Revolut Business over a high street bank or other business-focused neobank is how it treats international transfers, and foreign currency bank balances.
Revolut Business will allow your company to hold money in numerous currencies, including USD, GBP, EUR, AUD, CAD and others as well. If you receive a payment in a currency you don’t want to hold, there is no (direct) fee to exchange it to another currency at market rates. The same thing goes for international transfers, which can be made using the platform at market rates.
Revolut Business also offers a multi-access account that allows you to add employees so that they have authorized access to the business account. For larger companies that need to have more than one user on an account, this is a super handy feature.
While Revolut Business doesn’t support invoicing in the same way that Anna Money does, it does feature integration with Xero, Slack, and FreeAgent, all of which are commonly used by businesses today. Your business can also set up bulk payments from the interface, which could cut down on the amount of work you or an employee has to do on a weekly or monthly basis.
Revolut Business offers a lot of functionality, and it has a plan to fit just about any business. Here are the plans that Revolut Business offers, and what they cost on a monthly basis:
£0 Per Month– The Free Plan
The free plan from Revolut Business will give you 5 free domestic transfers per month. The company defines domestic as UK-UK or EU-EU, and after you get through the free transfers, you will be hit with a £0.20 charge for every further transfer.
There are no free international transfers included, and you will be limited to adding 2 employees to the plan. Your company will pay £3 for international transfers with this plan, which is still a pretty good deal. Extra employees will cost £5 per employee per month.
Not a bad offer for free, but it probably isn’t going to be enough for most companies. All Revolut Business plans include free transfers to other Revolut Business users, but this may not mean much to most businesses.
£25 Per Month– The Grow Plan
For £300 per year, your company will be able to make 100 local transactions with Revolut Business, and 10 international transfers before incurring additional costs. Your company can add 10 employees to the Revolut Business account, and do £10,000 worth of FX-free transfers on a monthly basis.
The Grow Plan will also give your company access to 24/7 support from the Revolut support staff, which the free plan doesn’t include.
This plan is probably a decent choice for most businesses, as additional transfers can be purchased at fixed rates if needed. Any business that makes regular international transfers will pay more in fees at a regular bank, regardless of where the money is going.
£100 Per Month– The Scale Plan
The Scale Plan from Revolut Business pumps the number of local transfers up to 1000 per month, and international transfers to 50. Your company will be able to do £50,000 worth of FX-free transfers on a monthly basis as well.
Clearly, the Scale Plan is intended for larger businesses, and it allows your company to add up to 50 employees to the account. The annual fee for this plan will be £1,200, which isn’t exactly inexpensive. For companies that move a lot of money around internationally, it could make sense.
£1,000 Per Month– The Enterprise Plan
The Enterprise Plan from Revolut Business removes all limits and allows you to add as many employees to your account as you like. Your company can also make as many transfers as it wants to, both domestic and international.
While there are no limits whatsoever, at £12,000 a year, the Enterprise Plan isn’t cheap. On the other hand, for a business that needs loads of flexibility when it comes to dealing in global currency markets, it could make sense.
Revolut Business – The Rundown
Revolut Business can act as a current account for businesses that need to have access to global payments in a number of currencies. It can be used by companies across the EU and UK and offers some unique features at good rates.
Like many neobanks, Revolut Business gives its clients a no-frills platform that is operated via an app and doesn’t offer any kind of borrowing or physical locations. Revolut Business isn’t a licensed bank in the UK, although it does have to operate under regulations set out by the Financial Conduct Authority (FCA).
The features that Revolut Business offers its clients aren’t going to be right for every business. If a company does a lot of with numerous currencies or has to make international payments, Revolut Business could make a lot of sense. The fees that high street banks charge of international transfers are generally high, which makes Revolut Business’ fee structure attractive.
Aside from the international capabilities, the bulk payment feature, and the ability to add numerous employees to a Revolut Business account, the platform is pretty simple and geared toward making and receiving payments.
For more information, Read our Full Review.
Which Platform Makes Sense for Your Business?
Anna Money and Revolut Business are both interesting platforms, but there is very little overlap between the two companies. Anna Business is built for companies that are operating in the UK, and need to have a simple solution for billing and payments.
Revolut Business is a platform that excels in providing excellent access to international markets and allows its clients to side-step the fees that most major banks charge on international transactions. The kind of business that your company does will determine if either one of these platforms will be a good fit and if it is worth paying for.
One of the nice things about both platforms is that there is a free account option, so you can open an account, and get a feel for the app that you will have to use. If you don’t like the feel of an app, it doesn’t cost you a thing to stop using it and find a different solution.
Neobanks like Anna Money and Revolut Business offer companies new options for dealing with money, and they both have features that could make them useful for your business. High street banks don’t generally offer much in the way of integration with digital platforms, or invoicing services.
If you have an SME in the UK, Anna Money is an interesting platform to consider using. The fees that it charges are low, and your company will be able to use a straightforward platform that does all the basic things that a bank account would. If you are feeling frustrated with your high street bank, take a deeper look at what Anna Money does.
Revolut Business is worth looking at if your company does a lot with international payments, or needs to hold flexible, multi-currency accounts.
There is almost no way that your existing bank can match Revolut Business’ fees on international transfers, or FX rates. Revolut is close to securing a banking license in the EU, which makes it more attractive from a security standpoint, especially for EU-based customers.
Anna Money and Revolut Business are both innovative companies that could make your professional life a lot easier. If you feel comfortable using an app to manage your company’s money, they are worth learning more about!
The post Anna Money vs Revolut Business: Which is the Best Business Account? appeared first on Money Check.