You’ve likely heard of Business Revolut, the digital banking app that has taken the personal finance world by storm. With its sleek interface, low fees, and innovative features, Revolut has gained great popularity, particularly among tech-savvy individuals and frequent travellers. However, have you considered using Revolut for your small business? In this blog post, we will look into Revolut’s business offerings to help you determine if it’s a viable option for your business.
Understanding Revolut Business
Revolut Business offers a range of financial tools designed specifically for small and medium-sized enterprises (SMEs). It has features that goes beyond those of a basic digital wallet, including:
- Business accounts for clearer budget management.
- Multi-currency capabilities for easy international transactions.
- Competitive exchange rates for international payments and foreign income.
- Corporate cards for streamlined expense management.
- Integration with accounting software for seamless bookkeeping.
- Bulk payments for payroll or vendor payments.
- Invoicing tools for direct invoice generation and sending.
In essence, Revolut wants to handle all of your small business’ financial management needs in one place. But is it everything it’s made out to be?
Pros and Cons of Revolut for Small Businesses
Like any financial tool,Business Revolut has its advantages and disadvantages. Here’s a breakdown to help you weigh the options
Pros
- Low fees: Offers lower costs for international transactions and currency conversions.
- Easy international transfers: Manages multi-currency accounts and facilitates international payments.
- Digital tools and automation: Streamlines expense management and bill payments.Â
- Simplified integration: Connects to accounting software for smooth workflow and bookkeeping.
Cons
- Limited customer support: In-app messaging may not be ideal for urgent issues.
- Limited account features: Offers less complex financial services than traditional banks.
- Security considerations: Some businesses may prefer traditional banks’ established protocols.
- Auditor concerns: Concerned that its audit report by BDO may contain potential misstatements and IT control issues that could impede its application for a banking licence in the United Kingdom, Revolut is contemplating a change in auditors.
Revolut in Ireland
Revolut has gained significant traction in the Irish market, particularly among SMEs. Irish businesses find Revolut’s low fees and user-friendly app particularly appealing, especially for those with international operations or frequent currency conversions. Some of its most attractive features include:
- Cross-border transactions: Whether you’re paying suppliers abroad or receiving foreign income,Business Revolut’s competitive exchange rates translate to significant cost savings.
- Freelancer payments: Manage payments to international freelancers or remote team members easily and cost-effectively.
- Expense tracking: Issue corporate cards to your team and use the app’s expense management features to gain real-time insights into spending.
Understanding Revolut Fees
While Revolut is known for its low fees, it’s important to have a clear understanding of the different fees associated with its business accounts. Below is a summary of some of the major costs:
Free Plan:
The free plan is suitable for small businesses with low transaction volumes. It offers basic features like:
- A single free local currency account
- Limited free international transfers per month
- Standard exchange rates for currency conversion
- One physical debit card
Paid Plans:
Revolut offers several paid plans with increasing features and transaction allowances as you move up the tiers. Some common features of paid plans include:
- Multiple local and international currency accounts
- Increased free international transfer allowances
- Weekend currency conversions at interbank rates
- Priority customer support
- Additional physical and virtual debit cards
When choosing a plan, consider your expected transaction volume, the number of currencies you need to manage, and the importance of weekend currency conversions.
Transaction Fees:
You need to understand any potential transaction fees associated with Business Revolut. Here’s a breakdown:
- International transfers exceeding free allowances may be subject to minimal fees, depending on the amount and currency transferred.
- Currency conversions outside of interbank rates (weekend conversions on free plans) may have a small markup.
- Additional physical or virtual debit cards beyond the plan allowance may incur a one-time issuance fee.
Cost Comparison:
While the exact cost savings will vary depending on your specific banking habits, Business Revolut can often be cheaper than traditional business bank accounts. Here’s why:
- Lower international transfer fees: The free transfer allowances and competitive rates offered by Revolut can significantly reduce the cost of international transactions compared to traditional banks.
- Reduced currency conversion fees: Revolut’s interbank exchange rates and weekend conversion benefits on paid plans can save you money on currency conversions compared to traditional banks’ marked-up rates.
- Bundled features:Business Revolut combines features like expense management tools and multi-currency accounts into a single package, removing the need for separate subscriptions that traditional banks might charge for.
Transferring Money from Revolut to Bank Accounts
One common question you might have is whether you can transfer money from Revolut to a bank account. The process is relatively straightforward, but it’s important to understand the steps involved and any potential fees or delays.
To transfer money from your Revolut Business account to a bank account, you’ll need to initiate a transfer through the Revolut app or website. You’ll be required to provide the recipient’s bank account details, including the account number, sort code (for UK accounts), and IBAN (for international accounts).
Revolut usually processes these transfers within 1-3 business days, but the timeframe may vary depending on the destination bank and country. This is where your planning abilities come in, especially if you’re making time-sensitive payments or have urgent cash flow needs.
While Revolut generally doesn’t charge excessive fees for bank transfers, it’s important to look at the specific fees associated with your account plan and the destination country to avoid any unexpected charges.
Conclusion
Revolut has undoubtedly upended the banking industry, offering innovative solutions that meet the evolving needs of businesses and individuals alike. Business Revolut might be a desirable choice for you, especially if you value minimal costs, trade internationally, and find digital banking solutions convenient.
At Around Finance, we recommend that you take the following steps before making a decision:
- Compare Business Revolut with traditional business banking options: Analyse the features, fees, and customer service offerings of both options to determine the best fit for your needs.
- Seek professional advice: Our team at Around Finance can provide guidance based on your specific business circumstances and financial goals.
Start with a free trial: If you decide to try Revolut, take advantage of their free plan to explore the platform and see if it aligns with your workflow before committing to a paid plan.
FAQ
Yes, Revolut offers a free plan with basic features. Paid plans provide higher transaction limits and additional features.
While Revolut employs security measures, some businesses might prefer the traditional security protocols of established banks.
Revolut typically offers lower fees compared to traditional banks, especially for international transactions and currency conversions.
Potential drawbacks include limited customer support and regulatory concerns in some jurisdictions.
Yes, Revolut allows businesses to receive payments via bank transfers, in multiple currencies.
It’s always a good idea to consult with financial experts. Around Finance can help you assess if Revolut is the right choice for your specific business needs.
Still got questions? Let us know what you’re looking for.
