HSBC Business Banking Review in 2024

At a Glance — Pros and Cons

Pros	Cons
✔️ A variety of business banking options available including features to boost the level of your credit rating.	❌ After a promotional time ends, regular monthly fees and transaction costs will be reassessed, which may not be the lowest available.
✔️ Free banking services for new businesses and those looking to move.
✔️ Banking options include mobile apps, the web, voice calls, and physical locations.
✔️ Certain accounts may be synced with Xero, QuickBooks, or Sage accounting software.
✔️ Business loans, savings accounts, and overdrafts are all options. Foreign exchange and international payments are also possible.

HSBC Business Banking Review — Overview

What is HSBC business banking?

HSBC, one of the “Big Four” UK banks, provides financial services to small and medium-sized enterprises (SMEs), big corporations (MCs), nonprofits (NGOs), and educational institutions (universities).

It offers checking and savings accounts, as well as credit cards, credit boosting, loans, and financing for businesses. In about 10 to 14 business days, HSBC may replace a company's current bank account.

Options vary by account type and include: 

• 📖 A prepaid Visa business debit card.
• 📖 Organisational retirement plans.
• 📖 Overdrafts.
• 📖 Synced financial tools.
• 📖 Budgeting for free, on any device.

Introducing HSBC business bank accounts

Use these accounts to do business as usual. Get the flexibility of choosing between long- and short-term loans to suit your company's needs.

Get working capital to boost your cash flow or better manage your business's day-to-day expenditures, and use their loan and credit options to support capital projects and company expansion. Their experts have years of practice tailoring loan packages to the specific needs of businesses of all sizes and industries.

Who is HSBC business banking for?

From start-ups to established companies looking for funding: Making the most of surplus funds is crucial to the survival and expansion of any organisation. Knowing where money is kept isn't enough; you also need the means to get at it and put it to good use. 

You can put idle assets to work generating liquidity and safeguarding your company with the aid of their savings, equity, and investment options, which are tailored to help you combine balances for quicker, simpler access to cash when it's required.

How to open an account 📁

Having access to their business banking specialists and the streamlined features of their business bank accounts will make managing your finances a breeze.

Applying online or using their app is the quickest and simplest option for a single director company to move to them, and they’ll get started on your digital application within 48 hours.

Please request a callback if you operate a company with many owners who are interested in making a transition. Managers from their business development team will get in touch with you within 48 hours.

Once they receive all the information and documentation they require, they should be able to establish your account in seven to ten business days. The following are the requirements for opening an HSBC business account:

1. Apply
2. Show your ID and residency
3. Wait for approval

1. Begin the application online.

Applying for an HSBC business checking account is a simple online process. Call the bank and apply for a business checking account.

Some nonprofits may be eligible to apply online; if not, they may always give the bank a call. The HSBC UK website has further details.

You can only open an HSBC Kinetic account using their mobile app. You can't apply for HSBC Kinetic online or at any HSBC location.

2. Show your ID and current address.

If you want to open a business account with HSBC, you'll need to provide identification so the bank knows who you are. You'll need to upload a video of yourself taking a selfie if you want to open an HSBC Kinetic account.

• You may need to provide the following data to HSBC as part of your application for a business account.
• Complete residential and commercial addresses.
• Information about how to get in touch with you, including corporate and personal phone numbers and email addresses.
• The number assigned by Companies House (if relevant).
• Your anticipated yearly revenue.
• If you have an existing HSBC account, that number.
• Information about your bank account or credit card.
• How you come up with the money to start your company?

3. Awaiting approval

You will have to wait to find out whether you were granted an account after submitting your application. HSBC claims that the average time to start a Kinetic account is only two days. 

It usually takes around five business days to create a checking account, however, certain accounts may be opened the same day you apply.

HSBC Business Banking Review — What features do you get?

What features does HSBC business banking offer you?

1. Competitive business banking services 

The HSBC Business Account can help your company reach new heights in efficiency and security.

HSBC provides first-rate banking services, including international bank accounts, foreign currency, and credit cards, to companies across the world.

Simple login process

The convenience of account access is a top priority when selecting a financial institution. 

Any HSBC business account, including HSBC Kinetic, may be accessed in person at a branch or by phone. It's best to double-check the bank's website for the most up-to-date information on its hours of operation.

Depending on the kind of account you have with HSBC, you may also manage your finances via a mobile app. These apps include the HSBC UK business banking app and the HSBC Kinetic mobile app. Both applications may be downloaded on Apple and Google mobile platforms.

The HSBC UK and HSBC Kinetic websites both provide online banking, albeit at the moment, only Apple users may access their HSBC Kinetic accounts.  

Creating an account

The majority of HSBC Kinetic accounts are activated within 48 hours of application, and 39% of business banking accounts are established on the same day as application, as reported by HSBC UK.

FSCS coverage

The Financial Services Compensation Scheme (FSCS) protects HSBC UK. If HSBC UK were to ever go bankrupt, depositors would be immediately paid up to £85,000. Both the HSBC Kinetic account and the HSBC UK business account fall under this category.

This limit affects all of your accounts with that service. With HSBC UK, for instance, sole proprietors who maintain both a personal and a business account get a total maximum of £85,000. Over and beyond that, reimbursement is quite improbable. 

A limited corporation is an independent legal entity from its owner. A separate account will be set up for your company. The FSCS protection limit for your personal HSBC account will be different from the FSCS protection limit for your limited company business account. 

In addition, it is important to know that HSBC UK and First Direct share a banking licence and, by extension, FSCS protection. Your savings at HSBC and First Direct, if held in the same name, are insured up to a combined sum of £85,000. 

Visit the FSCS website to learn more about the programme and use the Bank and Savings Protection Checker to see how much of your money is safe with them.

Smartphone software

A simple mobile app for managing finances is a significant feature for company owners seeking a checking or savings account. HSBC offers mobile applications that may be used to access your business account. 

Customers of HSBC Kinetic have access to the specialised HSBC Kinetic mobile banking app. The HSBC UK business banking app provides business clients with access to their accounts. Both applications may be downloaded on Apple and Google mobile platforms.

2. International money transfers

The Treasury division of HSBC is one of the biggest in the world. They provide around-the-clock worldwide coverage and have an in-depth understanding of regional marketplaces to meet your needs. 

They are a frontrunner in the derivatives and foreign currency markets because they have access to a network of some of the most seasoned specialists in the world. You may get foreign currency in a variety of forms, including spot, forwards, and options.

HSBC also provides a variety of solutions to help you control risk. Both exporters and importers might benefit from using forwards and options to proactively manage their risks.

• Spot — Means to purchase or sell a foreign currency at the current market exchange rate.
• Forwards — Lock in today's exchange rate for use in a future currency purchase or sale.
• Futures — Commitment to purchase or sell an asset at a certain price.

3. HSBC business card program

Your business may save time and money by using HSBC Commercial Cards for all of its everyday and travel spending needs. Choose from a variety of card types and data analysis tools to meet the specific requirements of your organisation.

With an HSBC Commercial Card, you'll have better insight into and command over how much money is being spent on business travel, entertainment, and day-to-day operations. Our Commercial Card Programme offers a variety of tools to better manage your working capital, negotiate better terms with suppliers, and save expenses for businesses of all sizes.

You can manage cards, streamline procure-to-pay procedures, and create financial reports all from the comfort of your own desk with the help of our robust online administration and reporting tools.

• Increased oversight and management of daily and vacation spending with a corporate credit card.
• With a purchasing card, you can streamline your procurement procedures and keep tabs on your operating costs.
• The Central Travel Card is an all-in-one travel booking and payment system.
• Online ID Card: cardless payments let you streamline the administration of funds. 
• Use a corporate debit card to access your company's money anywhere, even in other countries.
• Online monitoring and reporting are made easy with the robust MiVison and Smart Data systems. MiVision and Smart Data, HSBC's robust online management solutions, make it simple to monitor cards and their spending.

4. Payments

HSBC provides a variety of cutting-edge payment, collection, and transaction banking services to companies.

They have a full suite of international collections services, and we back them up with a worldwide presence and local expertise.

As a consequence, HSBC may be able to assist you in streamlining not just the collection of money but also the processing of data and dissemination of information across the whole collecting cycle. As a result, they'll be better able to concentrate on initiatives that directly contribute to the success of your organisation.

Making local and foreign payments, both on paper and electronically, is streamlined with global payables. You will have better expenditure and payment management and less risk of fraud if you use their global payables solutions. Faster reconciliation further facilitates the simplification of payment processing.

• By determining in advance when you want to pay your bills, you can better manage your financial flow.
• By outsourcing your paper checks, you may save time and money by having them processed, printed, and sent in a single location.
• Make global payments quickly, safely, and cheaply with credit transfers by utilising electronic payment options instead of paper checks.

5. Funding & working capital

Improve your company's cash flow and trade efficiency by applying for a business loan or working capital. Appropriate for any company objective, whether it is self-funded expansion, debt reduction, market penetration, or balance sheet improvement.

Borrow money for various time periods. tailor-made answers to unique problems. With the help of professionals. Also features commercial banking services for managing cash flow, including trade and receivable financing solutions.

Avoid unexpected overdraft fees with their overdraft protection for commercial loans. Having a quick way to get to your money may greatly help with managing your money. And use LAP: Leverage the equity in your home or other property to get the capital you need for that new office or warehouse. 

The key to success in optimising working capital is getting greater control over cash flows, whether it is to self-fund expansion, decrease debt, increase company reach, or improve the balance sheet. 

This is why their trade and receivables financing solutions are so important to the smooth operation of your supply chain and company. In addition, they provide a comprehensive suite of commercial banking services focused on streamlining your company's handling of all cash transactions, both incoming and outgoing.

HSBC Business Banking Review — Buying Guide

Let’s explore choosing an account practically. 

What packages does HSBC offer?

The monthly fee is the most crucial factor for company owners when comparing business accounts. Instead of treating all business customers the same, HSBC provides many distinct account options, each with its own set of fees and features. 

Some examples are HSBC's Kinetic Current Account, which is geared toward lone proprietors and enterprises with a single director and shareholder. 

HSBC also provides the following business account options:

• Banking options for small businesses: for all other businesses.
• Small and medium-sized businesses with “Established needs” can choose that business checking account.
• Accounts designated for charity groups and other non-profits.
• Business bank account: for companies turning over £10 million or more.
• Businesses that want help with international trade might open a foreign currency account.
• Companies that keep client funds in currencies other than their own (such as euros or US dollars) need a “Client Currency Account”.

HSBC business banking fees

• 📖 Billing structure. After the introductory time finishes, a monthly charge of £8 will begin. If you deposit cash in person or over the mail, you will be assessed a 1.5% transaction fee.
• 📖 Money transfers across borders. You may send money to more than 60 different countries for as little as £17.
• 📖 Money from overseas. Any foreign currency account you create will have a monthly fee of £17.

Paying for HSBC's Kinetic service

• 📖 Billing structure. Current account maintenance fees are £6.50 per month after the first 12-month promotional period finishes. If you deposit cash in person or over the mail, you will be assessed a 1.1% transaction fee.
• 📖 International credit card purchases The withdrawal cost is 1.5% (minimum £1.75) of the GBP payment amount, and the foreign transaction fee is 2.75% (maximum £5,000).

Fees associated with standard commercial banking transactions.

Normal HSBC business banking services are not free of charge. Fees for making withdrawals and deposits vary by account type. 

Small business banking, commercial banking, and philanthropic banking all have different transaction fees. When you create an HSBC business bank account, you and the bank will negotiate the fees associated with the account.  Business banking customers of HSBC may see a complete list of transaction costs, including those for Post Office banking services, on the bank's website.

If you're interested in opening an HSBC Kinetic account, you can see the associated costs there. For the first 12 months, both the small business banking account and the business banking account have no regular transaction costs.

How safe is HSBC?

The Financial Services Compensation Scheme (FSCS) protects depositors of all banks and building societies licenced by the Prudential Regulation Authority. It's a separate service that safeguards your funds in the event that your banking institution fails. A Deposit Guarantee Scheme will reimburse you in this very improbable scenario.

Each individual and each financial institution are protected up to £85,000. Protection for joint accounts is capped at £170,000.

What about customer service?

HSBC's business checking account service received 4.5/5 stars and 97.2 per cent of customers said they would recommend it in a poll conducted by the independent 2023 Customer Satisfaction Awards. Users spoke about the bank's accommodating staff and straightforward mobile banking interface. Here are a few survey responses from business clients of HSBC:

The bank and the card are suitable for my purposes.

Excellent and dependable assistance for customers.

Good service — never had any problems.

Based on around 31,000 ratings and reviews in the Apple App Store, HSBC's Business banking app received 4.7 out of 5 stars. 4.3 out of 5 stars on Google Play from slightly over 4,000 reviews as of March 2023 (when the data was last updated).

Over 9,800 users have given the HSBC Kinetic app a review on the App Store, and they have given it an average of 4.8 stars. The ratings on Google Play are positive, with an average rating of 4.2 stars out of 5. However, out of almost 7,000 evaluations on Trustpilot, 89% have given HSBC just 1 star.

What other features set HSBC apart?

Among banks, HSBC is among the most recognisable and respected names throughout the globe. Established in 1865 to facilitate commercial transactions between Asia and the West, HSBC Bank now operates out of more than 7,500 locations in 87 countries across Europe, the Americas, Asia, the Pacific Rim, the Middle East, and Africa.

HSBC Bank, which places a premium on financial stability, client loyalty, and low overhead, chose London as the location for its international headquarters. Throughout its 150-year existence, HSBC Bank has connected its clients with a broad variety of development prospects.

Thanks to the Bank's accommodating services, companies around the nation are able to flourish, and individuals are able to realise their goals. To continue with the service theme, HSBC Bank UK handles commercial banking services designed to assist millions of consumers throughout the nation reach their financial goals.

HSBC Business Banking Review: The Verdict 

If you want a business account at one of the major high street banks, HSBC is a good option.

Business clients may use the Small Business Banking Account's convenient interface with accounting software like Xero, in addition to the mobile, internet, telephone, and branch banking options.

Different types of accounts are available for companies of different sizes, and HSBC even provides free banking for new firms and those transferring banks. There are account and transaction costs after the introductory period ends, so if banking expenses are a priority for your company, you may want to look elsewhere when comparing business checking accounts.

To begin, go to HSBC's website and open an account. If, after reading this evaluation, you still think the HSBC account isn't for you, there are plenty of alternative options available.

More about HSBC

HSBC's corporate banking services provide a wide variety of options for financing and borrowing. You may apply for company credit cards, loans, and other financial services.

Charities and other nonprofit organisations may also open bank accounts with them.

HSBC products and services

Overdrafts from HSBC are available to companies for up to £30,000.

Interest is payable at a variable rate of 12.85% EAR each year, and there is a yearly arrangement fee of 1.75% of the limit, with a minimum of £25 charged.

Money market accounts at HSBC

HSBC offers a variety of business savings accounts, including:

• Akin to the HSBC Kinetic current account, its savings account can be opened alongside the current account for as little as a pound. APRs are 1.03% to 1.12%.
• Business Money Manager Accounts typically provide three different interest rates, each of which is tied to a different savings goal. Interest rates range from 1.03% to 1.11% AER, with the lower rate applying if you remove money within 30 days and the higher rate applying if you don't touch your money for 30 or 60 days. The minimum deposit requirement is zero.
• Money market accounts for enterprises There are three kinds of savings accounts available to enterprises, each requiring a £50,000 initial deposit:
• Instantaneous access savings account with no fees or minimum deposit requirements; sometimes known as a “call account”.
• In another kind of instant-access account, the notice period for withdrawing funds ranges from one week to six months.
• Finally, with a fixed account, you can put money down for a certain amount of time, anything from one day to five years. Until the end of your specified time period, you cannot make a withdrawal.