Virgin Money launches new fee-free digital business current account for entrepreneurs
Virgin Money has launched a new business current account aimed specifically at small businesses. M Account for Business comes with no monthly fee and free digital transactions, and has been designed for entrepreneurs, start-ups and small businesses with an annual turnover of under £1m and who prefer to do their banking digitally.
The addition of the account strengthens Virgin Money’s business current account range, which supports companies as they grow, and joins its other existing accounts – the Business Current Account and Business Choice Account.
M Account for Business has a range of market-leading features, including the best cashback offer available -a rate of 0.35% on all debit card purchases until the end of January 2022 (with a £500 limit) and 0.25% thereafter (with no limit). In addition, all customers are eligible for an optional £1k overdraft.
Customers can manage their account via the Virgin Money app or online, and the account includes a range of money management tools at no extra cost to help businesses make more informed financial decisions through clearer insights and analysis of their financial position. These tools include invoice creation and management, budgeting and business spend tracking.
Virgin Money partnered with the Mastercard Business Savings programme earlier this year, and customers can access discounts through this programme when they use their M Account for Business debit card at selected merchants.
Customers can also take advantage of the bank’s tie-up with Virgin Start-up, a not-for-profit organisation which focuses on supporting business founders with expert guidance, funding and mentorship. The first joint business banking initiative by two Virgin companies was launched in July and includes free digital events designed to guide founders on specialist topics; free digital resources to tackle knowledge gaps; and discounted Masterclasses from business leaders.
Graeme Sands, interim head of business banking, at Virgin Money said: “The Virgin name is synonymous with entrepreneurship, so we wanted to develop a proposition that made business banking easy for start-ups needing their first business current account. Customers are able to do all their day-to-day banking via the app, but have our support if they need it.
“Digital-savvy businesses want an easy and efficient way to manage their finances and we have developed a mass-market, digital-first product that not only offers a range of real-world services, but also comes with no monthly fee. Costs are paramount in the early stages of a new business, so we’re supporting small businesses in a way that will help them grow. And when they are ready to move on, we have a range of products to support that next stage of their business journey.”
M Account for Business is the first business account in the market to have its terms and conditions accredited by Fairer Finance, reflecting the clear design and ease of understanding of product materials.
Sole traders and small businesses dominate the UK business landscape, with 95% of the 5.9m businesses employing less than 10 people. The Covid-19 pandemic has encouraged more people to pursue their passion – Companies House data reveals that there were 178,517 new incorporations between July and September 2021, adding to the 190,639 businesses that were incorporated between March and June 2021.
