The rise of freelance work and self-employment has created unique challenges that traditional banks can often overlook. These institutions often fail to accommodate the irregular income, complex tax needs and limited credit options faced by independent contractors. Enter, Lili.

Lili is a specialized digital banking platform designed specifically for independent earners. It combines personal and business banking features with tools that address the distinct needs of freelancers, gig workers and small business owners. If this sounds like you, this Lili business banking review will help you decide if it’s time to switch to this banking alternative.

About Lili Business Banking

Lili is a financial technology company addressing the banking needs of freelancers, gig workers and small business owners. Unlike traditional banks, Lili tailors its offerings to the flexible and fast-paced demands of independent earners and entrepreneurs. Launched with the goal of simplifying financial management for self-employed individuals, Lili provides digital banking solutions that integrate personal and business finances, all through a mobile-friendly platform. 

Lili’s target customers tend to be freelancers, side hustlers, gig economy workers and small business owners. Their services target customers who need to manage taxes, track expenses and access banking tools tailored to their nontraditional income streams. By offering features like automatic tax savings, expense categorization, invoicing and tools to track cash flow, Lili empowers these users to take control of their finances without the trappings of traditional business banking. 

Lili Business Banking Review: Features and Pricing

Lili offers tiered options that range from a free basic account to advanced interest-earning accounts that provide custom reporting. All users can benefit from features that simplify expense tracking, invoicing, tax management and savings, all through a mobile app. Lili’s accounts are structured to offer flexibility and scalability, allowing customers to choose from four tiers depending on their needs and budget.

Features

  • Expense management: Lili automatically categorizes expenses, making it easy to track spending and organize tax-deductible expenses. Users can divide transactions into categories to streamline tax filing and target maximum deductions.
  • Invoicing and payment tracking: Lili’s invoicing tool allows users to send professional invoices directly from the app, simplifying payment collection and tracking. This tool is particularly useful for freelancers and independent contractors.
  • Tax tools and savings: Lili includes an automated tax-saving feature, where users can set aside a portion of their income into a separate tax bucket. This helps prepare for quarterly tax payments without the stress of manual budgeting.
  • Cash deposits: While Lili is primarily a digital bank, it allows users to make cash deposits at Green Dot locations. However, there’s a fee associated with these deposits, making it more cost-effective for customers who infrequently handle cash.
  • Early access to payments: Lili users on higher-tier plans can receive ACH payments up to two days early, providing quicker access to funds from clients or other income sources. This is particularly helpful for managing cash flow in freelance work.
  • Interest on savings: With certain account types, Lili offers an APY of 3.65% on balances up to $100,000, allowing users to grow their savings while managing their business finances in one place.
  • Accounting software: Lili comes with integrated accounting software. Organize your business transactions by managing income and expenses, automate bookkeeping with predictive transaction and capture receipts and notes for expenses. You can also access enhanced reporting with on-demand profit/loss and cash flow statements, and auto-scan bills to pay them instantly.

Account Types and Pricing

Lili’s four-tier structure allows freelancers and small business owners to choose an account that fits their financial needs.

  • Lili Basic: This is Lili’s free option. It’s ideal for freelancers who need essential banking features. It includes expense tracking, tax-saving tools and access to Lili’s invoicing feature. However, it does not include early payment access or interest on savings.
  • Lili Pro: Priced at $15 per month, Lili Pro adds more features. In addition to Lili Basic’s offerings, Pro users can receive early access to ACH payments and earn 3.65% APY on balances up to $100,000, which allows users to grow their funds while maintaining liquidity.
  • Lili Smart: This account includes everything in Lili Pro, with additional features designed to support expanding businesses. The Smart plan builds on the Pro’s functionality by offering detailed reporting and enhanced analytics. It’s a great choice for users needing more insights into their spending and cash flow, and normally costs $35 per month.
  • Lili Premium: Lili’s top-tier plan includes all the benefits of the Smart plan, as well as priority customer support and advanced analytics. This option is ideal for established freelancers or small business owners who require comprehensive support and more sophisticated financial tools. This is typically priced at $55 per month.

Lili Business Pros and Cons

As with any financial product, there are both benefits and limitations to consider.

Pros

  • Freelancer-focused tools: Lili is tailored for self-employed individuals. Features like automatic expense categorization, invoicing and tax-saving options streamline your financial management. They can help users maximize deductions and simplify tax preparation.
  • Flexible account tiers: With four account types—Lili Basic, Lili Pro, Lili Smart and Lili Premium—Lili offers flexibility to match users’ needs and budgets. This tiered structure allows freelancers and business owners to upgrade as their needs grow.
  • Early access to payments: Users in the Pro tier and above can receive ACH payments up to two days early, enhancing cash flow and making it easier to manage expenses and income timing—a valuable perk for freelancers with irregular income.
  • High APY for savings: Lili offers a competitive APY of 3.65% on balances up to $100,000 for Pro users and above, helping customers grow their savings while keeping their funds easily accessible.
  • Digital convenience with cash options: Although Lili is a digital-only bank, users can deposit cash at Green Dot locations nationwide, providing flexibility for those who handle occasional cash transactions.

Cons

  • Limited physical banking options: As an entirely digital bank, Lili does not provide branch access, which might be a drawback for users who prefer face-to-face banking or need services not available online.
  • Cash deposit fees: While Lili allows cash deposits via Green Dot, these deposits come with fees. This can be a disadvantage for businesses or freelancers who frequently handle cash, as these fees can add up over time.
  • Monthly fees for Pro and higher tiers: Lili’s Pro, Smart and Premium accounts come with monthly fees. These start at $15 per month for Pro. While the features may be worth it for some, freelancers or small business owners on tight budgets might find the fees prohibitive.
  • Mobile-only platform: Lili operates solely through its mobile app, without a desktop interface. While convenient for users on the go, this limitation could be inconvenient for those who prefer managing finances on a larger screen.

Lili’s pros make it a strong choice for freelancers and small business owners who prioritize mobile banking, tax tools and flexible account options. However, the lack of physical branches, cash deposit fees and mobile-only setup may not suit everyone’s preferences. 

North One: A Better Digital-First Alternative

North One is a compelling alternative to Lili. While both banks cater primarily to freelancers and small business owners, their offerings differ significantly in functionality and user experience.

North One distinguishes itself with its robust financial management tools. The platform includes features like expense tracking, budgeting and invoicing capabilities that integrate seamlessly into one cohesive interface. For instance, North One allows users to categorize their expenses in real-time, providing a clearer picture of their financial health and helping them stay organized for tax season. In contrast, while Lili also offers financial tools, it primarily focuses on basic banking services without the depth of budgeting features that North One provides.

In terms of fees, North One operates on a straightforward no-monthly-fee model. This fee grants access to unlimited transactions, making it a more budget-friendly choice for businesses that require frequent banking activities. Lili, on the other hand, offers tiered accounts with varying monthly fees and limits on certain features. For example, while Lili’s Basic plan has no monthly fee, it offers limited functionality compared to North One’s all-inclusive package. This tiered pricing can lead to confusion and additional costs for users who might find themselves needing features only available at higher tiers.

Both banks emphasize the importance of customer support, but North One stands out with its responsive customer service that caters specifically to business needs. Lili’s support, while generally reliable, has received mixed reviews.

While Lili may appeal to those who seek a simple, no-frills banking option, North One presents a well-rounded alternative for business owners who require financial tools to effectively manage their operations. With its comprehensive features, straightforward pricing and responsive customer service, North One is a smart choice for entrepreneurs looking to streamline their financial processes.

Who is Lili Business Banking Best For?

Lili demonstrates a clear understanding of what freelancers and independent contractors need from their banking partner. Its standout features—automatic expense categorization, tax savings tools and competitive APY rates—address the pain points of self-employed professionals. While the platform excels in freelancer-focused tools, potential users should weigh limitations like fees and the absence of physical branches.

The tiered pricing structure offers flexibility. However, users should carefully evaluate whether the additional features in Pro, Smart and Premium accounts justify their monthly costs. For those who primarily operate digitally and value automated financial management, Lili offers a compelling banking solution. However, those requiring frequent cash transactions or traditional banking services might find better alternatives in platforms like North One.

Frequently Asked Questions

Is Lili Bank good for business? 

Lili is a strong choice for freelancers, independent contractors and small business owners who prioritize tools specifically designed for managing business finances. With features like automated expense categorization, invoicing and tax-saving capabilities, Lili can simplify financial tasks for self-employed individuals. Additionally, the tiered account structure allows users to upgrade as their needs grow. However, its mobile-only platform and limited cash deposit options may be less ideal for users who frequently handle cash.

Is Lili Bank a real bank? 

Lili partners with Sunrise Banks N.A. to provide secure banking services. This partnership means that Lili accounts are FDIC-insured up to $250,000—the same level of security as traditional banks. While Lili operates as a digital-only platform without physical branches, it meets all the regulatory requirements of a legitimate financial institution through its partnership.

Does Lili have a monthly fee? 

Lili’s fee structure depends on the account tier selected. The Basic account has no monthly fee, making it a smart choice for freelancers or small business owners just starting. For users needing more advanced features, the other account options come with additional fees that offer benefits like tax optimization tools and higher APY on savings. These fees allow users to choose the level of service and features that best meet their business needs.

How much can you deposit in a Lili business account? 

Lili’s cash deposit limit varies by deposit location. Deposits made through Green Dot locations are capped at $1,000 per day, with a maximum of $9,000 per month. However, Green Dot may charge a fee for this service. For electronic transfers, including ACH and direct deposits, there are no stated deposit limits.