Business credit card

31st November 2022: Today, Cashplus Bank, the leading digital SME bank, has announced the launch of next-generation credit card functionality for small businesses and sole traders.

The new, enhanced credit card, delivered as part of Cashplus Bank’s £5m BCR Capability and Innovation Fund grant commitments, employs Open Banking technology and other advanced features to create a highly flexible credit product that can offer guaranteed lower interest rates compared to customers’ existing credit facilities, cardless payments through the Faster Payments network and allows SME customers to change payment terms in order to manage cashflow.

Traditionally, SME credit cards supplied by high street banks offer uncompetitive rates and limited functionality. Cashplus Bank aims to offer maximum flexibility for small businesses to manage their finances and give them the best possible deal for small businesses through its key features:

• Guaranteed pricing: Many small businesses suffer from uncompetitive credit card pricing due to low competition in the market^[1], meaning customers can be “punished” for their loyalty to traditional banks. Using open banking technology, Cashplus can offer guaranteed savings on interest rates and help customers to get off overpriced deals.
• “Beyond the card” payments: With 40% of UK small businesses^[2] not accepting credit cards, many SMEs may face challenges when seeking to pay suppliers. As the only credit card in market with a sort code and account number, Cashplus Bank customers can use their credit “account” as a flexible payments tool, without the need for the card itself. This allows businesses to use credit for purchases with suppliers that don’t accept card payments through the Faster Payments network.
• Flexible repayment terms: Making sure not to slip outside of an interest free period on big purchases can be a major concern for businesses looking to invest. To help on cashflow, Cashplus now offers SME Buy Now Pay Later, this allows business credit card customers to increase that period on purchases from ‘up to 56 days’ to ‘up to 117 days’ for a monthly fee and to restructure their credit card spend as an instalment loan, either for a short interest free period or as a longer-term loan.

Customers will continue to benefit from other card features including automated payment tracking and spend categorisation powered by Google Maps, 1% cashback on purchases and transaction controls.

Paul Schooley, Chief Commercial Officer, Cashplus Bank: “We know that flexibility is crucial for small businesses, especially at a time when companies are facing rising costs. Business needs can change very quickly and the ability to manage cashflow by changing the terms of a loan or by using credit to cover a bill that can’t be paid by card could make all the difference to a growing SME.

UK small businesses provide the vast majority of private sector jobs and will be crucial to growing the economy out of recession, yet they continue to be poorly served by incumbent banks, so we want to offer flexible credit, tailored to their needs, and offer a better deal though our guaranteed pricing tools.”

 

[1] Cashplus research 2021 indicated that only one UK high street bank offered a business credit card open to applications from non-customers.

[2] Square research 2019.