TotallyMoney launches new Cashplus credit card to close the £6bn SME lending gap for UK’s 3.2 million sole-traders
By TotallyMoneyMar 2nd 2022
TotallyMoney, the credit app which helps everyone move their finances forward, has partnered with Cashplus, the leading SME-focused digital challenger to launch its new, market-leading cashback credit card.
- The Cashplus card for entrepreneurs and independent traders offers limits of up to £5,000 and 56 day interest-free repayment periods, enabling greater financial flexibility
- It comes with zero monthly or annual fees, and with 1% cashback customers can earn while they spend
- Guaranteed limits and guaranteed rates mean applicants know exactly how much they’ll be able to borrow, and at what interest rate, before they apply
- With 65% of new UK businesses being refused credit*, API-enabled eligibility checking will mean that customers will now know their chances of acceptance, removing guesswork and improving transparency
2021 saw the number of sole proprietorships decrease by 11% (382,000)**, with soaring inflation putting many more at risk of closure in 2022.
A more transparent product for those often left in the dark
TotallyMoney and Cashplus announce the launch of a new credit card to market, in a bid to help close the £6bn SME lending gap† where 65% of new businesses are refused credit.
Enabled by an API integration between the two parties, the product features guaranteed rates, guaranteed limits, and eligibility checking. This means applicants will know exactly what they’re applying for and their chances of acceptance.
The UK’s 3.2m sole proprietorships‡ make up 56% of the total private sector business and are often deemed “too risky” by other mainstream lenders. The new Cashplus card offers limits of up to £5,000, with zero monthly or annual fees, and 1% cashback on purchases. Customers will also receive up to 56 days’ interest-free credit, as long as they pay in full each month.
This new, transparent, FCA regulated credit option comes at an important time with inflation hitting a 30-year high, following the covid crisis which is estimated to have cost SMEs £127 billion§. This coincided with 11% of the UK’s sole proprietorships closing in 2021.
Alastair Douglas, CEO of TotallyMoney comments:
“We’re very excited to launch the new Cashplus card, whose target customers are often overlooked and neglected by many mainstream lenders. Sole traders make up more than half of total private sector businesses, so it’s essential that they’re given the support they need.
“This is especially true now, with soaring inflation impacting everybody, from consumers, to small business owners, to big retailers. Nobody’s safe from increasing costs, and the pressure this can add to people's finances.
“Integrating the Cashplus card via an API has meant we can enable features such as guaranteed rates, and limits. Along with pre-approval, customers will know exactly what they’re applying for, and their chances of acceptance.
“At TotallyMoney we’re on a mission to help everyone move their finances forward. By partnering with Cashplus Bank to bring a new product to an often overlooked audience, we’re moving a step closer to our goal of enabling fintech for everybody.”
Rich Wagner, CEO, Cashplus, commented:
“Our 1% reward credit card is a powerful tool for the sole-traders that play such an important role in powering the UK economy yet are too often overlooked by high street lenders, particularly as they work to get their business up and running. This partnership with TotallyMoney will allow us to reach an even wider audience of entrepreneurs and independent traders and marks another step in our drive to close the UK’s £6bn SME lending gap.”
* What is the future of SME banking in the UK?
† Third party consultancy research commissioned by Cashplus (2021)
About the card:
The Cashplus card offers a credit limit of up to £5,000, with no monthly or annual fees. Customers can earn 1% cashback on eligible purchases and up to 56 days’ interest free credit . All transactions use Cashplus’s location-based software to provide highly accurate itemised billing to make it easier to track expenses.
About Cashplus Bank:
Cashplus is a leading UK challenger bank with a 15-year track record of digital innovation, dedicated customer service and strong financial performance. The company was granted a UK bank licence in February 2021. A true fintech pioneer, we offer fast, smart, simple banking services for the entrepreneurs, independent businesses and hard-working consumers that power the UK economy yet are too often overlooked by high street banks. Since 2005, we’ve created easier ways for more than 1.6m customers to pay, bank and borrow through our user-friendly digital platform, delivered a string of fintech firsts and built a sustainable, growing business providing more than 250 jobs in the UK with locations in London, Liverpool and Birmingham.
- 1.6m accounts opened
- £20bn in payments processed
- 10 years + of strong growth
- £640m total lending
- 9 straight years of operating profit
Advanced Payment Solutions Limited (APS), trading as Cashplus Bank, is registered in England and Wales at 6th Floor, One London Wall, London EC2Y 5EB (No.04947027). APS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Number 671140.
For more information, please contact the press team
TotallyMoney is the credit app on a mission to help everyone move their finances forward.
With over four million customers and a focus on the,one in three UK adults financially under-served by the credit industry.
TotallyMoney believes people’s financial data should work for them, and not against them. Its service provides a free live credit report and score to help customers understand their financial position, and personalised recommendations so they can start creating financial momentum.
TotallyMoney works closely with leading lenders, to ensure eligible customers are matched with the right products, underpinned by its robust data, product and tech capabilities.
TotallyMoney is regulated by the Financial Conduct Authority (FCA).