TotallyMoney and Cashplus today announced 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.”
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