Business credit cards can make managing your company’s finances and cash flow a lot easier. Many high street banks provide them with their business accounts, while other companies offer standalone cards. One such example of the latter is Cashplus. Although they have several personal and business account options, they also offer a credit card. We look at everything you need to know about the Cashplus business credit card.
Quick Look – Pros & Cons
Firstly, let’s start by looking at some of the benefits and drawbacks of using the Cashplus business credit card:
- No monthly fee for having the card.
- Up to 56 days of interest-free credit.
- Credit limit of up to £3000
- Up to four cards can be issued on the one account.
- Rates of 29.94% (variable) p.a. on purchases and 34.94% interest on cash advances seem a little high.
- Foreign usage fee of 2.99%
- No extra perks or rewards for using the card.
Overall, there are some positives and negatives, without any huge headlines either way.
What is the Cashplus Business Credit Card?
Much like any other credit card, the Cashplus business credit card is a means of giving you more control over your finances and expenses. It’s designed with companies in mind and has a credit limit of up to £3000. Each month, you can make purchases up to your limit and must repay the amount within the designated period of time. Any outstanding balance at the end of your interest-free period will incur interest charges.
This is very much a short-term line of credit. If you’re looking for something longer term, then a bank loan is probably more suitable.
How does it work?
Currently, the Cashplus credit card is open via invitation only. You’ll receive either a letter in the post or an email. If you get an email, all you need to do is follow the link, and fill out your personal and company details. Those who receive a mail invitation need to visit the Cashplus sign-up page and provide their details.
As is standard, you’ll have to read the Summary Box and Pre-Contract Credit Information before you tick the boxes and send off your application. Cashplus will then assess your details, run a credit check, and decide on whether you’re eligible and how much your credit limit will be.
There are a few requirements you have to meet in order to apply:
- You’re the Director of a Limited Company and aged over 18 years’ old.
- Your company is registered in the UK with Companies House
- You’re a UK resident without any CCJs or IVAs
What Features Does the Cashplus Business Credit Card Have?
The Cashplus credit card isn’t exactly feature-rich compared to some others we’ve seen. However, it is a fairly solid offering that does all it needs to. Below, we’ve highlighted the main features you can expect from it:
- It’s possible to get interest rates as low as 19.9% p.a. variable on purchases, although this depends on your circumstances.
- The card offers up to 56 days’ interest-free credit. This is only provided if you pay off your balance in full each month
- There are no annual or monthly fees, only interest fees where applicable.
- Your credit limit will be reviewed after six months to see if you’re eligible for a higher one.
- You can choose from flexible repayment options.
- The card you’ll get is a contactless Mastercard.
- Using the app, you can get itemised billing for tracking your business expenditure.
What are the fees?
Although there are no monthly usage fees for the Cashplus credit card, there are some other fees that apply depending on how you use it. These include:
- 2.99% on all foreign transactions.
- 3% (with a minimum of £3) on cash withdrawals.
- Late payment fees of £12.
- Duplicate statement fees of £5.
- Exceeding limit fees of £12.
There are no fees for additional cards or if your account is dormant.
Who is the Cashplus Business Credit Card For?
Given the maximum credit limit of £3000, it seems that the Cashplus business card is aimed primarily at small and medium-sized businesses. You have to be a director of a limited company to apply for one, so sole traders and partnership owners need to look elsewhere. However, if you own your own business and want to have greater control over your expenses and have a short-term line of credit, this card is for you.
What are the drawbacks of using the card?
One of the biggest issues we have with the Cashplus business credit card is that there aren’t many amazing incentives to use it. Other cards we’ve seen, particularly from bigger banks, have things like insurance offers and cashback on purchases to tempt customers in. This is a no-nonsense card for better or worse.
Some of the fees for the Cashplus card are a little on the steep side too. If you’re not eligible for the 19.9% interest rate on your card, you’ll be left paying 29.94% if you don’t pay off your balance each month. The 56-day interest-free period is a nice incentive, but it only applies to those who pay off their balance in full each month.
How Safe is the Cashplus Business Credit Card?
Cashplus takes its customers’ safety seriously. As they outline on their website, they are ‘authorised, regulated and licensed by the FCA, and the Cashplus Group directly holds all licences and permissions to issue and manage both our consumer credit and e-money products’. This means that they closely regulated and that it’s safe to take out a card with them. The Cashplus Business Credit Card is also a Mastercard, which gives you all the assurances you need in terms of safety.
Cashplus Business Credit Card Verdict
Although there’s nothing much that’s ground-breaking about this business credit card, it does the basics well. If you’re lucky enough to receive an invitation to open an account and you’re looking for a short-term line of credit, Cashplus offer a good option. Don’t expect any bells and whistles, but do take advantage of the 56 days of interest-free credit.