- Fast online application
- Faster payments in and out
- Business expense cards
- Integrates with accounting software
- FSCS insured up to £85,000
It’s not always easy getting a business bank account, especially if you have a poor credit score or you’re a startup. Cashplus Bank is targeting (in a good way) exactly these individuals and businesses and giving them a chance to have a proper bank account.
Let’s see what they have to offer and if everything is that rosy. But first, here’s our short verdict:
Cashplus is a fintech veteran that has quite a few benefits for personal and business users but at £69 per year and numerous fees for basic things it got overtaken by newer competitors in the digital banking sphere.
About Cashplus Bank
This fintech pioneer has been on the UK financial market since 2005 when it was founded by Richard Wagner, who is still the company’s CEO.
The company targets small businesses with less than ten employees with their business account.
In 2021, the fintech became a full-fledged bank, and the FSCS scheme now protects its deposits for up to £85,000.
Why is Cashplus special?
They were the first to launch a general-purpose prepaid card in the UK and the first to launch a credit builder program in Europe.
In 2013, the company was the first to offer online business current accounts that guaranteed all UK-based businesses an instant online decision, regardless of business size, with or without trading and credit history.
By 2021, the digital bank was in its ninth year of operating profit and had 1.6 million customers with 2.2 million cards issued. They also processed more than £20 billion in payments.
Pros and cons
- Easy to apply and get accepted
- Free business card
- FSCS protected
- EUR and USD accounts
- Up to 20 cards
- Deposit cash at Post Office
- Expensive incoming payments from abroad
- No check deposits
- Issues with blocking customer accounts
- £69 annual account fee
- £15 per inbound international payment
- Free card (additional ones £5.95)
- Free UK purchases
- Electronic Payments and Transfers (first three free, then £0.99 each)
- Free direct debits
- £2 ATM withdrawal, £3 abroad
- 0.2% fee for depositing with cash at Post Offices
- Free deposits by bank transfer
Who can open a Cashplus business account?
UK residents over the age of 18 with a business based in the UK can open a Cashplus business account.
The company guarantees that you’ll open a bank account and that you’ll get a debit card as long as they can verify your details.
How to open a Cashplus business account
To open a Cashplus business account, you’ll have to enter some basic information about you and your business. First, go to the Cashplus website to start the application process. You’ll have to select your business type (limited company, sole trader, other) and enter your business name and Company Registration Number.
Next, you’ll have to select your business, director, industry, and the number of employees. There are also some additional questions about your business; some optional, some required.
The process is straightforward, and you just need to complete the online form.
Cashplus business card
Cashplus has their business credit card with no annual or monthly fees. The company will usually send an email or post an invitation to eligible businesses. You also have to be aware that they’ll perform credit checks before making a decision, which will result in a hard search appearing on your credit record.
Once you get the Cashplus business Mastercard, you can use it for regular purchases, like paying suppliers, buying tools, covering one-off payments, or anything else that’s business-related.
Your minimum credit limit is £100 and maximum up to £3,000, subject to approval.
The representative rate is 29.9% APR, but rates vary from 19.94% APR to 69.94% APR depending on individual circumstances, of course.
Cashplus Bank Expense Card
If you’re an Ltd and need to give your team members or employees business cards, you can order up to 20 additional cards through the application form. You can fully control each card by setting limits and seeing real-time information. They’re also integrated with most major accountancy software tools.
If you’re a frequent traveller or think you need one, you can also apply for a Euro or US Dollar Travel Card. Order it through Online Banking of the Cashplus Bank App and get it in 3-5 working days. They are free of charge.
You can deposit up to €5,000 or US $7,500 respectively. When you spend in the card’s currency, there are no purchase transaction fees, and ATM withdrawals are also free. It’s easy to load the cards, and you can transfer any excess amounts to your Cashplus account.
The Cashplus app is intuitive and easy to use. You can open a personal or business account from the app. Business users can take advantage of the app to easily manage and download statements to their phone or a computer, categorise transactions, customise categories, and even mark transactions as non-allowable expenses. Go further and add notes and photos to the receipts.
You get complete control over company cards by blocking cards or transactions and ATM withdrawals. You can add up to 20 personalised cards and order travel cards.
Overdraft is advertised as a safety net when you are pinching pennies, I guess. Is it the smartest thing to go into overdraft? Hardly, but you have the option if you need to. You get up to £2,000 if you’re eligible, and you can get it only by invitation.
The first £5 of your overdraft is free to use, and you’ll get charged interest on any daily overdraft balance more outstanding than that.
If you borrow £500, for example, it will cost you 57.07% or £0.77 for one day, £5.42 for one week, £23.22 for one month, and £282.50 for one year.
Going into overdraft could impact your credit score positively or negatively, depending on if you make your repayments on time.
Cashplus will send you a message to let you know when you’re nearing your overdraft, have entered the overdraft and when you’ve used more than 80% of your overdraft limit.
Business cash advance
You could be qualified for a Business Cash Advance if you’ve been taking card transactions for over four months and average £5,000 or more a month. There are no complicated APR’s and no fixed terms, and they will take the repayments from your future credit and debit card sales as a fixed percentage.
If your sales slow down, the repayments will slow down as well. Existing customers can’t really apply for these account extras. You can only benefit from them by invitation via SMS, email, or app.
And you also need to remember that late repayments on credit products could cause you serious money problems via excessive fees and a bad credit score.
This is basically a special offer place that gets you discounts on products that have partnered with Cashplus. At the time of writing this review, there were a total of 11 special offers:
- Sage One Accountancy
- The FD Centre
- KashFlow accountancy software
- Market Finance
- Look After My Bills
- Retail Merchant Services
Bulk payments and payroll
Existing Cashplus customer can get access to the Cashplus Payments Portal to streamline your bulk payments by sending them the same day at a low cost. You’ll be using the Faster Payments feature but with no monthly fees, no fee per bulk file and no expensive manual keying mistakes. There’s only a low per payment fee.
You don’t even have to switch banks as you can use Cashplus Bank for your bulk payments and keep using your existing bank for everything else if you wish.
With multiple user profiles, you can give your associates different permission levels, putting you in control of the approval flow.
How is Cashplus regulated?
Cashplus (the trading name of Advanced Payment Solutions Limited, (APS)) is a bank authorised and regulated by the Financial Conduct Authority. They got the UK banking license in February 2021.
Is my money safe with Cashplus?
Cashplus are a member of the Financial Services Compensation Scheme (FSCS), and your deposits are therefore insured up to £85,000. Your concern shouldn’t be if the bank goes belly up but rather if they’re going to block your account and money without any explanation, and that, unfortunately, does happen.
Who owns CashPlus Bank?
Cashplus is a privately owned Bank founded in 2005 by Richard Rich Wagner, who is also the CEO. Its headquarters are in London, England.
The company raised $500,000 in 2006 from their only investor Trident Capital.
Cashplus has a 3.6-star rating out of 5 on Trustpilot, with 47% of reviewers giving it an excellent mark and 35% a bad one. With a 3.6 score, Cashplus Bank is placed lower than Monzo (4.5), Revolut (4.3), and Starling (4.4), for example, and better than bunq (2.4) and Ferratum (2.1).
Cashplus has the same ailments that some other digital banks suffer from – overwhelmed or outright lousy customer service (or at least individual reps), closing accounts without explanation, and holding funds for extended periods.
My guess is that these issues lie in Cashplus becoming a fully-fledged bank this year and stricter regulations on money laundering from the Government that the banking license entails.
The UK customer service is available on 0330 024 0924, Monday to Friday, 8 am to 8 pm, and Saturday from 8 am to 4 pm. If you’re calling from abroad, the number is +44 207 153 8940.
More than 300,000 UK businesses have a Starling Business account, and it’s free. And, although it’s seriously lagging behind Monzo and Revolut in the number of app downloads and users, Starling Bank is arguably the strongest digital banking app on the UK market right now.
Monzo Business account offers a wide range of features that provide many business owners with an appealing offer. If you’re looking for a better banking experience, you should consider Monzo bank. You’ll get around the clock customer service, deposit protection, a nifty app loaded with features, and a business debit card available for use.
You can set up Revolut Business accounts online in minutes with an option of a free account and three paid membership plans with extra features and fewer fees. Revolut is proud to have more than 500,000 businesses with their business account. With their recent expansion to Australia and the United States, that figure is set to skyrocket.
The bottom line
There are just too many bad reviews as recent as a couple of hours ago from people that got their accounts locked and their money put on hold. No matter how valid the reasons behind these account-closing situations are, it shouldn’t be happening in these huge numbers.
Cashplus are not alone in having this issue. Still, they should know that there are plenty of alternatives on the market if this continues happening.
Nevertheless, if you need a bank account but have a bad credit history, this bank account can help you get aboard and turn it around.
Adrian Volenik is a fintech enthusiast who loves testing and reviewing digital banking apps and financial products in general. How many digital banking accounts can one man have? Not enough, if you ask Adrian. As his wallet will soon explode if he doesn’t cut back on the number of cards.