Cashplus is the oldest, most established challenger bank in the UK, offering online banking to business customers for over 15 years now. The question is, has Cashplus managed to remain relevant in an era where business customers have more banking options than ever before, or have rivals like Monzo, Tide, and Mettle stole its thunder?
What business services does Cashplus Bank offer?
Cashplus offers two business current accounts, and a range of lending streams for sole traders and SMEs.
Business current accounts
The business accounts come in two forms, both of which attract an annual fee of £69:
- The Business Go account is devoid of monthly charges after this, but you’ll still pay a small fee for any transactions.
- The Business Plus account charges an extra £9 per month, but also offers 0.5% cashback on your spending, and access to Business Creditbuilder. This entails making your monthly subscription payment into another account, which suggests to credit reference agencies that you can keep up with regular repayments.
Once your account is open, it can be managed online through the Cashplus website or by using the Apple or Android app. These apps can be integrated with the bookkeeping software of your choice – the big hitters like Xero, QuickBooks, and FreeAgent are all compatible, though you’ll need to pay a separate subscription fee.
You can also apply for a business credit card through Cashplus, albeit at a higher APR than you may be comfortable with, a prepaid expense card that can be loaded with funds. You will also be entitled to apply for a business overdraft of up to £2,000, though again this comes with a high APR and annual fee.
Cashplus offers a Business Cash Advance to any company that takes payments through a debit or credit card machine. You’ll automatically make repayments at an agreed percentage from future sales, in a business model comparable to 365 Business Finance.
Business banking alternatives
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform
Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
NatWest Business Banking
✓ Business Current Account
✓ Online, App & High Street Banking
✓ Quick & Easy Application Process
HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
Will I be eligible to open a Cashplus business bank account?
One of the great benefits of Cashplus Bank is the flexibility this offers to people looking to open an account. As long as you have £69 available, you’ll be eligible to open an account – no credit checks will be involved, so bad credit does not need to be a hurdle. You’ll just need to prove your identity and address.
How do I open a Cashplus business current account?
You can open a Cashplus account online. Just decide whether you want a free Business Go account or pay for a Business Extra account, and fill in a short application form. You’ll get an answer pretty much immediately.
How do I apply for a business loan from Cashplus Bank?
You’ll need to open a Business Plus account through Cashplus to qualify for business finance. Once you have done so, wait for a marketing communication that offers you this service, or visit the bolt-ons section of the app.
What are the advantages of banking with Cashplus?
Cashplus has been around for a very long time, giving this challenger bank a level of experience and prestige that could be compared to some of the smaller, newer high street banks like Virgin Money or Metro Bank.
Cashplus make it very fast and simple to open an account online. If your application is successful, you’ll have an account up and running in less than five minutes. It’s also open to people with a poor credit history, who may be declined by other banks.
The two choices of business current account and additional lending streams offer plenty of choice and flexibility to Cashplus customers. The Business Creditbuilder feature may be particularly welcome to new SMEs and sole traders that are looking to improve their credit score.
What are the drawbacks of banking with Cashplus?
As we have intimated throughout this guide, banking with Cashplus can become expensive. Interest rates on lending streams are extremely high, especially when compared to rivals.
Fees applied to using the funds in your Cashplus account can quickly start to add up. Paying £69 in annual fees on top of your transaction charges and a potentially monthly expense is also unwelcome.
You may have no other choice if your business has poor credit, but think carefully before borrowing from Cashplus.
What fees and charges are associated with borrowing from Cashplus Bank?
The fees you’ll accrue to open and operate a Cashplus Account depend on which account you choose. Either way, you’ll need to pay an upfront fee of £69 to open your account, and again as an annual renewal fee. Beyond that, expect to pay the following:
|Type of transaction||Business Go||Business Extra|
|Outgoing payments(debit card or automated)||3 free, then 30p per transaction||10 free, then 30p per transaction|
|Contactless MasterCard||£9.95 one-off fee||Free|
|ATM withdrawals||£2 per withdrawal||£1 per withdrawal|
You’ll also need to pay £5.95 for any additional debit cards assigned to the account, with a maximum of 20 cards available.
If you sign up for business finance through Cashplus, you will make repayments based on an agreed percentage.
What is Cashplus Bank’s reputation among other customers?
Cashplus has an impressive score of 4 from 5 on TrustPilot, drawn from over 8,000 reviews. This is considered Great. Business customers, in particular, seem pleased with Cashplus.
Most of the negative reviews complain of substandard customer support, with long waits to get a phone call answered, but that is pretty much par for the course with a bank.
It’s also worth noting that, unlike many banks, Cashplus respond to all negative reviews and always look to follow up with disgruntled customers.
If you have a questionable credit history, or your business is new and is yet to build a profile that impresses credit agencies enough to permit lending, the flexibility afforded by Cashplus may be very welcome. This is not a cheap business account to run though, so do not allow yourself to be exploited by high interest rates and fees. Check any offer against those issued by competitors that will also accept your business.