UK-based digital bank Cashplus has rolled out a next-generation credit card functionality for small businesses and sole traders. The new credit card employs Open Banking technology and other advanced features to create a flexible credit product that can offer guaranteed low interest rates compared to customers’ existing credit facilities.

Offering credit even without a card Cashplus Bank aims to offer maximum flexibility for small businesses to manage their finances and give them good deals through its key features. The features include guaranteed pricing, which means the bank can offer guaranteed savings on interest rates to help customers get off overpriced deals. The company’s customers can use their credit account as a flexible payment tool, without the need for the card itself.

This allows businesses to use credit for purchases with suppliers that don’t accept card payments through the Faster Payments network. To help on cashflow, Cashplus also offers SME Buy Now, Pay Later, which allows business credit card customers to increase that period on purchases from ‘up to 56 days’ to ‘up to 117 days’ for a monthly fee. Likewise, they can restructure their credit card spending as an installment loan, either for a short interest-free period or as a longer-term loan.

The bank’s officials stated that they know that flexibility is crucial for small businesses, especially at a time when companies are facing rising costs. Business needs can change very quickly and the ability to manage cash flow by changing the terms of a loan or by using credit to cover a bill that can’t be paid by card could make all the difference to a growing SME. According to Cashplus, UK small businesses provide a lot of private sector jobs and will be crucial to growing the economy out of recession, yet they continue to be poorly served by incumbent banks, so it wants to offer flexible credit, tailored to their needs, and propose a better deal through its guaranteed pricing tools.

.