It’s been a while since we last reviewed the Cashplus Business Account. A lot has changed since then.

The account has always been one of our top picks for those with a poor credit history because it doesn’t require a credit check to open. And it still is, but now that is has been granted a banking licence, and developed into a solid business bank in its own right, we felt it was only prudent to take another look at what the Cashplus business account has to offer.

What is Cashplus?

Cashplus is a digital business current account, aimed at small to medium sized businesses, startups, freelancers, contractors, or anyone conducting day to business banking activities. The account is managed via the Cashplus Bank App and is fully regulated by the Financial Conduct Authority.

What can I do with the account?

  • Receive and make (electronic) payments in your business’ name
  • Setup standing orders and direct debits
  • Pay-in cash (via a Post Office)
  • Withdraw money
  • Access online banking
  • Receive international payments

What can’t I do?

A little history

Cashplus (APS Limited) is one of the UK’s oldest fintech companies. Founded in 2005 it is the market leader in prepay cards, with clients ranging from government departments, councils, small businesses, and sole traders. The company has issued well over a million Cashplus Mastercards, processed over £8bn worth of payments, and holds over £200m of deposits.

In 2021 it was granted a banking licence allowing it to position itself as more sustainable competitor to a number of recent banking start-ups, whilst providing lending and current accounts to small and growing business who are traditionally underserved on the high street.

What are the features and benefits of the Cashplus business bank account?

One of the key features of the account is just how quickly it can be opened. Cashplus claims a new account can be setup in about 4 minutes. That combined with the fact that there are no credit checks has seen Cashplus become a favourite amongst those with poor credit histories, or who just need to open an account quickly.

It is also one of the few business bank accounts to offer cashback on business expenditure. Currently it offers 1% cashback on spending up to £1000 per month, and integration with Aldemore for access to an easy-access business savings account paying 0.50% interest AER. Whilst the rate itself is limited by low Bank of England rates, it beats rates by all four of the main high street banks.

Other features include:

  • Mastercard for spending at home and abroad
  • Send and receive international payments
  • Integration with Sage, QuickBooks, Xero, FreeAgent
  • UK based customer services team
  • Instant notifications for payments and transfers
  • Easy-access savings account via Aldemore

A note on international payments

The account comes with a UK sort code and account number, however as we understand it the international payments service is provided by Natwest. As such, international payments would go to Cashplus’ Natwest account, and Cashplus would then use the payment reference to transfer the money to your Cashplus account. Only payments from EEA and other select countries such as US are accepted.

It’s a bit complicated at present and may change in the near future, but the service is there is you need to use it, which isn’t the case with many of the new digital challengers.

Unfortunately this service does come at a price. There is £15 flat fee for international transfer. As such we’d recommend using a dedicated transfer service.

Other services

Business credit

Unlike most other challenger banks, Cashplus can offer support to its business customers in terms of loans, cash advances and overdrafts up to £2000 if required. These are set against business earnings and paid back through deposits on the account.

Business expense cards

Up to 20 additional cards can be added to your business account. These are useful for employee expenditure whether in day-to-day activities, or when on road such as exhibitions etc… The expense cards are manged within the app/online banking and can be turned on or off as needed.

Foreign currency cards

Whilst customers can use their regular Cashplus Mastercard for spending abroad is does come with some hefty fees when used outside the UK. To combat that Cashplus offers free foreign currency travel cards in euros and dollars.

The foreign currency cards offer fee free withdrawals and purchases abroad, and linked to your main Cashplus account. Any left over currency can be transferred back to your GBP account via the app or online banking.

How much does it cost?

The Cashplus Business Account has an annual fee of £69 this compares well against high street options. For example the Santander 123 Business Account is £12.50 (£150 a year), or Barclay’s cheapest business account at £8 a month, which works out to £96 a year.

The first three transactions of the month are free. After that standing orders and transfers cost  £0.99 per transaction.

Direct debits and UK purchases and incoming bank transfers are always free. There is a £2 charge for withdrawing cash from and ATM and a 0.3% fee for paying in cash via the Post Office.

All of these fees are of course allowable business expenses and be deducted when calculating your taxable profit.

What is app like?

App based banking is where digital accounts such as Cashplus excel. Afterall the app is a replacement of the traditional branch and your main interaction with the bank.

The Cashplus bank app features a clean modern interface, and has all of the features you’d expect from a digital banking app. Payment management and scheduling, direct debit reminders, card management and restrictions, and record keeping.

It also includes instant payment notifications (something traditional banks still don’t offer), spending insights and tracking,

Security and protection

Cashplus became a fully registered bank in 2021. As such any funds deposited in your Cashplus account benefit form full FSCS protection up to £85,000. Additionally, the account has 24-hour fraud monitoring and centralised system for managing and monitoring additional employee and business expense cards.

Who can apply?

The good news is that this account doesn’t require a credit check, meaning it’s suitable for those with little or no credit history, or those with previous defaults, county court judgements, or IVAs. All you need to do is be able to prove your identity and address.

For business applications, we’ll need to verify that your business is based in the UK. Limited companies will also be required to confirm the date of birth and home address of any Persons of Significant Control (PSCs).

The decision is instant, so all being well, you could have a new account set up in your business name, with account number and sort code in a few minutes after applying, and your Mastercard in your hand within three business days. Compare that with 14-21 days for TSB, and you can see why it’s our top recommendation for those needing an account in a hurry.

Apply for the Cashplus Business Account here.

In summary

Digital banks are growing in popularly, especially with freelancers, contractors, tradesmen, hairdressers etc.. setting themselves up as limited companies.

The Cashplus business account is can be cost effective depending on how you use it. Businesses receiving online payment, and paying bills via direct debit or Mastercard, will avoid most of the charges. For those that need to handle cash, or often send and receive international payments thing start to get expensive.

The features of the account are up there with the top accounts and it’s far quicker to set-up than a traditional account. Its track record and history also gives it an advantage over many newer start-ups.

 

 

5 Comments

  • Jem

    The Cash Plus account opening fee is now £49. See the list of fees in https://secure.membersaccounts.com/tc/bus-tc1/terms-and-conditions.pdf

  • Chris O'Hearn

    This sounded good but you might want to clarify the point about international payments.

    They can only accept them from the EEA and certain countries – Hong Kong is NOT on the list for example.

    Deal-breaker for me unfortunately, as my company works for clients around the world.

  • Adrian

    Before anyone opens an account with cashplus please read the reviews on f/b most p%&$#&s poor company I have ever had the misfortune to bank with. I only wish I had read the reviews first myself I certainly wouldn’t have opened an account with this bunch of cowboys. They have now screwed me me over for £ 1600.00 pound plus more as I have failed the security questions which they make up as they f$*#&$&g go along? Despite me informing then of a change in tel no and E-mail they haven’t bothered to update their systems so my new details are wrong but my old details which I have had to dig around for is wrong??? Therefore £1600.00 out of pocket. Dont bother with the national ombudsman either there just as useless. Hoping to get an account elsewhere before the end of march. And never ever will I bank with These t$*$_€s as I said I just wish I had read the reviews first. Now I am seriously in debt having to borrow to survive. ( message to cashplus ( hope to clear any dealings with you before end of March( do not phone me. Do not email me or send me any post I want nothing further to do with you. Bunch of t$*:$*^^s

  • Paul Sweeney

    BE WARNED, they may close your account without warning and no reason. When I called to ask why, I can only talk to support who have no answers and cannot refer me to the very department that made the decision. They will give no contact phone number to that department and no email address. They then return any inward payments (keeping them for a few days of course before returning, to use the funds themselves). I can no longer make payments to suppliers and they won’t make a BACS transfer to my new business bank account. Effectively holding my funds for no reason. My account is in good standing and all inward and outward payments can be verified (as you would expect for a new business start up by an established business owner).
    DO NOT use this company. Go to TIDE or Starling,

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