Cashplus aims to capture 10% of all new UK business accounts
- 660,000 businesses are founded every year across the UK, Cashplus is on track to provide banking services to more than 10% of all start-ups.
- Cashplus provides banking services for small businesses in need of fast, simple banking and often overlooked by high street banks.
- In 2018 there were 27,000 fewer SMEs than 2017 due to lack of support and capital.
Cashplus, the leading digital challenger to banks, has announced a target to service ten per cent of all new UK businesses within the next five years with management hopeful that the milestone can be reached in the next three. It currently holds around seven per cent market share of new UK business accounts.
Cashplus, which has been operating for 14 years and has served over 1.5 million customers in this time, provides fast, smart, simple banking services for small businesses which the high street banks have left underserved and overlooked
A lack of support from traditional banks has resulted in a decline in the number of businesses across the UK. In 2018 there were 27,000 fewer SMEs than in 2017. This is the first year-on-year fall since the parliamentary business series began in 2000*.
Business closures outnumbered new businesses being founded in four regions in 2017: Yorkshire and Humberside, East Midlands, East of England, and the South West. A lack of support and difficulty accessing financial services can, in part, be blamed for the closures.
Cashplus successfully provides credit to fledging businesses rather than offering large loans with rigid application criteria designed around the needs of larger businesses. The finance provider uses data science to power decision making to ensure businesses receive the support they need with affordable and flexible terms, such as helping to pay a bill or paying staff; often just a few hundred pounds.
In addition to its mobile offering, Cashplus also allows customers to use its banking services through the 11,500 Post Office branches and is partnered with some of the UK’s most active accountancy firms and payroll providers, using smart API technology to integrate its services with partner platforms, further cutting down on admin time for business customers.
Cashplus calls for more business leaders to look beyond traditional bricks and mortar banks, which often overlook new, vibrant SMEs or slow down growing businesses with cumbersome authorisation and account opening.
Rich Wagner, CEO of Cashplus, said, “Our goal is to serve the ambitious start-ups across the UK which have been overlooked by the high street banks. We want to provide banking services to at least ten per cent of these businesses to help reduce the number of business closures. Well over half of new businesses don’t make it to their fifth birthday due to cashflow constraints.
“Often it can be just a few hundred pounds needed to keep the lights on, to make sure a bill is paid or to keep stock ticking over.
“It is the everyday economy which powers our country, so if we are to see a rise in turnover, productivity and wages, its essential these businesses can access the services and credit they need.”
Notes to Editors
*Statistics from House of Commons Library: file:///C:/Users/fenella.cuthbert/Downloads/SN06152%20(1).pdf
Cashplus is a leading specialist UK digital challenger to banks for small businesses and consumers. We offer faster, smarter, simpler banking services for the entrepreneurs, independent businesses and individuals that power the UK economy, yet are too often overlooked by high street banks.
Since 2005, we’ve created easier ways for more than 1.5m customers to pay, store and borrow money through our user-friendly digital platform.
We understand what our customers need – time and money to run their businesses and live their lives – and our secure, innovative products are designed to help, where others can’t or won’t.
A true fintech pioneer, we are a fast-growing and credible challenger to UK high street banks.
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Advanced Payment Solutions Limited (APS), trading as Cashplus Bank, is registered in England and Wales at Cottons Centre, Cottons Lane, London SE1 2QG (No.04947027). APS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Number 671140.
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