In the construction industry where SMEs are expected to fund work up front and late payment is a persistent issue, this is a particular problem.
Customers will get an extended interest-free credit period of up to 116 days* for all purchases made at the initial participating companies.
They can also benefit from up to 56 days’ interest-free credit on purchases made in all other retailers where the card is accepted*.
Recent research by the bank suggests that 20 per cent of small businesses cite cash flow as one of the biggest day-to-day obstacles of business growth, second only to the current economic and political uncertainty.
Working capital ranked as a greater concern compared to other common hurdles, including high overheads (19 per cent) and worries around customer contracts (18 per cent).
Ian Reid, director of small business at Barclaycard, said: “We’re excited to launch this partnership with Travis Perkins and Toolstation, two of the biggest names in the industry. While cash flow remains one of the main challenges for any growing business, we know that the construction industry in particular is comprised of many sole traders and small teams that frequently make up-front investments before they themselves get paid. We hope our extended interest-free offer will be another way to help them take control of their cash flow.”
Paul Tallentire, CEO of Travis Perkins General Merchanting Division, commented: “Managing cash flow is one of the biggest challenges for the trade. With this exciting new credit card built for the trade, Travis Perkins will make it easier for our customers to keep doing what they do best – building.”
John Meaden, Marketing Director at Toolstation, added: “Our successful growth as a business has been built on listening to our customers and providing them with the products, prices and services they need, in the right place at the right time. Our trade customers told us they wanted interest-free credit facilities, and our partnership with Barclaycard is our response. We are confident the cards will prove very popular.”
Customers who sign up for either the Travis Perkins or Toolstation card will be issued a Barclaycard Flex business credit card, one of three small business cards offered by the payments provider. Cardholders will also benefit from access to discounts and offers from retailers such as Argos, Zipcar, Booking.com and the AA. Customers will also be able to register for Barclaycard’s online account platform where they access a range of services including the ability to add new cardholders as well as securely viewing their PIN.