Payhawk releases new emergency credit card line for US and UK customers with zero-interest rate

London, March 12, 2023

While the UK and US Governments were quick to avoid or minimize potential damage as a result of the Silicon Valley Bank disruptions, and whilst the acquisition by HSBC alleviates the initial concern and makes it possible for these businesses to access their cash, there's still considerable market uncertainty.

Now more than ever, there is greater fragility to traditional banking institutions thanks to the supersonic speed of information in a tech-enabled world. Broadly speaking, over-reliance on any one vendor, supplier, or partner presents a significant business risk, in these unpredictable times. As a result, companies should look at credit lines as a way of diversifying cash flow to avoid being caught in the eye of the storm. The term ‘bridging credit’ has traditionally been used to offer short-term solutions to cash flow issues. However, we’re now seeing a shift, with companies opting to use emergency financing with a level of trust previously reserved for offline banks.

“We are eager to provide this product to businesses in need as we have been monitoring the situation with Silicon Valley Bank since Thursday. It was extremely important for us not to take advantage of the situation and contribute to the bank run during Thursday and Friday, but now that there is a real risk of cash crunch at businesses on Monday, we wanted to ensure that we can help those businesses given our strong position as a company in the space,” said Hristo Borisov, Co-founder & CEO at Payhawk.

If you need to open a bank account or gain access to a Visa credit card to pay immediate expenses, you can submit your application request to emergency-credit-card@payhawk.com and the Payhawk team will prioritise your application immediately.

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Credit Card FAQs

How do I get a credit card?

To access Payhawk credit cards, you need to become a Payhawk customer. You must go through our compliance and contracting processes to become a customer. If you’re looking to submit an emergency credit card application, please contact us at emergency-credit-card@payhawk.com

What credit lines do you offer?

• UK companies can apply for credit lines in GBP and EUR, with a credit limit of up to 250K based on credit assessment.
• US companies can apply for a credit line in USD with a credit limit of up to 250K based on credit assessment.

What is the interest rate on your credit cards?

Payhawk credit cards come with zero interest rates but a fixed payment term of 30 days, subject to standard credit checks. If the balance is not cleared in full by the relevant payment due date, Payhawk may begin to accrue late payment fees on the outstanding balance.

What is the application process?

When contacting us, specify the credit amount and currency you want. Then submit a few financial documents to initiate the underwriting process. Once our teams successfully evaluate your application, we’ll contact you with the outcome.

Existing Payhawk customers and SVB customers will benefit from fast-tracked applications.

What is the benefit of Payhawk credit cards?

• Control spend before it happens with proactive limits and spend policies
• Get real-time cash flow visibility over spend. Avoid lengthy waits on statements as per those offered by traditional banks
• Leverage real-time spend visibility and automatic reconciliation to support decisions around cash flow and budgets
• Avoid personal credit checks, with no personal guarantees required
• Enjoy a simplified credit application process for Payhawk customers

Is it safe?

Your money is protected by a process known as safeguarding, which is a regulatory requirement for all EMIs. Under this process, all e-money balances must be segregated from all other cash balances. These segregated balances are held with a safeguarding bank and are routinely reconciled to ensure that the sum of all issued e-money balances is the same as the sum of cash held by the bank in the segregated account.

How does Payhawk differ from traditional Banks?

Payhawk is not a bank; we simply partner with them in order to enable you to control spend and manage your capital. As such, we can offer diversification across multiple financial institutions, which is traditionally challenging for offline banks to achieve.