The financial services arm of the UK's leading supermarket Tesco is to expand beyond retail banking to offer a credit card to small business clients.
Through an alliance with the Royal Bank of Scotland, the grocery giant has launched the Tesco Business Card, a credit card that offers eight weeks interest free on purchases and a range of other rewards that include fuel discounts at Tesco forecourts.
According to Tesco the new card will be targeted at the 2.5 million small business owners in the UK. Cardholders earn one reward point for every GBP3 spent on the card. The card will charge an annual fee of GBP25.
Colin Robertson, head of Tesco Business Card says: We understand the business pressures sole traders face and wanted to offer a card that could help. We have offered a fuel reward scheme as they told us the cost of petrol is placing an increasing demand on their finances.