Tungsten (LON:TUNG) said its banking arm is now taking deposits, which will provide additional financing capability to its early payment electronic invoice finance business.
The move represents another plank in the Tungsten business model, whereby the financing arm has a symbiotic relationship with Tungsten Network, the electronic invoicing business.
Tungsten Bank is offering cash-rich companies an opportunity to place short-term deposits at competitive rates – currently 1.5% a year gross interest on 35-day notice sterling deposits and up to 1.85% a year on one year sterling deposits.
To use Tungsten Early Payment, suppliers sign up with Tungsten and then select approved invoices for early payment. It operates in a transparent way with none of the fees and red tape that characterise traditional alternatives, Tungsten said.
"Tungsten Bank is a challenger bank committed to meeting the financial requirements of a wide range of businesses, and is developing a series of deposit products to offer corporate customers attractive rates of interest on their cash," said Edmund Truell, Tungsten Group’s chief executive officer.