“It’s about moving away from more traditional forms of lending and moving towards unlocking some of the value trapped in assets such as receivables and inventory.
“Stream Working Capital allows us to efficiently lend on invoice, so businesses can see credit limits adjust in real time based on the value of current unpaid invoices. As the solution is end-to-end digital and integrated with cloud-based accounting software such as Xero, many customer issues are eliminated. It is transparent, available 24/7 and offers very fast financing, with a 72 hour turnaround time, compared to an industry standard of several weeks, ”Ms. Morgan said.
The study shows that half of businesses would be more likely to use invoice financing if it was offered with their existing merchant bank (50%), if it was simple and transparent (47%) and integrated with their accounting software (41% cent).
Partnering with fintech Waddle means that much of the working capital financing process can be automated, such as credit scoring, underwriting and tracking, to ultimately deliver a better customer experience and faster access. to liquidity.
“Having access to constant cash flow is vital for every Australian business and we wanted to simplify and digitize the process to provide greater flexibility and support to those who need it. We know from our discussions with clients and our research that uneven cash flow is the cause of significant stress for many businesses.
“Using invoices to access credit provides peace of mind for businesses that can now access the money stuck in their invoices, helping them pay suppliers or hire employees. It’s a critical part of helping small businesses recover and grow as the economy begins to reopen and businesses navigate this new operating environment, ”said Morgan.
Two-thirds of businesses (66%) feel frustrated with uneven cash flow, while three in five (60%) business owners feel at the mercy of their customers who pay on time. Three-quarters of businesses (76%) report that cash flow problems limit their growth, stability, and their ability to expand or fill large orders.
Jarrod McGrath, is the Founder and CEO of Smart WFM, an Australian consultancy boutique with a global presence that enables clients to stay relevant in an era of rapid digital advancement. Mr. McGrath says Stream Working Capital has been essential in taking the stress out of hiring new employees and making him feel more confident in growing his business.
“We were growing so quickly and hiring new employees, but it can take up to 120 days for this new team member to be able to generate cash flow for the business. This is what I use the installation [Stream Working Capital] to, to help bridge that gap between recruiting, onboarding, skills upgrading, customer engagement and up to the point of billing, then revenue generation.
“This has been essential in order to be able to scale quickly and, with access to this facility, I am able to pay the salaries the day I take someone on board, which means I can continue to grow and keep control of my business. Being able to employ a knowledgeable team member with confidence is gold for me because it means growing the business.
“Smart WFM’s compound annual growth rate from a revenue perspective over the past three years has been substantial. From a workforce perspective, we have grown over 220% over the past three years. Stream allows us to maintain a substantial growth rate like this and sustain this rapid membership growth. “