Commonwealth Bank has unveiled a new digital bill finance service called Stream Working Capital, which will allow businesses to access funds using unpaid bills as loan collateral.
Business owners will be able to nominate at least $ 15,000 in monthly bills to borrow, with funds to arrive in accounts within 72 hours.
CBA Executive Director General of Business Lending Clare Morgan said invoice financing was perceived to be slow and manual, which is why the bank prefers the nickname ‘digital working capital’ for its new product. .
âStream Working Capital allows us to efficiently lend on invoice, so that businesses see credit limits adjust in real time based on the value of current unpaid invoices,â she said.
âBecause the solution is end-to-end digital and integrated with cloud-based accounting software such as Xero, many customer issues are eliminated. “
A Commonwealth Bank study found that 76% of businesses believe their ability to operate efficiently is stifled by uneven cash flow, while three in five business owners believe they are at the mercy of their customers who pay on time.
At the same time, many business owners are unlikely to turn to invoice financing to solve these problems, with 71% of businesses admitting that they don’t know the process at all.
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Through a partnership with fintech lender Waddle, CBA hopes to address these concerns and deliver a more user-friendly service that gets money into businesses’ hands faster.
âHaving access to consistent 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,â said Morgan.
âUsing 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. “
Stream Working Capital is available to new and existing small businesses for use in business-to-business (B2B) transactions. The ABC is also looking to expand the service to enable businesses to obtain funds against stocks and stocks.
To compare financing solutions, visit our business loan comparison page or browse the selection below.
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