The bank worked with tech company Waddle, a Xero business that has developed a cash flow finance platform, to gain access to a digital platform that provides a live feed of customer data via cloud accounting software.
CBA is promising that its new product, Stream Working Capital, will provide fast credit decisions, with time from application to funding just 72 hours. The system will be accessible 24/7. The bank is also relying on the technology to minimise fraud, which has been a problem with receivables finance in the past.
The Waddle system has fraud detection algorithms, which look at such things as the businesses typical cash flow patterns to detect anomalies. The bank has continued to offer cash flow finance in various forms, such as inventory and trade credit, to its bigger business customers but did not have an offering for small business.
The bank will advance 40 to 80% of the value of invoices, depending on the credit quality of its customers and the quality of the debtor. It is offering the product to ‘select eligible small business customers’ initially, with a full rollout in the next six months.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now