On a global scale, receivables funding solutions in Australia lags behind Europe and the United States. This means there is currently untapped potential to deliver billions of dollars of additional funding to Australian businesses.
Executive General Manager, Business Lending, Clare Morgan said: “Having access to cash flow is vital for every Australian business, whether they are a sole trader or one of Australia’s largest companies. We want to simplify the working capital process, especially for small business. This new digital solution means businesses can get faster access to cash flow to cover short-term operational needs and be better placed to leverage fixed assets for longer term strategic goals and investments.
“We’ve heard from our customers that they want to be able to hold more inventory and build relationships with more suppliers to mitigate supply disruption. They also face increasing pressure from suppliers wanting to be paid earlier and buyers wanting to extend payment terms.
“Using invoices to access credit addresses this issue and can provide some peace of mind for businesses who can now access cash locked up in their invoices to be able to pay suppliers or hire employees. It’s an essential part of helping small businesses recover and grow as they continue to navigate a new operating environment during the pandemic.”
Founder and director of Waddle, Simon Creighton, said: “We’re delighted to partner with CBA to make it easier for small businesses to access capital. We’re passionate about supporting small businesses to grow. We see this as alleviating processes that take time - like automating much of the finance process like credit assessment, underwriting and monitoring. It also gives small businesses the ability to better manage cash flow, which is critical in today’s environment, and this partnership will provide the flexibility and support they need.”
Credit limits will be tailored to the business and will rise and fall in real time based on the value of current outstanding invoices. The more customer invoices nominated, the higher the available limit. Businesses will not have to pay an establishment fee and can use as much or as little as they need. Interest will only be paid on the amount businesses draw down, with interest calculated daily on the outstanding balance.
From today onwards, select eligible small business customers will be able to access Stream Working Capital, with the product set to be available more broadly within the next six months. For more information or to register your interest, visit commbank.com.au/streamworkingcapital.