Commbank’s digital cash flow solution for businesses

Commonwealth Bank has unveiled a new digital invoice finance service called Stream Working Capital, which will allow businesses to access funds using unpaid invoices as loan collateral.

Business owners will be able to name at least $15,000 in monthly bills to borrow, with funds expected to arrive in accounts within 72 hours.

CBA’s executive managing director of business loans, Clare Morgan, said bill financing was seen as slow and manual, which is why the bank prefers the moniker “digital working capital” for its new product. .

“Stream Working Capital enables us to lend on invoices efficiently, so businesses see credit limits adjust in real time based on the value of current outstanding invoices,” she said.

“Because the solution is end-to-end digital and integrated with cloud-based accounting software such as Xero, many customer pain points are removed.”

A Commonwealth Bank study found that 76% of businesses believe their ability to operate efficiently is hampered by erratic cash flow, while three in five business owners believe they are at the mercy of 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 to being largely unfamiliar with the process.

RELATED: Your Ultimate Guide to Small Business Invoice Financing

Through a partnership with fintech lender Waddle, CBA hopes to address these concerns and provide a friendlier service that gets money into the hands of businesses faster.

“Having 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 for those who need it,” Morgan said.

“Using invoices to access credit provides peace of mind to businesses who can now access cash locked away in their invoices, helping them pay suppliers or hire employees.”

Stream Working Capital is available to new and existing small business customers for use in business-to-business (B2B) transactions. The ABC is also looking to expand the service to allow businesses to secure funds against inventory and inventory.

To compare financing solutions, visit our business loan comparison page or browse the selection below.

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