‘Frictionless Finance’ now powered by Xero

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By iwoca, the Xero Connected App for small business credit.

In the first of our three-part blog series, we explain how accountants can use iwoca’s Xero app to help clients manage cash flow fluctuations.

As an accountant using Xero and embracing the cloud, you’ve seen how technology saves you time and makes your life easier. Accounting tasks that were once laborious and time consuming have been automated and simplified. Forward-thinking accountants are taking advantage of these efficiency gains to offer new advisory services.

At the heart of the new advisory services is an ecosystem of third-party apps that connect to Xero. They use Xero accounts data to provide tailored and frictionless service. For instance, at iwoca we have built an award-winning technology platform that uses Xero data to make fast, fair credit decisions. With a few clicks, you can link a client’s Xero data to iwoca. Removing the need to upload additional documents to support their credit application. Credit decisions are made within hours, sometimes instantly. Your client can then draw down the funds at a time of their choice. We call this ‘frictionless finance’.

Helping clients with cash flow

Our mission is to fuel economic growth by giving small businesses the funding they need to buy stock, manage cash flow and fund one-off expenses. We work with accountants across the country on this mission because business owners turn to accountants for trusted and impartial advice on managing their finances.

Michael Ogilvie, Director of OBC The Accountants tells us: “In my experience small businesses don’t fully understand the financial situation they’re facing. They’re good at what they do as their core business, but turn to their accountant for support in financial planning. Understanding your cash flow is essential. For some small businesses cash flow problems creep up on them. They need to be looking a year ahead, and this is where we [accountants] can start to play a more active role in forward-thinking. But the unexpected can result in a short-term funding need”.

The Star Inn

To illustrate, here is the case of a small business who turned to Michael for advice on dealing with cash flow gaps.

The Star Inn, a boutique country hotel located in East Sussex, was referred to iwoca by Michael Ogilivie in February. Due to the nature of the hospitality industry, Michael’s client needed a simple solution to smooth out their cash flow through seasonal dips.

The flexibility of the iwoca facility and the ease of applying with their Xero account really appealed to The Star Inn. The process was simple, which meant that iwoca was their preferred choice over a bank. The Star Inn said, “Last year we approached our bank for funding to cover a VAT bill. It took two months. This year we found ourselves in a similar situation. So, Michael told us that iwoca would be a great option because it integrates our Xero account easily with their platform.”

iwoca was able to approve The Star Inn for a facility of £50,000 within 24 hours of applying. This helped them solve their cash flow needs throughout the quieter months of the year.

“iwoca exceeded my expectations,” Michael explains. “It was very easy to organise compared to the form filling and arrangement fees associated with traditional lending. Because of the Xero integration, I was able to provide iwoca with all the information they needed in just a few clicks.”

How an iwoca credit line can help your clients grow:

Credit limits of £1,000 to £100,000
Draw down any amount up to your credit limit at a time of your choice
Keep the funds for up to 12 months or make free early repayments
No hidden fees or extra costs, just one simple interest rate. Only pay for the days you have a balance outstanding
Sign up in minutes using Xero app with no commitments
Get approved in hours, if not instantly, with funds available immediately on approval
Unsecured, personal guarantee only

In our next blog post, we’ll discuss how Xero accountants can use the iwoca app to assist clients who want to invest in stock to grow their business.

If you want to learn more about iwoca visit our website. Alternatively, iwoca will also be speaking on the Frictionless Finance panel at Xerocon, 2pm Day 1.

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