CBA’s new Stream Working Capital solution has been introduced to the market this month and is dubbed as a “fully digitised working capital solution”.
As per a statement provided by the big four bank, Stream Working Capital works by giving users faster access to cash flow through flexible credit based on their unpaid customer invoices.
The solution, which is in partnership with lending platform Waddle, has a live feed of customer data via cloud accounting software such as Xero to “underpin a business customer’s working capital needs”.
“Stream Working Capital offers businesses improved cash flow and is accessible 24 hours a day,” the CBA statement said.
“It also allows for access to larger and more flexible financing as the business grows, as well as reducing manual processes by up to 80 per cent. This means less hassle for business owners and faster credit decisions, with time from application to funding just 72 hours — down from a typical industry standard of weeks.”
Commenting on the rollout, group executive of CBA business banking Mike Vacy-Lyle said: “Cash flow is one of the key issues facing small businesses, so we have been looking at how we can support customers’ working capital requirements helping them maximise cash flow and drive business growth.
“While small businesses traditionally use fixed assets such as property to secure an overdraft or loan, we have developed Stream Working Capital which will allow customers to access funds by using their outstanding invoices as loan security. The loan size reduces automatically as invoices are paid, so customers never pay for credit limits they don’t need.”
Executive general manager business lending Clare Morgan echoed a similar sentiment.
“Having access to cash flow is vital for every Australian business, whether they are a sole trader or one of Australia’s largest companies,” she said.
“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.”