In these challenging times, access to capital may be more important than ever for Australian small businesses. Some need help filling gaps in cash flow while others are actually expanding, thanks to new business models. So we’re pleased to announce that customers on Xero can now access unsecured lending through ANZ’s Online Business Lending. Small businesses that are eligible and share their Xero data could receive conditional approval for loans of up to $200,000 in minutes.
This technology is integrated with ANZ’s credit and fulfilment platforms to provide Xero customers a quick, intuitive and simple lending experience. Businesses can elect to securely share historical financial information – omitting COVID-related anomalies – from their Xero account. ANZ then uses the data to provide a decision on conditional lending in 20 minutes and full approval within two days. Gone are stacks of paperwork and weeks of waiting for a decision.
Xero customers using ANZ Online Business Lending have access to fixed and variable-term loans as well as overdraft facilities. While both loans and overdrafts are useful forms of capital, they’re designed to meet different needs.
A business loan has a set lending term and can suit small and large capital purchases like property or system upgrades. It requires regular repayments once the money is received.
Overdrafts, on the other hand, are flexible short-term cash flow solutions. They can help with the ups and downs of business by covering trading or seasonal cash flow cycles. Overdrafts can also help manage working capital, such as paying suppliers or purchasing stock.
Unlike loans, overdrafts do not have set repayments. You can draw on the funds in your overdraft – up to as much as $100,000 – and make deposits when funds are available. There’s a fee that’s applied to the limit, but you’ll only pay interest on the overdraft amount you use.
The road to recovery is proving hard for many small businesses, and each one is dealing with its own set of challenges. So we commend ANZ for launching this digital lending capability now. ANZ Online Lending can act as a much-needed cash flow boost for small businesses and help to improve their prospects at a time when small businesses’ health is more important than ever.
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