MYOB, the accounting software company, works with Valiant Finances on a new agreement to offer “predictive financing”, informing companies of their options through Valiant if they need a loan or other type of financing, a report from Today said Monday (June 21).
Valiant will help him connect small businesses with lenders.
According to the report, the impetus for the new technology was the fact that many small businesses were feeling the limits of traditional loans being tightened.
“The banks are not fast enough and good enough to effectively manage this small mid-market,” said the CEO of MYOB. Greg Ellis said, according to the report. “We think there is a huge demand, but it’s still a relatively intensive process, so our goal is to smooth that process in terms of administration, in terms of efficiency.”
In addition, the new partnership offers a contrast to the methods used by the rival company Xero. The report noted that while MYOB and Xero have rolled out invoice finance offerings over the past year, the MYOB-Valiant partnership is distinct as it focuses more on the small and medium-sized business (SME) lending space. ). According to Ellis, the new platform creates a one-stop-shop for users and contains different solutions that can help reduce customers’ system integration costs and operating costs.
FinTechs are working to unlock new banking features using third-party data, PYMNTS wrote, including the sink of opportunity in small business lending.
ForwardAI CEO and co-founder Nick chandi and chief information officer and co-founder Jag barpagga, speaking to PYMNTS, said it would be crucial for banks to work with the back office functions of SMEs to increase funding. Data transparency is also necessary to energize and secure fundraising efforts.
As programs like the Paycheck Protection Program (PPP) have shown, it is important that small businesses have access to capital.