Access to working capital solution


22nd June, 2021

New solution to make access to working capital simpler

A smarter way for businesses to compare loans and finance alternatives is on the way, finally solving key issues in gaining access to working capital.

Small business owners know that cash is king, so when times are tough it’s access to capital that really keeps them up at night.

That’s why MYOB is partnering with Sydney-based fintech company, Valiant, in order to create a new, data-led option for business owners to both compare and gain access to capital from a broad range of lenders.

Recent research, revealed in MYOB’s Business Monitor, shows 26 percent of small-and-medium businesses (SMEs) find access to capital to be a source of ‘extreme’ or ‘a lot of’ pressure for them — unnecessarily adding to the headaches of an already stretched workload.

To ease this concern, MYOB and Valiant are working to deliver a fully-integrated, predictive financing tool in which a business’s accounting platform can help anticipate when a new capital injection is likely to be needed, as well as assessing potential lending solutions that best suit their needs.

“By leveraging cutting-edge technology, MYOB customers will be able to quickly compare products and rates to find a solution that matches,” said co-founder and chief technology officer for Valiant, Ritchie Cotton.

“Quotes are no-obligation, but if a customer decides to proceed with an application, Valiant will work alongside their chosen lender to get an outcome in as little as 24 hours.”

General manager for financial services at MYOB, Andrew Baines, said the partnership would create a one-stop-shop for SME working capital needs.

“We are excited by the opportunity to streamline the customer experience with Valiant, saving businesses time on paperwork and offering an easy way to access the right solution, at the right time.

“Time saved can then be better spent on activity that provides greater value to their business,” said Baines.

MYOB and Valiant: How fintech offers superior access to working capital

As Valiant’s co-founder and chief executive, Alex Molloy notes, pairing accounting tech and fintech in this way is a world-first, but that doesn’t mean the system is unproven.

“Combining MYOB data with Valiant’s breadth of capital solutions is a world-first offering for small business owners,” said Molloy.

“Our shared ambition is to predict and serve finance needs more accurately and faster than anyone else, becoming the trusted finance partner for all MYOB customers.”

The fintech platform employs specialists in areas including commercial and development, working capital and asset finance, and currently engage over 80 leading lenders on their panel.

“By leveraging the relationships we’ve built with each of these lenders, our experts can help our customers access finance quickly, lock down competitive rates and navigate the business loan marketplace to find solutions that make sense for their individual businesses,” explained Cotton

As an example, a successful car hire business needed a loan in a hurry in order to purchase a new, flagship vehicle before the dealership’s stock ran out.

“Valiant was able to quickly build a strong business case based on the client’s fuel savings to get a quick approval on a $150,000 loan at a significantly discounted rate, saving the client thousands of dollars in repayments over the life of the facility compared to a competing offer they had received from the dealership,” said Cotton.

Valiant is even able to offer alternative lending solutions to businesses that may have struggled to access funds in the past.

“We look forward to doing the heavy lifting for MYOB customers so they can spend more time achieving their goals,” said Molloy.

Protecting your business interests with responsible lending practices

The new partnership will see eligible MYOB customers gain access to a tailored subset of Valiant’s more than 80-strong lending panel, with providers ranging from ‘the Big 4’ to the boutique, offering diverse finance facilities such as term loans, business overdrafts, commercial and development lending, fit-out financing and asset finance.

But where does Valiant sit when it comes to responsible lending practices as an intermediary between the small business and the lender?

“Valiant takes financial security very seriously, and as such we have a range of measures in place to promote responsible lending practices and ensure all customer data is kept safe and secure,” said Cotton.

These security measures include transparency in rates, fees and terms for customers and ensuring sufficient checks on current commitments.

The new partnership is underpinned by MYOB’s acceleration into financial services and follows a previous announcement of new invoice financing solutions available through Butn.

As such, Valiant’s financing offerings are already available to MYOB customers, while predictive lending solutions will be fully integrated with the MYOB platform by the end of this year.

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Need access to working capital and fed up with the standard run around? Find out more about how MYOB and Valiant can help you smooth your cash flow problems today.