Earlier this year, cloud accounting software provider Reckon launched the Reckon Loans service in conjunction with local fintech startup Prospa. Now, just five months later, Reckon says it has lent more than $1 million to small businesses.
Reckon Loans provides small businesses with loans between $5000 and $250,000. A key factor is that applications can be approved and funded within one business day.
Suzanne Flanders, owner of the Simply Beautiful Hair and Beauty day spa in Western Australia, said she required cash flow to expand her business and chose to borrow from Reckon Loans rather than one of the big banks.
“I’m not a clairvoyant and don’t have the time to spend away from the business creating forecasts, and usually the banks ask you to reassess and re-submit all the paperwork," she said. "The Reckon process was a breeze and as a result of having quick access to finance I’ve been able to successfully grow."
Reckon Group chief operating officer Dan Rabie said reaching $1 million was “a significant milestone for our business and [it] clearly shows there’s a need for a faster and friendlier service than the banks are providing. We can access accounting data through the Reckon One platform to look at the overall health of a business, not just personal credit scores.
“There are 400,000 small businesses needing cashflow financing each year which is the highest ranked pain point that keeps small business owners up at night. This issue isn’t being served well by traditional lending sources, so we took a brave step to help the engine room of our economy thrive,” he said.
Prospa joint CEO Beau Bertoli said: “Reckon Loans powered by Prospa is a partnership between two trusted brands. Together we’ve been able to offer business owners a customised approach to access working capital and grow their business.
“Customer feedback has been incredibly positive. To reach this figure in such a short space of time means we’re having a major impact.”