Moneytech, one of the biggest players in the fintech SME space, has announced a partnership with payroll funder APositive.
The move will see the lender assist SME brokers and their clients by providing greater access to payroll and timesheet data, thus reducing turnaround times for brokers and taking much of the paperwork and admin out of the equation.
“We think this is breaking new ground because a lot of financiers and non banks, right now, are funding their clients through data that is already extracted from a client’s accounting software, such as Xero, MYOB or QuickBooks,” said Nick McGrath, CEO at Moneytech.
“Where this partnership is different is that, APositive have built technology that allows a financier such as Moneytech to extract data from accounting software but also, more importantly, extract data from clients payroll and timesheet software.”
“The reason that is really important is that, in the invoice finance or debtor finance space, it helps Moneytech validate that the invoices that we are financing for our clients are legitimate and our customer used the staff to complete that work.”
“The primary difference is that, from a risk mitigation and from a client funding automation perspective, being able to use APositive software to tap into a borrower’s payroll system helps to speed up the customer experience and helps up to handle our own risk. I don’t think there’s another debtor finance company in Australia that does that.”
The advances in data, allied with Moneytech’s own software, should see broker turnaround times drastically reduce.
“From a broker perspective, debtor finance and invoice finance have historically been the same thing,” explains McGrath. “In the invoice finance market, things were very manual and cumbersome in terms of the time required for a broker to send an application to financer such as Moneytech and settle a transaction.”
“What this partnership with APositive will allow Moneytech and the broker to do is to speed up the settlement process from 2 to 4 weeks to 2 to 4 days for a debtor finance transaction.”
“It gets it off the broker’s desk a lot quicker and means that there isn’t as much interaction required between Moneytech and the broker, because most of the information we need for a client, we’re able to automatically extract, as opposed to using the broker as a middleman to get information from a borrower.”
