Accounting software developer Reckon has announced it will offer loans through an agreement with small business online lender Prospa, as the company extends its suite of financial services accessible to its customers. The introduction of business loans adds to recent news flow, with Reckon partnering with OFX to provide low-cost international payments and PayPal to unlock online credit card payments for companies without card processing facilities.
Small businesses loans of between $5,000 and $250,000 will be available, with terms range between three and twelve months and with daily and weekly payment options available.
Applications are made via Reckon and assessed by Prospa who can give approval inside 24 hours. The health of a business is evaluated by Prospa using a proprietary technology platform to rapidly determine the borrowers lending capacity. The process is significantly faster than traditional loan approvals.
“Data from accounting software used to evaluate cash-flow is seen as the best measure of business fundamentals, helping to determine the businesses ability to repay and manage risk during the life of a loan”, Reckon CEO Clive Rabie said.
“This ability to provide data to a bank or fintech player so that they can do a real-time credit check and provide safer loans to small business is disrupting this space,” said chief operating officer Daniel Rabie.
Reckon will continue to look for additional services and partnerships.
Established in 2011, Prospa has funded more than $150 million small businesses loans.
