Cloud accounting software Reckon, in July, had launched Reckon loans, a lending platform for small and medium enterprises (SMEs) in partnership with Prospa. The platform that offers its customers an online business loan, had recently crossed a key milestone by funding over $1 million to SMEs. Reckon has been selling accounting software to businesses for many years and a lot of the time through accountants and bookkeepers that are partners.
COO Dan Rabie told ZDNet they got feedback from the firms that the biggest barrier to small business being able to succeed is access to capital. They keenly observed and found the banking space was not properly catering to the needs of small businesses, banks rather seem reluctant to venture deeper into small business loaning space. Reckon, on the other hand, has lent $1 million to SMEs since its platform’s launch. Dan concludes reaching this milestone makes it perfectly clear that there’s a need for a faster and friendlier service than the banks are providing.
Reckon Loans provides companies fast and simple service with approvals and funding of loans from AU$5000 to AU$250,000 available within a day. Loan terms range between three and twelve months with daily and weekly payment options available. The interest rate is dealt depending on the business, how risky it is and how much money the company wishes to loan.
Prospa’s joint CEO Beau Bertoli said the association enables them to offer business owners a customised approach to access working capital and grow their business. Reckon has the data Prospa needs to perform a streamline credit check. The process aims to assess the credit rating of a business in the minimum time to give a quicker access to capital. This addresses and solves the issue with banks’ processes by being swift and efficient.
Rabie believes this platform seems to outdo its cloud accounting service as it’s difficult to sell software to small businesses, accounting software is the one they tend to buy essentially due to compliance reasons. He reckons software is going to transition from accounting software into a greater platform that will provide additional services for the small businesses. Other than loans, they can offer services to help the firms grow and achieve their respective goals.
Reckon, since its inception, has evolved itself. Initially it proceeded to undertake just software distribution, hence not writing their own softwares. Later, it pursued the latter as well, and Rabie says they are constantly managing these two aspects meanwhile managing their shareholder’s expectations. The company’s next step will be integrating more fintech players into their platform.