We spoke with Bernadine Geary, Director, Cashflow Finance at Fundamental Business Finance, who provided some insights to the...
Introducing Waddle Direct Feeds for Xero
Learn how the Waddle Direct Feed has changed the entire industryTeam Waddle
We’ve been working hard to bring our customers the market leading experience in the world of receivables financing
Today we are proud to officially launch Waddle Direct Feeds, a facility that enables customer payment data- such as deposits- to be fed automatically back into Xero, allowing for effortless and transparent bookkeeping. Waddle Direct Feeds is the latest addition to our Waddle product, helping to provide a world class, market-leading experience in automated receivables financing.
Waddle has been engineered from the ground up to simplify receivables lending, facilitated by integrations with cloud accounting providers and banking data sources. Credit, risk, funding and portfolio management are embedded directly into these data sources, enabling a smooth experience for borrowers.
Traditional receivables financing transactions
Unlike Waddle, traditional Invoice Financing providers- such as banks- largely utilise third party software to manage client accounts. Under these systems, borrowers rely on the lender to update customer payment information for invoices manually, requiring the borrower to wait for payment confirmation. This process is prone to human error, delays, and increases a borrower’s reliance on the lender. Borrowers may also be subject to hidden administration fees accruing from these manual processes. Waddle has addressed this frustrating bottleneck by developing software to automate this process, delivering a customer experience never offered in any global market before now.
With Waddle direct feeds, customer transactions flow seamlessly into Xero, reducing manual admin work and the risk of data entry errors. Direct feeds make daily reconciliation a reality and allow businesses to see their true financial position each business day.
Working on the exact same data, accountants and bookkeepers can forecast, plan, and help businesses remain financially stable and viable.
How Waddle Direct Feeds has changed the industry
The key to providing an experience that has removed almost one hundred percent of all customer ‘pain points’ and complexities, was the transformation of the traditional receivables finance product into a revolving line of credit.
With Waddle, drawdowns and repayments mimic the function of a traditional overdraft; however, customer payments automatically repay the line of credit without the need for borrower repayments. This mechanism for repayments removes the enormous strain the borrower may find using traditional business loan products such as fixed term loans, which require regular repayments of principal and interest over set dates. Fixed repayments can increase stress on operational cash flow, with available funds being channelled into repayments, in some cases resulting in higher borrowing costs.
A revolving line of credit allows a customer to draw down up to the allowable limit, only paying for what is borrowed. It can be repaid without a fixed repayment period.
Customer payments received into a customer’s Waddle account are reflected as they would appear in any traditional bank account. These payments reduce a customer’s loan balance. Through Waddle’s Direct Feeds, deposit data, fees and interest expenses are available automatically in the linked Xero account, without any manual intervention.
Waddle has taken automation through data feeds one step further
Unlike any receivables product that exists today, Waddle’s lending product also automatically codes interest and fee expenses into your Xero feed. This feature lightens the bookkeeping load, provides real-time transparency into funding costs and further enhances the borrower’s experience.
Waddle has automated a process that has traditionally cost hours of labour in the ‘back office’. Our line of credit has been designed to remove the hassle normally associated with working capital products, providing a seamless, stress-free way of accessing funding against receivables.
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