Xero (ASX: XRO), a global small business platform, announced on Monday it has acquired cloud-based invoice lending platform, Waddle. According to Xero, Waddle helps connect small businesses to invoice finance, a form of secured lending that relies on a business’s unpaid invoices. Founded in 2014, Waddle’s lending platform service notably allows banks, fintechs, and other lending partners to deliver invoice finance to small businesses that have elected to share their accounting data to enable a loan.
Xero also revealed the acquisition of Waddle is an important step in its strategy to grow its small business platform and to help its customers better manage cash flow and gain access to working capital as needed.
“Waddle’s lending platform has the potential to enable a wide range of banks, fintechs and other lenders to better support small business financial needs. We’re excited about the benefits Waddle can bring to small business and our banking partners.”
Xero further explained that Waddle currently has agreements with banks and lenders in the UK and Australia, and we look to expand these relationships with financial partners to support more small businesses. The lending platform also manages a small direct-lending portfolio used primarily to refine its product development. Speaking about the future of the Waddle platform, the Xero team added:
“We will continue to support Xero’s open ecosystem, with over 200 financial services partnerships and API connections. Xero customers can select the apps and lending products that best meet their needs. We believe choice benefits our customers. In these times, small businesses need support more than ever and we look forward to the next steps in our future with Waddle and opening new avenues of capital to small business.”
Founded in 2006, Xero provides a cloud-based accounting software service for small businesses and their advisors around the world. The company connects more than two million subscribers with an ecosystem of more than 800 third-party apps and over 200 connections to banks and financial service providers.