CBA’s Stream Working Capital, developed in concert with fintech Waddle, uses a live feed of customer data via cloud accounting software such as Xero, to underpin a business customer’s working capital needs.

The system allows for access to larger and more flexible financing as the business grows, as well as reducing manual processes by up to 80%, says the bank. This translates into less hassle for business owners and faster credit decisions, with time from application to funding just 72 hours - down from a typical industry standard of weeks.

Group executive of CBA business banking, Mike Vacy-Lyle, says: “While small businesses traditionally use fixed assets such as property to secure an overdraft or loan, we have developed Stream Working Capital which will allow customers to access funds by using their outstanding invoices as loan security. The loan size reduces automatically as invoices are paid so customers never pay for credit limits they don’t need.”

Credit limits are tailored to the business and rise and fall in real time based on the value of current outstanding invoices. The more customer invoices nominated, the higher the available limit.

Businesses do not have to pay an establishment fee and can use as much or as little as they need. Interest is only paid on the amount businesses draw down, with interest calculated daily on the outstanding balance.

CBA executive general manager, business lending, Clare Morgan says: “We want to simplify the working capital process, especially for small business. This new digital solution means businesses can get faster access to cash flow to cover short-term operational needs and be better placed to leverage fixed assets for longer term strategic goals and investments."