Through this integration, UK small business customers will be able to apply for growth capital via the Capchase app in the Xero App Store. Financial data will automatically be synced between Capchase and Xero, significantly streamlining the approval process. As a result, startup and scaling companies could receive funding in as little as 48 hours after they first apply.

The integration marks a significant step forward in embedded lending technology and access to alternative finance in the UK.

Capchase, which has provided hundreds of SaaS companies with hundreds of millions in capital over the past few years, makes its lending decisions based on a company’s recurring revenue. By being able to instantly access this and other key data points via the Xero platform, accurate lending decisions can be made immediately.

This follows a series of milestones for Capchase in 2022. It secured a further $400m in debt financing in July, and expanded its platform with the launch of Capchase Analytics, as well as agreeing partnerships with leading financial infrastructure platform Stripe and finance automation platform Ramp. In the past year, Capchase has expanded to the Netherlands, Belgium, Finland, Sweden and Denmark, and launched its new European headquarters in London.

Henrik Grim, GM of Europe at Capchase, said: “This integration is a huge step forward for alternative finance in the UK. Thousands of small businesses could now be able to gain fast access to capital.

“With other sources of funding drying up and increasing economic uncertainty, well run businesses can find it very difficult to get the financing they need to keep growing. Capchase provides a great option for these companies and now, by working with Xero, we have really streamlined the process to save business owners one of their most valuable commodities - time.”