Invoice financing heavyweight Waddle expands to NZ
The fintech lender plans to meet the "significant demand" from New Zealand SMEs.
Australian fintech Waddle, which first started providing invoice financing and factoring services to small businesses in 2014, has today announced its expansion into New Zealand.
Waddle has been focusing on the Australian market up until now given that Dun & Bradstreet figures estimate there to be 60,000 B2B companies in Australia operating in industries suitable for debtor finance.
Waddle has been taking advantage of the large market, with it funding over $200 million in receivables in the last 12 months.
However, co-founder of Waddle Leigh Dunsford said the New Zealand market has great potential.
"We've had significant demand from NZ SMEs, averaging one application per day, without any active marketing of the service. As we have approved a number of NZ accounts, it is important for us to establish a presence as soon as possible to service demand," he said.
The Waddle platform is cloud-based, allowing small- to medium-sized businesses to link their accounting software and receive fully automated funding.
There are also various other features to help SMEs. For example, Waddle launched Direct Feeds in June to allow its small business customers using Xero to get an instant update of their cash flow and borrowing costs.
Co-founder Simon Creighton says the Waddle approach to small business financing is changing what has been a very labour intensive process.
"The current process has been done the same way for decades and no-one was building software to solve it," he said.
“Typically, businesses operate within the lenders’ third-party software and manually upload invoices, scan and email supporting documents to the lender on a daily basis."
“Compared to traditional options, Waddle significantly eliminates the time it takes to apply and get funded, and removes third parties or bankers from the equation."
Waddle is currently based in Sydney's Surry Hills and along with the New Zealand expansion, plan to double its team within the next 12 months.