Capchase, Xero Streamline UK Small Businesses’ Access to Capital

Non-dilutive capital startup Capchase is now integrated with global small- to medium-sized business (SMB) accounting software platform Xero, enabling SMB customers in the United Kingdom to more easily access capital.

With this integration, U.K. SMB customers can use the Capchase app in the Xero App Store to apply for growth capital. Because financial data will be synched between Capchase and Xero, the approval process will be streamlined and businesses could receive funding as soon as 48 hours after they apply, Capchase said Thursday (Sept. 29) in a blog post.

“This integration is a huge step forward for alternative finance in the U.K.,” Capchase General Manager of Europe Henrik Grim said in the post. “Thousands of small businesses could now be able to gain fast access to capital.”

Because Capchase makes its lending decisions based on a company’s recurring revenue, being able to access this and other data via the new integration with Xero will enable it to make lending decisions accurately and immediately, according to the post.

Capchase has provided capital to hundreds of Software-as-a-Service (SaaS) companies over the past few years and will now be able to offer it through Xero, which has 3 million subscribers worldwide, the post stated.

“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,” Grim said in the post. “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.”

The announcement comes about six months after Capchase raised $80 million in a Series B growth equity funding round.

Read more: Capchase Secures $80M in Series B Funding

“In this economic environment, founders need new choices when it comes to deciding how to fund their businesses,” Capchase CEO Miguel Fernandez said at the time. “It’s not a one-size-fits-all approach anymore, and in just 18 months of operating, we’ve seen an incredible appetite for growth capital that’s flexible, fast and complementary to traditional funding methods like venture capital.”

For all PYMNTS B2B and EMEA coverage, subscribe to the daily B2B and EMEA Newsletters.