One of Australia’s largest accounting software platforms MYOB has today announced a multi-year partnership with business-to-business financer Butn Limited.
Under the partnership, eligible small businesses using MYOB Essentials software will be able to access invoice funding solutions through a fully integrated service designed to help SMEs manage their cashflow.
Speaking to SmartCompany, Butn cheif executive, Rael Ross, explains that the strategic partnership will be the first time a financial product will be seamlessly integrated in the workflow of the MYOB ecosystem.
“We want to be able to offer funding at the click of the button, where a business lives within that ecosystem,” Ross says.
SMEs will be able to access Butn’s finance solutions in MYOB’s Essentials accounting platform by the end of June, ahead of being able to access the solutions in AccountRight by the end of the year.
To be eligible for access, SMEs must complete a five-minute once-off registration, which would then allow Butn’s ‘click of a button’ invoice financing options to work within MYOB’s workflow of everyday transactions at a fixed fee per transaction.
The partnership comes after Butn closed a $12.5 million pre-IPO funding round, which Ross reveals MYOB invested in.
Ross says the goal of the raise was to drive growth and continue building partnerships.
“We have a very strong pipeline of platform partners,” he notes.
MYOB’s move to offer in-app finance solutions is an expected step, given the platform requested its more than one million-strong customer base to express interest in invoice financing in May last year.
What’s more, is MYOB’s chief competitor Xero currently offers SMEs financing through partnerships with six providers including Waddle, Timelio, Finstro, GetCapital, Skippr and FunTap.
However, the point of difference in MYOB’s offering is that the Butn’s solution appears to offer an integrated financing functionality that does not require SMEs to download any additional apps or plug-ins.
MYOB’s general manager for financial services Andrew Baines said in a statement that the partnership with Butn would address the findings of MYOB’s most recent business survey, which found that 29% of SMEs cited cashflow as a cause of extreme stress.
“Through providing quick access to cash in combination with the smart decision-making capabilities of accounting software, MYOB and Butn have a unique opportunity to solve a core issue impacting small business,” Baines said.
Baines added that access to finance during Australia’s next phase of economic recovery will be essential for small businesses and will help them invest in their business.
“As Australia enters its next phase of economic recovery, SMEs will be major contributors to the nation’s revival and growth, provided they can remain nimble and continually invest in their business,” he said.
“We are very pleased to have found the right partner in Butn with whom to support SMEs at this crucial time.”