How Open Banking and cloud accounting are making GrowthLine applications simpler and quicker than ever before

One of the most important things our team does is to take time to understand each business applying for a GrowthLine. Risk-based decisions can’t be rushed. Properly gauging how much money we’re able to offer and the best way for us to support each prospective borrower over the long term is vitally important.

This process has traditionally taken old-school lenders quite some time. Some SMEs have reportedly taken up to 25 hours filling out the loan request paperwork to their bank. While successful applicants have found themselves waiting for weeks, or even months, for the bank to approve the funds. These extensive waiting times and rigid lending criteria meant that company directors had little oversight of when they’d get a decision from a potential finance provider.

It doesn’t have to be that way anymore, though.

At Growth Street, we ask all borrowers to link up their cloud accounting software and give us oversight of transaction data using the Open Banking framework. By doing so, they are able to help dramatically speed up the ‘get-to-know’ process, meaning they could potentially be approved for finance quicker and with a greater level of insight into our decision-making process.

But what good do these accounting and banking connections actually do?

By connecting a company’s cloud accounting software and Open Banking to the GrowthLine platform, our team is able to quickly – and securely – assess each business’s financial position. This cuts out a lot of time-consuming paperwork, and means we can continue to monitor a business throughout their time as a customer to identify how we could further support them.

Open Banking was introduced by the UK government in early 2018. It enables customers of the UK’s largest banks and building societies to share banking data with third parties in a secure and managed way. It is expected to increase competition and improve the overall customer experience by encouraging greater innovation. In the case of Growth Street, our credit and risk team can use this real-time banking data to make decisions confidently and quickly – and it means less paperwork having to change hands, too.

Streamlining the application process

Mark Heggarty from AHS Commercial – an independent contractor and project management company – got approved for a GrowthLine in just eight days, having connected his cloud accounting software and Open Banking with Growth Street.

Mark said: “Applying for a GrowthLine couldn’t have been easier. By connecting my bank accounts and cloud accounting software, the Growth Street team were easily able to review my business’s financial position without me having to send numerous documents through the post. It really took the hassle out of what is usually quite a long and labour-intensive process.”

We encourage all businesses applying for a GrowthLine to connect their cloud accounting software and Open Banking as soon as possible. It usually only takes a few clicks, and could mean we’re able to make a funding decision much quicker. Now that’s fast finance.

Growth Street Limited is registered in England & Wales (company number 09264172).

Our registered address is 5 Young Street London Greater London W8 5EH United Kingdom.

Written on in Product Borrowing