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Invoice Factoring
Working Capital Management
The Top 4 Xero Finance Options for Small and Medium Businesses
With a sea of options available, choosing financing that’s a fit for your business feels overwhelming. As small business owners and entrepreneurs ourselves, we understand the struggle. Financing aligned with an accounting software provider, like Xero, narrows it down. Read on to discover apps that will help you get funded and get back to business across a variety of finance methods.
1. Xero Invoice Finance
Invoice finance is a type of cash flow funding. An invoice financing company pays your outstanding invoices early to improve your working capital. Your customer pays the factoring company on net terms. (It’s also called accounts receivable financing.) Small and medium businesses choose invoice financing because it’s:
- Quick and easy to get
- Flexible; you can get funding as needed
- Easier for new business to get approved (especially compared to banks)
- Debt free; the principal is secured by the invoice
- Dilution free; it lets you stay in control of your company
FundThrough
FundThrough is an AI-powered invoice funding platform that unlocks unlimited working capital based on the size of your outstanding customer accounts – so your funding grows as you grow. You’ll also experience:
- No Hidden Fees: Clients pay one flat fee without any surprises.
- Unlimited funding for unlimited invoices: Get as much funding as you have in eligible invoices.
- Flexibility: Choose which invoices to fund and when to fund them No minimum required funding amount after your first funding.
- Rapid Funding: Get invoices paid in days, not months, through AI and automation that speed up manual processes and eliminate paperwork.
- Easy application: Complete your application in minutes through our user-friendly platform.
- 100% Advance Rates: Unlock the full value of your invoices, less a single, upfront fee, ensuring you get the most out of your financing.
- Dedicated Support: A highly rated support team partners with you to proactively keep you well-capitalized.
- Fund U.S. and Canadian invoices: We work with businesses across North America.
- Industry expertise: Serving a wide array of sectors, including the oil and gas industry, startups, manufacturing, and more.
Ready to get paid early?
Satago
Satago integrates with Xero to help you get paid faster in several ways:
- Automated A/R collection: Send automated payment reminders and “thank you” emails to customers.
- Customer risk insights: Check your customer’s credit score and payment history before agreeing to net terms.
- Invoice financing: Unlock cash flow from your accounts receivable
Sonovate
Another invoice funding option that integrates with Xero, Sonovate funds invoices–but only for recruiting agencies, consultancies, and online freelancer platforms. Sonovate clients appreciate:
- Peace of mind about their cash flow: Up to 100 percent advance invoice funding and up to 95 percent bad debt protection.
- The online platform: automated processes speed up traditionally manual invoice funding. It’s quick and easy to set up your account.
- International invoice finance: Confidently expand your business across borders.
2. Xero Small Business Loans
Most options for Xero small business loans are limited to the UK and other parts of Europe. If you have a business overseas that you’d like to get funded through Xero, you can try:
Nucleus
Nucleus makes getting a loan through Xero easy:
- Tailored to SMBs: Work with a finance provider who believes in your business.
- Fast underwriting: Nucleus uses your accounting data to speed up the time it takes to make decisions.
3. Xero Line of Credit
The same was true about Xero lines of credit: most options aren’t available in Canada or the U.S. If your business is outside North America, you could try:
Capchase
Get a scalable line of credit for your SaaS business. Clients who like Capchase most appreciate:
- Quick application and approval: Capchase speeds up your onboarding through Single Sign On (SSO) and automated processes.
- Non-dilutive capital: Capchase highlights the fact that a line of credit keeps you in control of your business.
- Their growth advisor: Once you’re approved as a customer, you’ll get a dedicated growth advisor to help your business succeed overall.
4. Other Xero Small Business Financing
It makes sense to have a diverse mix of Xero small business financing methods for different use cases. If you need something different, look into:
WayFlyer
WayFlyer funds consumer-facing ecommerce brands all over the world, featuring:
- Fast, flexible financing. Funds can be in your bank account in as little as 24 hours, and you can choose from tailored financing offers.
- Complete control: No collateral needed; keep your equity.
- Easy accounting: Reconcile your funding with your Xero account through the integrated Wayflyer app.
Xero Beautiful Business Fund
The Xero Beautiful Business Fund is an initiative aimed at supporting small business growth. Xero small business customers from Australia, Canada (except Quebec), New Zealand, Singapore, South Africa, the UK, or the US, can enter. Four winners from each country will win $12,500 USD. Four global winners chosen from the country winners will receive an additional $30,000 USD. Learn more and enter to win.
Key Benefits of Xero for Small Businesses
Get the basics on Xero, whether you’re shopping for accounting software products or are looking for more context regarding Xero finance.
Benefits of Xero for Small Businesses
When your small business finances get too complicated for spreadsheets, the right platform will help keep your books clean and up-to-date. Xero accounting software stands out as a powerful tool designed specifically for small and medium-sized enterprises’ business accounting needs. Xero enables entrepreneurs to focus on what truly matters—growing their business. These key advantages the platform deliver make that happen.
Spend less time on your books
As a secure cloud accounting software, Xero automates accounting tasks and accounting workflows. It reconciles bank transactions, sends invoices and payment reminders, accepts payments, and lets you manage your expenses all one place. The Xero Accounting App gives you the freedom to monitor your money from multiple mobile devices.
Easy User Experience
Compared to competing platforms, Xero is beautifully designed and intuitive to use, making it easy for small business owners of all skill levels to keep their books. Because it’s online accounting software, you (or anyone on your team, since Xero allows unlimited users) can manage your business finances from anywhere.
Affordable Pricing
Xero includes a robust set of features, even in lower cost plans, which start at $15 dollars per month. They also occasionally offer discounts, such as giving 95 percent off any plan for three months.
Core Features of Xero
Bank Integration
Link your bank account for real time data on your bank balance and any bank reconciliations so you can closely follow your cash flow.
Digital Invoicing and Payments
Send invoices and invoice reminders to your clients while accepting their payments through a variety of methods.
Expense Management
Keep track of spending, expense reports, and reimbursements.
Bill Pay
Easily pay suppliers and service providers and keep track of accounts payable.
Customizable Reports
Simple, customizable reporting shows you how your money is coming and going and where you’re headed financially.
Pricing Plans
One of the best aspects of Xero is its affordability. Their three pricing tiers are:
- Early: $15 per month
- The Early package is Xero’s least expensive plan, providing all the accounting basics.
- Growing: $42 per month
- The Growing package adds features for businesses with larger volume and employees.
- Established: $78 per month
- The Established package comes with additional tools for managing a more complex business beyond accounting.
FAQs
What is Xero Finance?
Xero is a robust, cloud-based accounting software for small businesses around the world, including the UK, Australia, U.S., and Canada. Compared to competitors it’s simple, easy to use, and affordable. Xero finance can also refer to business funding options that are compatible with the software, often found in the Xero App Store.
Can Xero be used for personal finances?
Xero can be used for personal finances, though it is designed with small businesses in mind. Features like Xero Cashbook sorts your expenses into categories, and simple financial reporting shows you where your money is going.