This depends on the lender. Some lenders have built their platform and credit decision models based on being able to access business data through an accounting package such as Xero, whereas other lenders allow you to apply without connecting your accounting package.
Yes, the data that’s shared with the lender is the same data that you can see in your Xero organisation. This includes business details, such as ABN/ACN and financial information, the business’s transaction history, profit & loss statement and balance sheet. We recommend you make sure that the information in Xero is correct, complete and up-to-date before sharing it with the lender.
We’re committed to the security of your data and provide multiple layers of protection for the personal and financial information you trust to Xero. To help you understand how we protect and secure data, we encourage you to read our policy on security at Xero. It includes the option to request Xero’s Service Organization Control (SOC 2) report for formal reviews of compliance obligations and for evaluating controls relating to security, availability and confidentiality.
If I choose to share my Xero data, will the lender then have ongoing access to my data?
Yes, the lender will have ongoing access to your data in Xero once you provide your consent during the application, with the exception of NAB who will only have 30 minutes access. Ongoing access to your Xero organisation allows the lender, for example, to see that the business remains creditworthy. Some lenders will require ongoing access to your data during the term of the loan facility, so we suggest that you check this with the lender before removing their access.
You can remove the lender’s access to your data from Xero: just go to Settings > General settings > Connected apps