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Frictionless Finance – Investing in Stock

Posted 1 month ago in Small business by Clemmy Stopford
Posted by Clemmy Stopford

By iwoca, the Xero Connected App for small business credit

In this second part of our three-part blog series, we explain how accountants can use iwoca’s Xero app to help clients invest in stock to grow their business.

In part one of this blog series, we saw that many Xero accountants have started to offer value-added services, such as advice on finance, to monetise the time that Xero has freed up by automating previously laborious and time-consuming accounting tasks.

At iwoca we have built an award-winning technology platform that uses Xero data to make fast, fair credit decisions. With just a few clicks, you can link a client’s Xero data to iwoca, removing the need to upload additional documents to support your client’s credit application.

Whether your client needs to invest in stock or fund one-off expenses, we work with accountants across the country to help break down the barriers small businesses face when accessing finance.

Collaborative Partnerships

Scott Pheby, Managing Director at Phebys tells us: “There is limited value in the ‘history lesson’ of accounts production. Clients are now looking for a dynamic relationship and a partnership with their accountant. With Xero and iwoca we (as accountants) have better tools to give some science and methodology to cash flow forecasting and management. It’s more collaborative, detailed, and we can talk about the options in more depth.”

To illustrate Scott’s point, here is a case of a small business who turned to iwoca for funding to invest in stock.

If the shoe fits

The Shoe Snob Ltd, a London-based luxury shoe and accessories business for men, needed funds to invest in stock for the launch of a new line of accessories before the Christmas period.

Founder Ngoni Tshekeche tells us, “Because of the seasonal increase in customer demand, we knew that it would be a good time to expand our offering. We wanted to launch a new line of matching belts and accessories, so we decided to be proactive and look for a funding solution that would help us do this.”

Ngoni needed a lot of flexibility because it was unclear exactly how much money he needed, when he would want to use the funds, and for how long he needed the funds. iwoca was able to approve The Shoe Snob for a flexible credit line of £10,000 to use for buying stock.

Ngoni tells us, “iwoca suited my needs perfectly due to the flexibility of their credit line, and approved me for a facility very quickly thanks to their Xero integration. Because I was planning ahead, I knew I would not need the funds until a few months of being approved. If I had gone with a traditional finance provider, I would have had to pay interest on my loan even if I didn’t use the funds, and I didn’t want that. iwoca gave me the funds my business needed to buy stock, and saved me money that I could invest back into my business.”

Planning is key

Scott Pheby advises that having a plan in place is important for retailers. “Planning, rather than reacting, is key. Cash is hard to predict in areas such as retail, but with a proper financial plan, you can see the baseline cash requirements. We can then factor in things like quieter summer periods and stock purchase in the run-up to Christmas. But even then we encourage six-week forecasts too. To prepare for the future, we would encourage and support our clients to look at finance options like iwoca.”

How an iwoca credit line can help your clients grow:

  • Credit limits of £1,000 to £100,000
  • Draw down any amount up to your credit limit at a time of your choice
  • Keep the funds for up to 12 months or make free early repayments
  • No hidden fees or extra costs, just one simple interest rate. Only pay for the days you have a balance outstanding
  • Sign up in minutes using Xero app with no commitments
  • Get approved in hours, if not instantly, with funds available immediately on approval
  • Unsecured, personal guarantee only

In our third and final blog post in this series, we’ll discuss how Xero accountants can use iwoca’s Xero app to assist clients who need funds to pay for one-off expenses.

If you want to learn more about iwoca visit our website. Alternatively, you can watch iwoca’s Head of Partnerships, Colin Goldstein talk on the Frictionless Finance panel from this year’s Xerocon.

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