Lending pilot FAQs

Find answers to frequently asked questions (FAQs) about lending loans and finance for small business within Xero.

Lending in Xero

How was I selected for this pilot?

You’ve been selected for the pilot based on a set of eligibility criteria provided by our lenders. Being part of this pilot means you have the option to obtain an obligation-free quote for business finance from our lending partners from within Xero.

Is Xero lending money?

No, our lending partners will be providing the credit. Xero is simply making it easier for your business to access working capital.

How does Xero choose its lending partners?

We’ve chosen finance providers that want to help small businesses as much as we do. We look for partners with high customer satisfaction, best-in-class security and innovative funding solutions.

Does Xero make money from this arrangement?

Yes, Xero has commercial arrangements with each of its financial services partners. If you're approved for a financial product, Xero receives a fee. This does not influence the products displayed to you, or the order in which they appear.

How does Xero work with lending partners?

Xero shows you quotes for your business based on your Xero data, including characteristics like industry or turnover. The quotes are provided by our lender partners. You'll only see quotes when your business meets the requirements for a lender’s product.

Xero has commercial arrangements with each of its lending partners. If you’re approved for a business loan Xero may receive a fee. This does not influence the price or fees you pay to use the product, the products displayed to you, or the order in which they appear.

Learn more about how Xero uses your information and your rights in our privacy notice.

Does it impact my credit score when I get business finance quotes through Xero?

No, getting a quote in Xero will not impact your credit score and you won’t be contacted by our lending partners until you give consent to sharing your data for an application.

How much could I access?

The amount you can access depends on the lender and your business circumstances. Typically, your credit limit and rates are confirmed upon approval. The quote is an estimate based on your Xero data and your actual credit limit and rates are confirmed upon approval.

Who should I seek advice from before applying for business finance?

We suggest you speak to your accountant or business advisor about whether any of the invoice finance options in Xero are a suitable solution for your business.

What are the benefits of applying for a business finance loan in Xero?

  • Greater confidence: Through the power of your Xero data, we’ll only show your business finance options you’re eligible to apply for – giving you greater confidence to choose the capital that’s right for your business.
  • Easy to navigate quotes: We’ll lay out all the costs associated with each business finance product to help you compare.
  • Easy applications: Our partnerships with lenders mean that applying for business finance is simple and quick.
  • Fast decision-making: We’ve partnered with lenders who aim to get a decision within 48 hours of your completed application. In some instances you could get a decision on the same day.
  • Fast funding: If your application is approved, funding is typically available within 48 hours of setup.
  • Easy reconciliation: Enjoy seamless reconciliation of your loan transactions and fees in Xero.

How are the products in my quote chosen?

The product results you see when you request a quote are based on your Xero data. Xero uses your business characteristics, like industry or turnover, to determine which products may be suitable for your business.


Do I need to share my data to apply for business finance?

Yes, you’ll need to consent to sharing your business and related financial information so that lenders can assess your application. This may include your registered company name, company number, business type, annual turnover, length of trading history, and director information in Xero. Your Xero credentials will not be shared.

What will lenders do with my information?

Lenders will use your Xero data to assist with their underwriting process. As part of the assessment, lenders will share your information with credit reference agencies to run soft credit and identity checks, which will not affect your credit score. They may also share it with fraud prevention agencies. Please be aware, if they do spot fraud, you or others could be refused services, finance or employment.

Is my data safe?

When you give Xero permission to share your Xero data with finance partners your data is transferred through a secure connection that uses industry standard encryption technology. Finance partners will treat this information in accordance with their individual privacy policies.

What will my Xero data be used for?

Your Xero data will be used by the lender to assess your loan application. Lenders require accounting data to assess loan applications, so sharing this information directly from Xero makes it easier and faster.

Can I choose to not share my Xero data?

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.

What will the lender want to know about my business?

Each lender will outline what it requires in its application process. Generally, the lender will want to know:

  • business details, such as your Company Registration Number, registered address, and tax information
  • personal details of directors and shareholders
  • relevant financial information, such as your business’s transaction history, profit & loss statement and balance sheet

Can I see and correct data about me?

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 company registration number (CRN) 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.

Could my data be sold?

No. The information inside Xero belongs to you. If you want to share it with the lender to speed up the application process, once you provide your consent during the loan application, we will securely and confidentially share it with the sole purpose of helping the lender assess your application. All of our lending partners must agree to and adhere to the terms of use outlined in the Xero Developer Platform Terms and Conditions.

How long does it take to apply for finance if I share my Xero data with a lender?

You may be able to complete the application in as little as 20 minutes (or even faster for some lenders), provided your information is correct and up-to-date in Xero. The steps to connect and share your Xero data with the lender take just a few minutes during the application.

How do I apply for finance using Xero?

Visit your selected lender’s website directly to apply for a loan (or other financial product). The lender’s application will guide you through the information they require and will offer you the opportunity to connect your Xero organisation. At this point, you’ll need to enter your Xero login credentials, accept the data-sharing terms, and provide your consent before your Xero data is shared with the lender. Once this is done, you just need to finish and submit the application. The lender will let you know if it is approved.

How can I improve my chances of being approved for a loan?

Firstly, we recommend that you have an accountant or bookkeeper to set up and oversee your Xero accounts. You can find an experienced advisor in the Xero advisor directory. Then, work with your accountant or bookkeeper by following this checklist to help ensure your Xero data is in the best position to share with the lender:

  • Connect your bank feeds to Xero so your transactions automatically flow in.
  • Create bank rules to help make it easier for you to reconcile transactions.
  • Use other features in Xero to automate the flow of information in, such as email to bills. The more information that flows in, the more powerful your Xero data becomes.
  • Make sure that all your transactions are reconciled before you start a loan application.

It’s important to make sure that information in Xero is complete, correct and up-to-date so that when you apply for business finance, the lender sees an accurate representation of your business and can make a decision faster.

Yes, you will need to give your permission during the application process before your Xero data is shared with the lender. We’ll never share your data without you telling us to. To share your data you must have an advisor or standard role type.

How will my data be shared?

Once you provide consent, your Xero data will be confidentially shared with the lender via a secure Xero API.

How do I know which financial product is best suited to my business and needs?

We recommend that you consult with your accountant or other business advisor to discuss the best financing option for your business. You can then come back to Xero to see which of our lending partners offer the type of financial product you need. Learn more about financial products.

Is my Xero data secure?

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.

Xero’s privacy policy is also available on our website.

Does Xero get paid by the lender?

Xero will receive a fee from the lender for providing access to the secure Xero API, through which they access your data.

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. 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

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