Commonwealth Bank swooped in to take Waddle under its wing.
👉 Background: Waddle is an invoice-financing company that started in 2015 and was acquired by accounting software company, Xero, five years later for $80 million.
👉 What happened: But earlier this year, Xero had a change of mind... and change of strategy. It wrote down Waddle's value to almost zero. That's when CBA swooped in to take Waddle under its wing.
👉 What else: CBA wants bring invoice-financing technology in-house because they reckon there's strong demand for Waddle's offerings within its yellow walls.
💡Invoice financing is where businesses borrow money against what customers owe them.
💡In businesses, payments often come with extensive payment terms. It might be 30, 60, 90 or even 180 day invoice terms.. And that means businesses might not always have cash on hand when they need it... particularly small to medium-sized businesses.
💡Invoice financing allows a business to sell its invoice to a third party lender like Waddle at a discount. Waddle pays the business cash, and chases up payment for the invoice themselves.
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