Moula Pay is now available as a payment option on Xero invoices
Moula has announced a significant development in its close partnership with Xero, the global small business platform, enabling the seamless integration of Moula Pay into customer invoicing.
In what is a first for both Moula and Xero in Australia, this latest innovation taps into the rapidly growing buy now pay later space for the underserved business category.
Launched recently, Moula Pay was created to support SME business sellers and buyers better manage their cashflow and help solve the issue of late payments.
Moula Non-Executive Director and former Managing Director of Xero Australia, Chris Ridd said integrating with the Xero platform would make it seamless for sellers now able to embed Moula Pay as a payment option within their invoicing.
“Moula Pay is a breakthrough solution for SME businesses in Australia helping to address the magnitude and impact of late payments costing Australian small businesses around $115 billion a year.
“Offering Moula Pay as an invoicing option within the Xero accounting platform will help to streamline the payments process and enable merchant sellers to get paid upfront whilst offering their customers much needed extended payment terms,” Chris said.
Moula’s quarterly study of business owners across Australia revealed that more than 40 per cent of SME customers takes longer than 30 days to pay, reinforcing the need for extended payment terms.
Moula CEO Aris Allegos explained Moula Pay was developed to help eliminate the natural friction that exists between cashflow and payment terms faced by many Australian businesses.
“The common denominator for both sides of business-to-business transactions is a lack of cashflow. Whilst SMEs want to purchase stock, equipment, supplies, or services to facilitate business growth, a lack of cashflow often hinders these efforts. At the same time, business owners who offer payment terms often experience cashflow problems of their own as a result of late payments.
“Moula Pay allows merchants to provide pre-approved businesses with the ability to purchase up to $250,000 worth of essential business goods and services, and removes their hassle of chasing debtors.
“Our partnership with Xero means merchants can now invoice directly from their Xero account and get paid upfront by Moula. At the same time, their business customers benefit from improved cashflow by having 12 months to repay, with the first three months interest and repayment free. This is a first for the SME industry.
Moula Pay for accountants and their business customers
“While Moula Pay caters to the needs of most business seller categories, accountants are also well placed to use Moula Pay either as a per cent management solution for accountancy fees to their own SME customers or as a solution to be implemented by these SME clients.
“With Moula Pay, accountants and their business clients can effectively outsource their credit management function as a potentially more cost-effective way to administer payment terms, rather than in-house. This provides the immediate benefit of a reduction in the size and ageing of debtors.
“They will also be helping their clients access a pool of SMEs that now have access to additional funds for business purchases and a longer timeframe to repay,” Aris said.
Integrating with Xero – easy as 1,2,3.
- Become a merchant, login and click on the ‘connect to Xero’ button to give Moula Pay access to your Xero invoice settings.
- Once your Xero account is connected, you’ll be automatically redirected to the Xero set up screen in your merchant portal. Select your clearing account, fee account and branding theme.
- Hit save and it’s done. Invoices with Moula Pay as a payment service can now be issued from Xero.
Watch how easy it is here.
