This initiative empowers businesses by enabling them to share their financial information with trusted service providers. At Same Day Business Loans, our panel of lenders sometimes ask you to connect to open banking during your application to streamline the process and tailor your loan offer to your business's financial needs, meaning funds in your bank sooner.
Not sure what’s involved with open banking? Let’s explore.
How does open banking work?
Through open banking, you can authorise regulated apps and platforms to access your financial data securely. The process is straightforward and controlled by you, no one can access your data that you haven’t given permission to.
For instance, when applying for a business loan, instead of manually submitting bank statements, you can give the lender permission to access your transaction history directly. This not only speeds up the application process but also ensures more accurate assessments.
Is open banking secure?
Security is a cornerstone of open banking. It uses robust technology and strong customer authentication measures to protect your data. Importantly, you never share your login credentials with third parties. Only authorised and regulated entities can access your information, and solely for the purposes you've approved. Our lenders will only use your data in relation to your business loan application.
How will Same Day Business Loans ask for open banking?
Sometimes our lenders ask to see your bank statements and filed accounts in order to make a decision on your business loan application. If one of our lenders requests for you to connect to open banking, we will send you a secure link which will give the lender access. Same Day Business Loans cannot see your open banking data, the access is provided directly to our trusted lender.
By securely connecting to your financial data, we can work together with our lenders to bring your faster business loan approvals and offer terms that reflect your unique financial situation.
What are the benefits to using open banking for small businesses?
Enhanced access to finance: Lenders can make more informed decisions by reviewing detailed financial data, potentially leading to better business loan terms and offers.
Time savings: Automated data sharing reduces the need for manual document uploads and checks, speeding up processes like business loan applications.
Greater financial control: You decide who accesses your data and can take away permissions at any time, ensuring you always have transparency and control.