Everyone knows the story: small businesses need access to credit to support business growth. The problem is, the banks aren’t coming to the party. Not for SMEs. Take corporate credit cards for example. Firstly, applying for a corporate credit card is inherently flawed. Business owner goes to the bank branch. Needs to be identified, as do their directors. Needs to supply bank statements for assessment. Beneficial owners also are required to be identified and screened, often on paper-based forms Bank takes weeks (or even months) with the process. Business owner gets a call: approved subject to personal guarantee over the debt. Business owner deems the process too hard; walks away.
What makes matters worse, is that the small business owner was seeking the corporate card to grow their business, not to add additional hours of work reconciling statements. Whether for liquidity or to support their team to spend money and manage expenses, acquiring a corporate credit card was a logical step. Then the bank got in the way.
Over the past few years, we’ve spoken to hundreds of small businesses owners who got started with a view to capitalising on a skill or expertise that they've developed and to have more ‘freedom’. Then, they grow their business to a point where they become victims of their own success: their rapid growth sees an increase in financial admin and need for short-term cash-flow, which ultimately takes them away from focusing on what they’re good at. Often, small business owners see corporate credit cards as a way to simplify financial admin, when in reality this is not the case with the products in-market today.
There’s a couple of reasons for this.
There’s huge change coming to the small business credit card space. As we’ve established, small businesses have been crying out for a better solution for decades. No doubt, what is on the market today doesn’t help small business owners - it only makes their lives harder.
Businesses like Archa are jumping on this opportunity to help small business owners grow faster, and get time back in their day. We want business owners to be able to focus on what they do best: running their business. The financial administrative overhead created by banks is absolutely massive, and importantly, it’s preventable.
When surveyed, almost two thirds of small business owners named collecting receipts and reconciling transactions as the most time consuming administrative task they deal with. Beyond collecting receipts and reconciling, there’s issuing cards, approving expenditure, monitoring accounts, briefing bookkeepers, and general accounting admin.
We’ve built a business credit card program from the ground up, designed with a single goal in mind: turn the business credit card into an asset for small business owners, not a liability. To do this, we’ve focussed on a few key principles:
Join our beta program here to help us on our mission to help small businesses everywhere grow faster, and to give teams more time back in their day.
Inside Small Business