Jobber knows that cash flow is critical for small businesses to operate, whether they need to cover a receivables gap to meet payroll or invest in supplies or new equipment for an upcoming job. Uncertainty surrounding liquidity could be the difference between long-term success and failure. And many small businesses in the home service industry find it challenging to secure traditional bank loans. Jobber saw this challenge as an opportunity to help its users quickly gain access to much needed finances and, in turn, grow by adding a new revenue stream to its platform.
“Sometimes it takes a financing injection for service businesses to seize new opportunities,” says Laura Collinson, Director of Fintech. “Getting financing is ofen a frustrating and stressful process involving weeks or months of communication with a bank and providing multiple years of financial statements – simply to unlock a business loan that would have an immediate, transformative impact.” Jobber’s big question was: How can we provide our customers with access to capital with minimal risk and limited development resources?
Stripe's financial services products reduce gaps in cash flow for home service businesses. Business owners access Instant Payouts straight from their Jobber dashboard, and receive the money they've earned within seconds instead of days. With Stripe Capital, business owners can receive funding within two days of their request. “The first Stripe Capital loan was approved in 3 hours and 21 minutes, which is radically different than weeks of back and forth with a bank,” Collinson says. “Business owners sign up with a simple application, and repay the loan as a percentage of daily sales."
By offering financial services to address its users cash flow needs, Jobber has expanded and differentiated its platform, and further cemented its role as the primary tool used by its customers to both run and grow their businesses. "Capital and Instant Payouts are especially valuable in the current environment - where credit card borrowing limits and lines of credit are being cut,” Collinson says. “For some, it means filling a short term cash flow gap, for others it unlocks the ability to invest in new employees, equipment or marketing.” It’s a win-win for both Jobber and its home service businesses: By monetising financial tools, Jobber grows its revenue from each business on its platform, makes its product offering even stickier, and solves a crucial challenge for its customers.
Without Stripe, it would have taken significant time and engineering effort to offer these resources to our customers. The financial infrastructure Stripe offers is incredibly valuable to Jobber, and we look forward to seeing what comes next.