Working with Xero: a guide for lenders

If you are a lender it’s likely you already work with Xero, be that directly or via a third party. If you don’t, your business customers most likely do. Xero is the online accounting software for your business which connects you to your bank, accountant, bookkeeper, and other business apps.

At Trade Ledger, we work with Xero via our accountancy aggregator partners; Codat & Validis allowing businesses to automatically connect their accountancy packages to help inform a decision for a lending opportunity. The process is automated, quick and largely seamless. It’s efficient and effective for business owners, tech providers like Trade Ledger and the banks and lenders which serve them.

Xero does however work slightly differently to other accountancy packages. In particular with the cap they apply to connected businesses, set at 25 concurrently connected.

If usage goes above that 25, the connection will stop and no further businesses will be able to connect their Xero account. 

Unfortunately, this is not an issue which can be resolved by Trade Ledger or our accountancy aggregator partners.

So, what’s the solution? The lender (bank) is required to create a partnership with Xero directly by becoming Certified within every region they operate in. Certification can only be achieved by lenders - all third-parties who wish to access this data are restricted, even the aggregators which make this possible. 

Next steps for lenders

This link gives detail on the Xero App Partnership program: 

https://developer.xero.com/documentation/xero-app-store/app-partner-guides/overview/ 

Each lender will have to work directly with Xero in their appropriate region to discuss becoming an App Partner and attaining their certification. This link gives further information about “Signing Up” with Xero:

https://developer.xero.com/documentation/xero-app-store/app-partner-guides/sign-up 

Having this certification will remove the block that going over the synchronisations limit creates.

You can also read our partners guide on how to get Xero Certified and connected :

- Codat

- Validis