BUSINESS growth platform, Moneytech Limited, has launched a new online small business loan facility specifically designed for the micro SME market.
Moneytech’s new facility provides micro SMEs with a low doc revolving line of credit between $50,000 and $250,000, with approvals and access to funds within 24 to 48 hours.
Moneytech chief executive officer, Nick McGrath said the facility was designed to support the ongoing funding needs of businesses with revenue above $700,000 per annum, and is believed to be the first of its kind to be offered by a non-bank lender in Australia.
Mr McGrath said the firm’s new offering addresses the need for genuine working capital solutions to help micro SMEs navigate the complex operating environment.
“We saw a gap in the market for solutions that catered to the specific needs and challenges of the micro SME segment,” Mr McGrath said. “Moneytech’s revolving line of credit has the flexibility to be used for whatever the business needs – paying for stock, bills, subcontractors, or paying down existing financing facilities.
“We’re pleased to see our new business facility gain traction among our referral partners and SME customers. Based on some initial testing with select Moneytech partners, we’ve already received positive feedback, with over 40 applications now approved.”
Mr McGrath said the new facility is complemented by a end-to-end digital experience for brokers and direct customers accessed via Moneytech’s online funding portal, the Moneytech Exchange.
“We have worked hard to ensure brokers and SME customers can enjoy a truly unique digital experience without needing to print a single piece of paper. From initial application, to signing official loan documents powered by DocuSign. It is a quick and easy digital process,” he said.
MEETING CHALLENGING TIMES
When completing credit analysis for the new facility, Mr McGrath said approval decisions would be based on pre-and post-COVID trading conditions.
“We recognise how important it is to keep cash flowing to businesses when they need it most,” he said. “To assist those businesses who have experienced significant disruption to their operations, our new facility analyses before and after-pandemic sales and revenue before arriving at an appropriate decision for each and every customer.”
While some traditional financiers have started scaling back finance to COVID-affected businesses, Mr McGrath said for many non-bank lenders, such as Moneytech, it had been business as usual in an unusual time.
“We’ve continued lending to new customers, and supported our existing customers with the additional funding they need to help them through this period.”
The new facility forms part of the broader Moneytech growth proposition for SMEs which also includes trade, debtor, equipment and term loan finance solutions for mid-sized businesses.
“As our customers grow and their funding needs evolve over time, we have the capability and expertise to service them fully,” Mr McGrath said.
“Through this new offering, we’re also pleased to expand our working relationship with mortgage brokers. For those who are small business owners themselves, our solution offers mortgage brokers an opportunity to further diversify their income stream into business lending. “