Leading non-bank lender, Banjo Loans is introducing an extended borrowing tenor of up to five years for two of its major business loan products.
Changes to Banjo’s Express and Excel Business loans will see the offerings have their maximum tenors extended – increasing from one year on loans below $250,000 and three years on loans up to $2 million.
The five-year tenors will make it easier for SMEs to manage cashflow and working capital. The terms also allow businesses to align their lending with projects that have a longer dated yield and return view, such as making an acquisition or completing a fit-out.
Banjo CEO, Guy Callaghan said the decision to extend tenors will provide businesses with additional stability and fill a gap in the market.
“Growth initiatives for SME’s seem to be pretty flat at the moment compared to when the economy is thriving. While there is support out there to help businesses survive, we want to be in a position to help them thrive. We’ve had feedback from SMEs who have a clear vision of their future growth but haven’t been able to find flexible financial solutions that allow them to achieve their goals,” he said.
“By offering extended repayment terms, we’re empowering forward-thinking businesses to plan and invest with confidence and pursue their growth strategies. Whether it’s scaling production to win new contracts or increasing operating expenses, these longer tenor loans offer businesses the breathing room they need for success.”
The move follows Banjo recently boosting business loan capacity to up to $2 million per ABN and $5 million across a group of entities, and the introduction of its new Innovative Cashflow Forecasting Tool.