Leading non-bank SME lender, Banjo is extending its business loan offering up to $2 million per ABN and $5 million across a group of entities.
In its research into small business access to finance, the Australian Government’s Productivity Commission has acknowledged “a gap for unsecured finance between $250,000 and $5 million, with few lenders willing to offer these loans”.
For Banjo CEO, Guy Callaghan, the decision to double the lender’s business loan capacity was a no-brainer.
“We went into $2 million unsecured loans because we knew there was large gap in the market and SMEs are crying out for it,” he said.
“This size business loan is also an area we understand well and want to continue to service to the best of our ability. It also means SMEs will be able to access even more finance when they need it to move their business forward and reach the next chapter in their development, whether that’s stocking up on inventory or scaling production to win new contracts.
“A profitable, high-growth manufacturing firm with two decades of industry expertise and $30 million in annual turnover came to us with a post-acquisition growth strategy to shift premises, upgrade plant and machinery, and expand their market share and product offerings. This firm was discarded by traditional funding methods, but Banjo was able to swiftly support their expansion vision by providing a $2 million business loan in just five business days.”
The increased business loan capacity is one of three SME lending enhancement announcements. Banjo is also extending its repayment terms for SMEs to up to five years and introducing a cashflow forecasting tool to assess future cashflow needs.