The challenge of securing bank finance is seeing a growing number of small and medium enterprises (SMEs) turn to online lenders.

• One in four SMEs have been knocked back for bank finance.

• Among SMEs rejected by a bank, one in three have turned to family/friends or a credit card for funding.

• Of those SMEs that have secured bank finance, 29% of SMEs have had their business negatively impacted by the time taken to organise funding.

• One in four SMEs plan to apply for finance in the future.

Minimum lending criteria:-

1. Have been trading for more than 12 months

2. Require funds quickly for business purposes?

3. Have no security to offer?

4. Receives regular income deposits into Business Account?

Scenario 1

Retail Operation

Purchase investment property in Company Name

Nil ATO debt

Trading 19 years

Lending - $54,000

12 months term

• Funds were sought as clients didn't have enough deposit for investment purchase in company name.

• Annual Turnover was around 500k, lent 54k over 12 months with only 3 months' worth of Bank Statements

• This loan was funded within 48 hours

Scenario 2

Equipment Hire Company

Purchase more stock

ATO – 20k

Trading 18 years

Lending - $60,000

12 months term

• Client Annual Turnover was $450K, lent 60k as they have minimum expenses.

• Funding was complete with 24 hours