Banjo Loans doubles Business Loan capacity

Banjo Loans doubles Business Loan capacity

Following Federal Government findings and responding to small business demands, leading non-bank SME lender Banjo Loans 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 that “there appears to be a gap for unsecured finance between $250,000 and $5 million, with few lenders willing to offer these loans. The Commission has not identified any regulatory barriers that prevent willing borrowers and lenders from reaching a deal in this segment.”

For Banjo Loans 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,” Callaghan said.

“This size business loan is also an area we understand very 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,” Callaghan added.

“Whether that’s stocking up on inventory, scaling production to win new contracts or whatever works in their business world.”

Banjo is already reporting successful case studies of SMEs who have seized the opportunity to make the most of the newly extended Business Loan offering.

“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,” Callaghan explained.

“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 from Banjo this month. The lender will also be introducing:

  • Extended Repayment Terms for Forward-Thinking SMEs: Up to five years for SMEs who have a strong understanding of their forward projections. Longer dated loans allow businesses to do many things such as scale production to win new contracts, or increase their general operating expense capital.
  • Innovative Cashflow Forecasting Tool for Progressive SMEs: Banjo is committed to providing tools and resources to help SMEs make the right decision for their business. This free tool will be available for SMEs to assess their future cashflow needs.

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