Credit Suisse-backed Tradeplus24 launches with AFG to access thousands of brokers nationally
Credit Suisse-backed Tradeplus24, a SME lending fintech, has joined the Australian Finance Group’s (ASX: AFG) panel of specialist finance providers.
AFG is one of Australia’s largest mortgage broking groups, with 2,975 finance brokers that work with ~7,500 Australians each month, many of whom will be able to offer Tradeplus24’s unique loan product.
Tradeplus24 was selected to join the panel in recognition of its unique model, which uses insurance to underwrite a pool of SME’s account receivables. This removes risk for funders, and enables Tradeplus24 to offer simpler, more streamlined, lower cost, and lower risk lending.
Using Tradeplus24, SMEs gain access to a more convenient and affordable way to optimise their balance sheet, according to Tradeplus24 managing director and ex-NAB exec, Adam Lane, who sees the AFG partnership as a great way to help more businesses achieve growth and sustainability.
“We are delighted to be working with AFG and their introducer community in our mission to assist as many Australian SMEs as possible to access innovative finance solutions to manage their cash flow,” said Mr. Lane.
“The distribution scale that AFG will provide will be instrumental in growing our business to become one of the fastest-growing business lending fintechs in Australia.”
Tradeplus24’s lines of credit range between $500,000 and $10 million and do not require property as collateral, positioning them well to support Australia’s 2+ million SMEs producing $577 billion of GDP, many of whom are struggling in the wake of COVID-19.
Credit of this size also allows Tradeplus24 to meet the need of a significantly underserviced part of the Australian market: alternative lenders typically cap loan sizes at $250,000 but traditional lenders usually can’t structure cashflow finance under $5 million without property security, leaving a big gap in the middle.
Chris Slater, Head of Sales and Distribution at AFG, said that it’s this type of quality and innovation in lending that they wish to continuously offer to their network of 2,975 brokers.
“We are very pleased to welcome Tradeplus24 onto our panel,” said Mr. Slater. “Feedback from our team was that the Tradeplus24 product would bolster our offering in the receivables space.”
“Helping our brokers access the most innovative products in the market is a core principle of AFG and I am confident our partnership with Tradeplus24 will give our brokers choice when finding cash flow solutions for their SME clients.”
