Grapple launches B2B Payments Solutions to plug the Australian SME financing gap
Australian fintech and SME financier Grapple is launching new B2B payments solutions to improve the cashflow of businesses, as Australian SME seek out alternative financing solutions which banks and traditional lenders are unable to provide.
Grapple Pay allows businesses to register on the Grapple platform and pay their suppliers upfront, while they pay over four monthly instalments. Grapple Now delivers businesses immediate payment of their invoices while providing customers with the option of paying in four monthly instalments.
Grapple’s new B2B payments products are well placed to meet the demand of around half of Australian SMEs who are seeking alternatives to lending that is secured by using personal property as collateral. There is an estimated $200 billion shortfall in the capital requirements of SMEs – a problem that’s only going to worsen in the current environment of rising interest rates, an uncertain economic outlook and stringent lending criteria from the major banks.
“SME lending needs are becoming increasingly diverse and a large sector of the market remains underserviced by the banks and traditional financiers. The traditional property-backed loan is often a less efficient or accessible means of financing for many SMEs, and for many others it just results in a lot of administration and a higher cost of capital. Grapple Pay and Grapple Now can be tailored to the growth trajectory of any business and allows SMEs to access smaller amounts of capital in an easier and cheaper format, helping them grow,” said Grapple Founder and CEO Steve Dawson.
The national rollout follows a highly successful six-week Beta period in the second quarter where Grapple saw over 100 approved SMEs transact through the platform and more than 5,000 businesses registering on the Grapple platform.
“Our customers are reporting that Grapple Pay and Grapple Now provide new opportunities to increase sales and growth by allowing them to increase their working capital to assist with everything from inventory management to equipment purchases. Their customers also seemed to jump at the opportunity of paying them in instalments, often increasing the spend or purchase amounts with our businesses knowing they can pay over a few months,” Steve Dawson said.
Grapple’s new B2B payments solutions are proving particularly attractive in emerging sectors like green energy and organic producers in cosmetics or food. “Increasing the velocity of business is good for these enterprises of course, but also benefits the overall economy,” Steve Dawson added.
Following its recent capital raise the Grapple team has welcomed two seasoned FinTech executives in Andre Sekulic and Cathy Kovacs onto their board of directors to help guide them through the next phase of growth. Each bring decades of experience to the growing team. Sekulic was most recently a director of Singapore’s DBS Bank, after long stints at Citicorp and Mastercard. Kovacs currently serves on the board ASX listed companies HUB24 and OFX, following senior leadership roles at Macquarie, BT Financial Group and Westpac.
“Grapple now has a product suite that can cater to a sector of the financing market that banks and traditional financiers have underserviced. Their proprietary tech is Australian owned and developed and this gives them enormous flexibility – not only to service the increasingly diverse needs of SMEs but also to partner with established financiers to provide tailored solutions at scale,” Grapple Director Cathy Kovacs said.