Leading non-bank lender Banjo Loans introduces extended repayment terms for forward-thinking SMEs
Leading non-bank lender Banjo Loans is introducing an extended borrowing tenor of up to five years for two of its major business loan products.
A key reason for the longer terms is a bid to help SMEs manage their ongoing repayments and reduce financial strain in a tough environment.
Changes to Banjo’s Express and Excel Business loans will see the offerings have their maximum tenors extended – increasing from one year on loans below $250,000 and three years on loans up to $2 million.
The five-year tenors will make it easier for SMEs to manage their cashflow and working capital, with the aim to allow businesses to focus on growth opportunities, rather than pure survival.
The terms could also allow businesses to align their lending with projects that have a longer dated yield and return view, such as making an acquisition or completing a fit-out.
Banjo Loans CEO Guy Callaghan says the decision to extend tenors will provide businesses with additional stability and fill a gap in the market.
“Growth initiatives for SME’s seem to be pretty flat at the moment compared to when the economy is thriving. While there is support out there to help businesses survive, we want to be in a position to help them thrive,” Callaghan said.
“We’ve had feedback from SMEs who have a clear vision of their future growth but haven’t been able to find flexible financial solutions that allow them to achieve their goals.”
“By offering extended repayment terms, we’re empowering forward-thinking businesses to plan and invest with confidence and pursue their growth strategies.”
“Whether it’s scaling production to win new contracts or increasing operating expenses, these longer tenor loans offer businesses the breathing room they need for success.”
The move follows Banjo recently boosting business loan capacity to up to $2 million per ABN and $5 million across a group of entities, and the introduction of its new Innovative Cashflow Forecasting Tool.
Senior broker at Sqale Finance Yuan Chong said the suite of enhancements would go a long way to providing better cashflow buffers for businesses.
“Banjo extending their loan terms is an absolute game changer – and with these new five year terms, I expect to see more SMEs using Banjo products in their overall growth plans,” Chong said.
“A substantial and consistent buffer positions a business for continued growth because if the tenor is too short then it’s hard for businesses to establish and nurture opportunities.”
“More than 80% of business owners we help at Sqale have annual revenue less than $3 million and are seeking fast, low-doc loans over a maximum term – and this revamp of Banjo’s product suite provides SME’s access to more affordable solutions in financing their growth,” Chong ended.
