Reckon smashes $10 million loan milestone for Aussie small businesses

Australian cloud accounting provider Reckon’s (ASX:RKN) strategic partnership with leading fintech outfit Prospa has hit yet another milestone for the burgeoning non-bank finance sector, delivering over $10 million in funds to small businesses across the country within its first 18 months. The continued growth of the Reckon Loans platform further cements the role of small businesses – the engine room of Australia’s economy – in fuelling the nation’s fintech revolution.

Launched late-July 2016, Reckon Loans empowers small businesses with swifter loan processes and easier access to capital, with the approval of funds from $5,000 to $250,000 available within one business day and no security required to access up to $100,000.

Prior to the rise of online lenders, the main source of funding for small businesses came in the form of traditional banks, where loans could take weeks to approve – but not before sharing full-fledged business forecasts. Reckon Loans offers applicants the ease of unsecured loans, with no need for collateral, a well-established credit rating, or equity in physical property, which can be a challenge to prove for sole traders and small business owners hesitant to borrow against their homes.

According to a recent survey of 1,150 small business owners by Reckon, over half (57 per cent) of respondents have used their personal credit card to process work related payments.

Highlighting the importance of access to finance for small businesses, close to a third (30 per cent) of respondents are also currently using a loan facility – including funding from traditional banks, online lenders, family, friends or venture capitalists. An overwhelming majority (74 per cent) would still turn to traditional banks as the first port of call, followed by their family (20 per cent), demonstrating there is still a long way to go to raise awareness of alternative loan options.

However, Sam Allert, Managing Director ANZ at Reckon, noted an upward trend with small businesses increasingly turning to alternative non-bank lenders to gain access to critical finance.

Source: Press Release: Reckon Smashes $10 Million Loan Milestone for Aussie Small Businesses