SME lender Banjo Loans goes from strength to strength to back small business growth

Emerging from the pandemic years, leading fintech SME lender, Banjo Loans is growing at pace with a loan book that doubled in size year-on-year, new leadership appointments, and a ramped-up product pipeline.

Having held steady through the pandemic, Banjo is now experiencing strong growth in a sector buzzing with high demand and a low supply of higher unsecured loans in the market.

As the market rides the wave of inflationary pressure, the lender has recorded 200 per cent growth in outstanding loan book over 12 months and a 100 per cent increase in loan drawdowns, at the same time maintaining responsible lending practices with strong metrics on loan delinquency.

Banjo Loans CEO, Guy Callaghan, said small businesses have continued to show an increasing appetite for funding sources that are keen to help SME’s. They are much more open to Venturing beyond traditional banks as they finance growth.

“Sometimes it takes a small business to understand a small business. We have undergone the same growth phases as many of the businesses we work with, and it is this experience that we bring to help them grow and get the most from their business,” Callaghan said.

Earlier this year, Banjo secured an initial $100 million debt funding facility from a major Australian financial institution to leverage its growth and offer the SME market unsecured loans of between $20K and $1 million. To support its growth, Banjo is making multiple new hires across various business units. The team has grown by around 50%, including reshaping some key leadership positions.

Industry veteran Rick Sawers and Linktree’s Jessica Box have both joined the Board as non-executive directors, to help oversee the company’s growth and expansion.

Banjo co-founder and former chief risk officer, Andrew Colliver, also moves to a non-executive director role on the Board.

Callaghan said the shift would mean Colliver would be able to remain involved with the business.

“It’s a notable change to our leadership team and one we have been preparing for a while. Andrew has exceptional experience and insight which he will continue to provide from his new position on the Board,” Callaghan added.

Andrew Ward is stepping into his place as CRO. He will be responsible for developing risk maps and formulating strategic action plans for the business.

Callaghan welcomed Ward to his new role as chief risk officer.

“Andrew’s strong track record, in-depth risk expertise, and experience across Australian consumer and business credit mean he’s ideally suited to lead our risk function into the future. In addition, he has proven leadership skills which will enhance our team,” he said.

Banjo has also expanded its product offerings with additional working capital solutions designed to match the pace of the business and the marketplace.

• Loans up to $1m. Designed to address the increasing working capital needs, Banjo now caters for businesses with a more significant loan amount of up to $1m unsecured*.
• Increased loan tenor up to 36 months. SMEs who do not get paid within 12-18 months can now choose this option to help be more aligned with their cash flow cycle.
• Express applications for loans up to $250K. This easy to access solution is perfect for a small business that needs a short burst of immediate funding, with low documentation* requirements.
• Asset Finance solution, offers loans from $20k – $1m with 12-to-60-month terms

“With this advanced portfolio, we aim to make it easier for businesses to reduce non-price barriers to accessing finance. We’re automating the processes for small business lending and simplifying the application process, which in turn reduces processing times for our customers. We will continue to enhance our product offering,” Callaghan added.

Banjo’s latest annual SME Compass Report found that three in five SMEs were choosing funding alternatives to the banks, as interest rates on business loans are rising and obtaining finance through traditional channels remains a challenge for small businesses.

The fintech business lender has been one of few in the market to provide larger unsecured loans to bigger, more advanced SMEs through a quick digital process. With a core understanding of the SME value chains across sectors, Banjo can respond to SME and market demands more proactively than the larger incumbents.