SME lender leading the way with new bridging finance solution

SME lender leading the way with new bridging finance solution

A new bridging finance product means SMEs no longer need to be in a holding pattern while they wait for the proceeds of an asset sale or property transaction, according to Banjo Loans.

One of few Australian fintechs to offer an SME-specific bridging finance product, Banjo’s aim is to help businesses keep powering their growth uninterrupted.  And there’s no lengthy wait for approval.  Following application, an SME can expect an answer either way in as little as 48 hours.

Banjo’s Single Pay is now available to approved borrowers* for terms of two to six months, and is interest expense only, with the principal paid at maturity.

“We’ve seen a lot of pent-up demand to release working capital that’s tied up in a range of scenarios from asset sales, to property settlements or refinancing between banks,” said Guy Callaghan, CEO of fintech Banjo Loans.

“SMEs are keen to avoid the stress of managing cashflow while waiting for the proceeds of the business transaction.”

“Yet understandably, many can’t face jumping through the lengthy, complex hoops required by traditional lenders, just to secure a short-term loan to tide them over.”

“Single Pay can be turned around quickly, so businesses needn’t miss a beat.”

“For example, one of our clients is a wholesale business that’s refinancing between banks.  The incumbent bank required all existing loans to be fully paid out before releasing their security interest.  The new bank can’t provide the new loan until this is done.  Banjo has been able to provide the business with Single Pay to fully settle the old loans.  This has then freed the business to take up its loan with the new bank,” says Callaghan.

Brokers can apply on behalf of their clients via the Banjo partner portal.  The fintech lender’s BDMs are also available to workshop scenarios with brokers.

*The secured loan is available to approved businesses established for more than 2 years, with annual sales of over $500,000.