In a bid to compete head on with the traditional banks, a fintech lender has secured an additional $250m to fund Australia’s small businesses.
In addition to the new funding, Moula has extended its loan terms from 24 to 36 months and doubled its maximum loan value from $250,000 to $500,000. Pricing starts from 15.95% APR and is said to be “unprecedented” in the online unsecured business lending space.
CEO Aris Allegos said, “Until now, online business lenders have competed with banks on speed, ease of application and customer service. However, competition based on pricing has been largely absent.
“Injecting a quarter-of-a billion dollars into Australia’s businesses and making our financing terms more flexible, will ensure that hard-working business owners aren’t locked out of accessing funding and are able to seize growth opportunities with confidence,” he added.
The new funds and terms allow Moula to better compete with the major banks, and the lender is confident it can do so while maintaining the integrity and customer-mindedness encouraged by the royal commission.
Allegos said, “A banking system focused on customer outcomes and characterised by transparency is critical in servicing the needs of the consumer. Post Hayne, we’ll start to see better pricing terms and product experiences, which is great news for business owners and consumers.
“Transparency is key – we don’t have any hidden fees or penalties should a customer choose to pay early. When we quote our interest rate it’s one simple rate and nothing else. That was a radical move we made when we founded Moula it’s a principle we’ve stuck to, and we’re still the only ones doing it,” he added.
As Moula has grown it has been able to service larger, more established businesses in addition to its original target demographic.
The lender credits its continued success to its reliance on both advanced technology and a “team of real people” who assess the individual circumstances of each business loan applicant.
“Moula has emerged as a strong and legitimate alternative to dealing with mainstream banking. [We] believe that business financing shouldn’t be difficult, time-consuming or expensive,” Allegos concluded.
