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A lender has rolled out a new offering which provides micro SMEs with a low-doc revolving line of credit.
Moneytech’s new business loan facility enables micro SMEs to apply for a line of credit between $50,000 and $250,000 and get an approval within one to two days and offers an 120-day repayment term.
The solution is aimed at supporting the ongoing funding needs of businesses with revenue above $700,000 per annum.
Nick McGrath, CEO of Moneytech, said as the first of its kind to be offered by a non-bank, the service addresses the needs of micro SMEs for a "genuine working capital solution”.
"Moneytech’s revolving line of credit has the flexibility to be used for whatever the business needs —paying for stock, bills, subcontractors, or paying down existing financing facilities," he said.
Approval decisions for the facility will be based on pre- and post-COVID trading conditions. McGrath said this is crucial, given the need for businesses to keep cash flowing.
"To assist those businesses who have experienced significant disruption to their operations, our new facility analyses before and after-pandemic sales and revenue before arriving at an appropriate decision for each and every customer," he added.
The facility employs an end-to-end digital experience, allowing brokers and direct customers to transact with ease; applications are lodged at via Moneytech’s online funding portal, the Moneytech Exchange.
"We have worked hard to ensure brokers and SME customers can enjoy a truly unique digital experience without needing to print a single piece of paper — from initial application, to signing official loan documents powered by DocuSign. It is a quick and easy digital process," McGrath said.
According to McGrath, the new offering will also expand the group's working relationship with brokers.
"For those who are small business owners themselves, our solution offers mortgage brokers an opportunity to further diversify their income stream into business lending," he said.
