SME lender Fifo Capital has introduced a new credit policy stream designed to better support “stronger businesses” across Australia.
The revamped policy provides a premium service for certain businesses that promises “higher priority, less security, better pricing, and quicker approval”, according to Fifo Capital CEO Wayne Morris.
“When working with Fifo, you’ll find there are two ways of working with us. The old way and the new way,” said Morris (pictured above).
“When you need a flexible solution for an SME who doesn’t quite fit the box, the old way is still there to support your clients. But the new way means businesses can access our facilities faster and can start using them in their businesses quicker too.”
Fifo Capital: In with the old, in with the new
Having supported over 3,000 businesses in Australia with nearly $3 billion in finance, Fifo Capital’s original pitch still connected with the market.
The idea behind its products is solving cash flow or working capital problems for small business clients, which is a growing problem in 2024.
“Whether it’s de-risking late payments from customers, accelerating payments, or maybe paying suppliers on better terms without disrupting relationships, we are all about helping a client pay and get paid on better terms,” Morris said.
However, with any growing network, a business’ services can quickly become engulfed within its own processes without some finetuning.
Morris insisted that the “old way” – the company’s original credit policy stream – is still “very much there” and useful.
“The old way we would work is that we look to support every SME that’s out there,” Morris said. “We consider ourselves to be not fair-weather friends – in other words, we are there for the duration of the time for the SME.”
Morris said the COVID-19 pandemic was a “great example” that showcased how the standard process helped businesses through tough times.
“We supported them through that treacherous time even offering them larger facilities to help them keep their businesses afloat.”
Building better relationships with brokers and clients
While Fifo Capital's commitment to small businesses is admirable, Morris also acknowledged that this process takes longer for the company to process a deal.
“We can take longer than our competitors to do so and there is still an element of uncertainty whether we would give the approval.”
Morris noted that there are many times where businesses would still fit this category where it’s difficult to give them a standard facility.
In contrast, the new approach targets stronger businesses, offering expedited processing, reduced security requirements, faster approvals, and improved pricing.
This shift aims to enhance brokers' confidence in working with Fifo and deliver better outcomes for their clients.
“You’ll know that we didn’t increase our prices through COVID at anywhere near the same rate as banks or our competitors… I think we had one small increase,” Morris said.
Morris assured brokers of Fifo's dedication to maintaining transparent, supportive relationships.
“Relationships to us are core of what we do. Every broker and every client are valuable to Fifo,” he said.
“We are looking at offering better prices while lowering our cost to these stronger businesses and you can be confident at a yes when we give it to you and our credit decision as well.”
What do you think about Fifo Capital’s new credit stream? Comment below.
