Banks remain the biggest business lenders, issuing over 90 per cent of Small to Medium Enterprise (‘SME’) loans in the past year, however, recent banking decisions have forced businesses to look for funding options away from traditional bank lenders. Many are now exploring the FinTech sector to improve their cash flow and fund business growth.

According to a recent World Bank report, SME’s globally have unmet finance needs to the value of USD 5.2 trillion a year. On top of this, rising interest rates and growing economic instability are forcing banks to tighten their grips on business loans which are resulting in slow loan approval times and increasing credit requirements. An independent panel of 253 Australian SME business owners and decision-makers predicted that 76% of Australian businesses are expected to face a cash flow crisis by FY24, making it more important for these businesses to have access to sustainable cash flow solutions.

To help address this need, Australian FinTech Spenda, has recently secured a $50M warehouse facility. Due to their ability to combine lending and software to businesses, the Company has access to a wealth of transactional data that shows a clear view of a customers' underlying cash flows, providing them with a level of visibility to business health not available to traditional lenders. This data allows Spenda to make secure lending and payment offers to businesses that optimise trading relationships and provide greater flexibility to businesses. 

Spenda’s Managing Director, Adrian Floate, said: “As technology develops, the innovations in B2B payments continue to evolve and access to alternative finance channels is giving businesses the cash flow they need to grow and operate with ease. Spenda is leading the way, shaping a new norm for business relationships, and offering a connected solution designed to improve business efficiency and support growth.”

“If the pandemic has taught us anything, it is to always be prepared for uncertainty and ensure your cash flow is strong,” he adds. 

Corrie Hassan, Chief Credit and Risk Officer at Spenda added: “We have developed lending products that help businesses better balance their cash inflows and outflows, enabling them to keep on top of the cost of sales and expenses. Because we can capture a lot of business data, we are able to offer extremely competitive fixed interest rates to our customers.”

“As a general principle, our strategy focuses on lending to well-established businesses with a good track record, helping them grow and take their business to the next level.”