Credit Suisse-backed and SME focused fintech Tradeplus24, has joined the Australian Finance Group’s panel of finance providers to offer its loan product.
AFG is an Australian mortgage broking group, with 2,975 finance brokers that work with close to 7,500 Australians each month, many of whom will be able to offer said product.
Tradeplus24 model uses insurance to underwrite a pool of SME’s account receivables. This removes risk for funders, and is said to enable it to offer simpler, more streamlined, lower cost, and lower risk lending. This will enable SMEs gain access to a more convenient and affordable way to optimise their balance sheet.
“We are delighted to be working with AFG and their introducer community in our mission to assist as many Australian SMEs as possible to access innovative finance solutions to manage their cash flow,”
said Adam Lane, Managing Director and ex-NAB exec of Tradeplus24.
“The distribution scale that AFG will provide will be instrumental in growing our business to become one of the fastest-growing business lending fintechs in Australia.”
Tradeplus24’s lines of credit range between US$500,000 and US$10 million and do not require property as collateral, making them well-positioning to support more than 2 million Australian SMEs producing US$577 billion of GDP, many of whom are struggling in the wake of COVID-19.
Credit of this size also allows Tradeplus24 to meet the need of a significantly underserviced part of the Australian market – alternative lenders typically cap loan sizes at US$250,000 but traditional lenders usually can’t structure cashflow finance under US$5 million without property security, leaving a big gap in the middle.
Chris Slater, Head of Sales and Distribution at AFG, said that this is the type of quality and innovation in lending that they wish to continuously offer to their network of 2,975 brokers.
“Feedback from our team was that the Tradeplus24 product would bolster our offering in the receivables space. Helping our brokers access the most innovative products in the market is a core principle of AFG and I am confident our partnership with Tradeplus24 will give our brokers choice when finding cash flow solutions for their SME clients.”
This article first appeared on fintechnews.sg
