The superannuation shake-up in the 2016 Federal Budget presents an enormous opportunity for peer-to-peer (P2P) lenders, according to one global P2P lender.
“The clampdown on contributions and transfers to superannuation will mean lower returns for investors, however peer to business lending is an alternative to low yielding shares and bank interest,” the CEO of ThinCats Australia, Sunil Aranha, said.
Aranha says the tax cut to 27.5% for businesses with turnover of up to $10 million will also play into the hands of P2P lenders.
“I expect this measure will provide a boost to peer to business lending as the owners will be seeking to supplement the funds freed up by the tax cut with borrowings to finance more staff and equipment.”
The CEO of the Council of Small Business Australia, Peter Strong, is praising the Federal Budget for offering more opportunities to P2P lenders.
“Peer to peer lenders like ThinCats are providing a viable alternative to the banks in supporting small businesses in Australia,” Strong said.
“The Federal Budget should spur on interest amongst the 2.1 million small businesses in Australia to access this form of lending.”
ThinCats Australia expects to significantly grow the number of lenders on its platform from the current 300 over the next year as a result of the tax measures announced in the Budget.