AFG welcomes fintech to its lender panel

by Madison Utley28 Aug 2020

Australian Finance Group (AFG) has welcomed a Credit Suisse-backed fintech to its panel of specialist lenders.

Tradeplus24 employs a model which uses insurance to underwrite a pool of SMEs' account receivables, minimising the risk for funders and enabling the group to offer simpler, lower cost lending.

Now, AFG’s network of nearly 3,000 finance brokers will be able to offer Tradeplus24’s loan product.

According to managing director Adam Lane, Tradeplus24’s offering provides SMEs access to a more convenient and affordable way to optimise their balance sheet without requiring property as collateral.

“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,” Lane said.

“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 offers lines of credit ranging between $500,000 and $10m, positioning the group to meet the needs of a “significantly underserviced” portion of the Australian market; many alternative lenders cap loan sizes at $250,000, while traditional lenders struggle to structure cashflow finance under $5m without property security, leaving a “big gap” in the middle the group aims to fill.

AFG head of sales and distribution Chris Slater said Tradeplus 24’s “quality and innovation” in lending is exactly the type of offering the aggregator wants to make available to consumers through its network.

“We are very pleased to welcome Tradeplus24 onto our panel,” he said.

“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."