Even before the COVID-19 pandemic swept the globe, small and medium sized businesses were struggling to secure the finance they needed to thrive from mainstream banks; for one lender, crafting an offering to help address SMEs’ plight – and being willing to lend to small businesses freely, even given the events of the last year – has resulted in the group seeing month after month of double-digit origination growth, both throughout the pandemic and beyond into the COVID-normal period.
Bizcap has provided finance to hundreds of SMEs since the impacts of COVID were first felt, charting funding growth of over 275% in the past 12 months.
According to Bizcap co-founder and joint managing director Zalman Blachman, this commitment to helping SMEs grow, in any market and under any circumstances, was one of the pillars on which the company was founded in 2019.
"Our goal is to provide Australian SMEs with access to the capital they need to support their growth, and we aim to do this with ease and efficiency,” Blachman said.
The co-founder added that Bizcap likes to think of itself as “Australia’s most open-minded lender”, as the group looks beyond the traditional methods of assessing a loan application – an approach particularly important in light of the unusual operating environment created by the pandemic.
Further, the group has embraced deals of all sizes, having recently issued many loans in the $200k to $600k range. The fintech believes its ability to turn around these larger deals with the speed and ease typically associated with smaller sums is one of the key points of difference setting Bizcap apart from other players in the SME finance space.
If an SME has an ABN, has been in business for at least six months, and has an average monthly turnover of $10,000 or more, Bizcap is there to provide a quick and effective funding option. The group’s same-day approval and funds deposited helps borrowers and brokers alike avoid the time suck of lengthy phone calls or filling out mountains of paperwork.
Customer Anthony Scarcella of A1 Fitness Supplies is one of the many SME owners to have benefited from the speed of action enabled by Bizcap’s agile fintech infrastructure. He originally reached out to the non-bank as he needed access to funds to take advantage of an opportunity he saw in the market during COVID-19.
“We needed to act quickly, and Bizcap helped with that. The paperwork is minimal – and, in business, time is money,” Scarcella said.
Another Bizcap customer, Robert Rachella of S & M Metals in Queensland, echoed Scarcella’s sentiments.
“It’s really no-nonsense. With Bizcap, there’s no red tape – we get straight to the point and continue doing business,” he said.
Recent research from the Reserve Bank of Australia (RBA) shows small businesses have been twice as likely to record a decline in revenue in comparison to large companies over the course of COVID, due to their strong representation in the sectors that have been hardest hit by the pandemic, including recreation and hospitality industries.
As such, access to finance has never been more vital for SMEs – and Bizcap will continue to be there to meet the need and “find [the] reason to write the deal”.