Another non-bank has been confirmed as a selected lender under the government’s Coronavirus SME Guarantee Scheme, launched to support the flow of credit to small businesses through the COVID-19 pandemic.
Supply chain, trade and invoice finance specialist Fifo Capital is one of the the only lenders of its kind to be incorporated into the scheme, which sees the government guaranteeing 50% of new loans issued by such eligible lenders.
“Including non-bank lenders in the scheme demonstrates that every type of finance model is necessary to provide trading options to small to medium sized businesses at this time,” said Fifo Capital CEO Wayne Morris.
“Our inclusion in the scheme, along with other non-bank lenders, recognises the valuable role working capital and cash flow finance can play in stimulating the economy and supporting the SME sector.,” he added.
The lender reports it has been “business as usual” since the pandemic hit Australia in March, as the non-bank has stayed busy providing alternative finance solutions to the country’s SMEs.
“Our finance products effectively inject working capital and cash flow into a business on a rolling basis, meaning our clients have less dependency on business loans, but importantly, have cash on hand to support their businesses helping them to not only navigate the recession but also grow,” Morris said.
Fifo Capital currently boasts over 3,000 clients and has already reported being on track to pass the $2bn marker in total funding before the end of the calendar year; now, with this announcement, the group expects to accelerate even faster and further.
“Utilising alternative finance models has become even more paramount given the current climate. It’s about giving SMEs a broader range of finance options to suit their situations to create working capital and cash flow options," Morris concluded.