Grow flags steady demand for alternative working capital products

The non-bank identifies some key trends in the market

Grow flags steady demand for alternative working capital products


By Mina Martin

With specialist lending becoming both more common and more appropriate for many customers in the current, ever-evolving market, Grow Finance has flagged a steady demand for alternative working capital products from businesses.

Read more: Is specialist lending really that special?              

“There will be sustained demand for alternative working capital products to boost growth, particularly asset finance, invoice finance, and trade finance facilities to offset supply chain disruption,” said co-CEOs David Verschoor and Greg Woszczalski.

The non-bank lender is focused on delivering disruptive products, including product extensions, enhancements, and fusions that reduce cash-flow pressures in a volatile market.

Grow’s most recent offerings include a new low-doc refinance facility that enables SMEs to access up to $150,000 to refinance balloon payments on cars, vans, or utes for up to five years with minimal financial information; an extension of its business loan into primary agriculture; and increases in its Tier-3 Specialised Asset Low Doc product limit from $75,000 to $150,000, and its Easy Doc product limit from $150,000 to $250,000.

Verschoor and Woszczalski said there has been a high demand for asset finance for trucks, trailers, and materials handling. More SMEs are also seeking to hedge against supply-chain disruption by placing orders earlier and making larger orders to maintain a comfortable buffer of on-hand stock locally.

Other key trends, Grow said, include a sharp rise in fit-outs to accommodate increased patronage as COVID restrictions ease, plus a spike in home renovations that correlate with the widespread acceptance of the hybrid work-from-home model. Businesses are refurbishing or purchasing equipment as confidence increases and operations are adjusted to meet post-pandemic norms. Many businesses are also seeking to refinance debt to reduce cash-flow pressures. There has also been a notable rise in funding to support M&A activity for businesses keen to bypass organic growth.

In this rapidly changing market, brokers face the challenge of keeping up not only with business needs but also the huge number of lenders and their associated products. To help brokers overcome this difficulty, Grow said it has become a “one-stop shop” for asset finance and working capital solutions to enable SMEs greater access to aligned finance facilities.

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