International non-bank debuts SME offering

by Madison Utley26 Jun 2019

A global financial services provider has expanded its offerings in Australia to meet the lending needs of the SME sector, claiming “the market is there for the taking.”

Ebury established its Sydney office last year, initially offering foreign exchanged related products and services. Yesterday, it announced it would begin offering trade finance for unsecured payables and receivables with line sizes of up to $5m per client.

“Ebury is disrupting established banks, non-banks and so-called neo-bank lenders, who use outdated operational processes relating to factoring, invoice finance and import finance,” said Ebury Australia managing director, Rick Roache.

“While there has been innovation in the non-bank lending space, a lot of that disruption had been targeted at the smaller end of the market.

“Our clients require larger credit lines and have more complex needs. Most retail business lenders can’t or won’t meet these needs and are targeting business borrowers with smaller loan sizes, higher interest rates and longer terms,” he added.  

The fintech, which focuses on SMEs that trade internationally, utilises an online platform that provides cost transparency and only charges interest for credit used. The payable finance line offers up to a 150-day repayment period and the receivable finance product a 120-day repayment period.

Roache said, “We see a huge opportunity in supporting Australian SMEs, which research shows are experiencing a collective $80bn funding gap. SMEs have faced great difficulty getting capital for their business, especially those with volatile revenue and cash flow.

“It is not surprising then that more than 90% of SMEs are considering alternative lenders who provide rapid credit approval, especially those like Ebury who do not require security for funds borrowed. The market is there for the taking.”