A non-bank lender has gotten the green light to roll out the federal government's SME Guarantee Scheme, enabling the group to now provide support to small and medium enterprises (SMEs) affected by the COVID-19 pandemic.
Moneytech joins the panel of lenders available for Phase 2 of the scheme. Now that it has been approved, the group can offer small businesses loans of up to $1m until 30 June 2021.
Under the scheme, the federal government will be guaranteeing 50% of new loans issued by participating lenders such as Moneytech.
Nick McGrath, Moneytech CEO, said SMEs will be able to access cheaper loans and streamlined settlement process under the scheme.
"The past few months have been challenging for most operators, but this shouldn’t automatically exclude businesses from receiving finance at a time when they need it most," he said.
McGrath believes non-bank lenders play a crucial role in bridging the gap in providing finances to SME businesses, especially as traditional lenders have started to scale back.
"For us, it has been business as usual in an unusual time. We’ve continued lending to new customers, and supported our existing customers with the additional funding they need to help them through this period," he said.
McGrath said there are expectations of increased uptake in the group's loan products such as its Line of Credit, Debtor Finance, and Trade Finance & Equipment Finance.