Non-bank launches "bankless" overdraft

The new product aims to fill gap in broker market

Non-bank launches "bankless" overdraft

News

By

The “bankless” business overdraft of non-bank lender GetCapital is seeking to establish itself as a core working capital solution for brokers, five months after launching. 

Following the move of traditional banks to significantly reduce lending to small businesses, non-bank lender GetCapital said it saw an opportunity to offer a standalone business overdraft to serve as a working capital for growing businesses of varying sizes.

The “bankless” overdraft can allegedly link to any Australian business account, meaning that GetCapital is entering a territory that has been traditionally held by banks, according to GetCapital CEO Jamie Osborn.  

“Our business overdraft offers businesses of all sizes access to working capital through an online platform that provides them with control, transparency and ease of transacting – it offers a genuine alternative to a bank overdraft,” said Osborn.

He continued, “We have been pleasantly surprised with how quickly the broker market has embraced the offering. In our first few months, we have provided over $50m in limits.”

He added, “Brokers account for over 60% of the asset finance originations, however they tell us they only write a small volume of overdraft facilities because it has traditionally been 'owned' by banks. The opportunity for brokers is that, for the first time, they can offer their clients an easily accessible overdraft facility.”

The proprietary technology utilises GetCapital’s bank connect technology to allow customers to control their funds with “seamless and real-time links to external business bank accounts”.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!