Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Broking ‘a very efficient channel’ for SMEs

Francesca Krakue 4 minute read

The chief executive of an alternative small business lender says the third-party channel is highly effective in helping businesses access the right capital.

“Approval rates are a lot higher than, say, your direct channel, for example. And that’s progressively gotten better,” Moula co-founder and CEO Aris Allegos told The Adviser.

Education and awareness about healthy business loans has resulted in small business lending approval rates increasing in the third-party channel.

“What we’ve found is that, if we’ve educated brokers with respect to the appropriate parameters [of a suitable loan], then the bulk of referrals that come into our platform can be fulfilled,” Mr Allegos said.

Advertisement
Advertisement

“In terms of high-level criteria, what we’re looking for is around 12 months of being in business. Another is the minimum revenue threshold... if you’re making $5,000 per month, that qualifies you to apply. And the third is credit quality. But the crux of it is very much [about] understanding time of business and cash flow.”

Mr Allegos said brokers should not “over-engineer the process with a lender”.

“We’ve built platforms that enable us to extract all the data on behalf of the broker… the education piece is very important so they can manage their customers, but not over-engineering it means that they can continue doing what is their core business.”

While small business lending is a “nice add-on”, brokers should continue working on their core business and be mindful of where they refer business, he added.

“The customer’s satisfaction is critical here to ensure the broker maintains the ongoing relationship.”

PROMOTED CONTENT


[Related: New lender to ramp up broker distribution]

Broking ‘a very efficient channel’ for SMEs
default
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

default

 

more from the adviser
amanda stoker 850 ta

Breaking News

Assistant Minister for Women shares tips for women in finance

Senator Amanda Stoker, the Assistant Minister for Women, has shar...

money au ta

Breaking News

Business lender receives $87.5m ABSF investment

GetCapital is set to receive $87.5 million worth of mezzanine fun...

house construction new ta

Breaking News

Hot Property: The biggest property headlines from the week 13-17 September

The weekly round-up of the biggest news stories from across Momen...