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.

Swiss SME lender enters Australia

kelvin rossely adam lane ta kelvin rossely adam lane ta
Reporter 4 minute read

A Switzerland-headquartered alternative lender is expanding into Australia, its first international market, with an ex-NAB executive to take the helm. 

Tradeplus24, a Switzerland-headquartered alternative lender, is set to launch in Australia, after raising 120 million CHF (AUD$ 173.6 million) in debt and equity in February.

Former NAB general manager for business banking, Adam Lane, will lead Tradeplus24’s Australian operations as managing director.

“We’ve enjoyed immense and rapid success in our home market of Switzerland in just two years of operations, including attracting investment from the likes of Credit Suisse, SIX Group and Berliner Volksbank, but we always had global expansion in mind when we developed the business,” Mr Lane said.

Advertisement
Advertisement

Australia was chosen as Tradeplus24’s first international market due to “a significantly underbanked niche caused by alternative lenders typically not providing loans above $250,000 and traditional lenders struggling to structure cash flow finance smaller than $5 million”.

In addition, Mr Lane noted that traditional lenders in Australia typically require SME borrowers to use residential property as collateral. Compounding this issue is the nation’s ongoing housing market slump.

“Australia’s weakening housing market is also compounding the inability of business owners to secure funding by offering property as collateral for further borrowing, with many ‘running out’ of adequate security to offer,” the Tradeplus24 Australia managing director added.

Another reason why it made sense for the lender to expand into Australia, according to Mr Lane, is the credit squeeze brought on by the banking royal commission.

“The banking royal commission has put everyone on notice when it comes to credit; there is simply less of it flowing through the economy as a whole,” he said.

PROMOTED CONTENT


“These factors combined create an urgent need for more innovative business credit solutions which don’t require a borrower to put up property assets as collateral.”

Tradeplus24’s variable credit lines range between $500,000 and $10 million and do not require the use of residential property as security. Instead, the lender securitises and uses insurance to underwrite the account receivables of small and medium-sized businesses.

The lender’s technology assesses SME supply chain data and calculates risk down to individual invoices in real time.

Tradeplus24 said it is currently in the “advanced stages of negotiating a nine-figure debt facility”.

[Related: ]

Swiss SME lender enters Australia
kelvin rossely adam lane ta
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!

kelvin rossely adam lane ta

 

more from the adviser
Greater Bank Newcastle Perm merger

Breaking News

Bank CEO pledges to maintain broker offering following merger

The CEO of Newcastle Permanent has said the lender will continue ...

Money jar

Breaking News

bcu launches $5k cashback offer

The customer-owned bank has released a cashback offer for new and...

RBA

Breaking News

RBA makes cash rate call as lockdown drags on

The central bank has delivered its rate decision for August as th...