The non-bank lender has revealed two new business products designed to address SME cash flow issues and assist them with securing funding.
Liberty Financial has introduced Liberty Mint, which can provide SMEs with secured business loans of up to $3 million, and Liberty Access, which offers a flexible line of credit of up to $1 million.
John Mohnacheff, Liberty Financial group sales manager, said that with spikes in coronavirus cases in Victoria and NSW, small businesses are still vulnerable.
“For many, securing the right type of finance will be integral to their long-term business continuity – and may even be a deciding factor on whether they can keep the lights on,” Mr Mohnacheff said.
“We’ve listened to brokers and what we have heard is that small businesses need a lifeline. We believe our new Liberty Mint and Liberty Access products will complement our existing offering and allow us to provide brokers with solutions to suit a diverse range of SME customer needs.”
Mr Mohnacheff also said that with the federal government’s JobKeeper stimulus package set to decrease in October, and with Victorian businesses forced into stage 4 lockdown restrictions, cash flow is likely to be an ongoing significant concern for many SMEs.
July data from the Australian Bureau of Statistics (ABS), showed that almost half of all businesses (47 per cent) reported that revenue had decreased in the previous month, while for the next month, 27 per cent expected revenue to decrease.
Two in five Australian businesses, or 42 per cent, are currently accessing support measures such as deferring loan repayments, wage subsidies or renegotiating rental or lease arrangements to manage the impacts of COVID-19.
Sue-Ellen Luke, ABS director of technology, innovation and business characteristics statistics, said: “One in 10 businesses (10 per cent) reported that if support measures were no longer available, they would expect to close the business.”
The non-bank lender stated that it has established a dedicated business lending department to support its business partners and brokers.
[Related: Heritage launches new SME product]
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
The federal government has released final regulations that define...
Nearly a quarter of those Australians who have dipped into their ...
The association for customer-owned banks has said that the MOU be...