An SME lending platform has launched a tool to help finance brokers better source loans for small businesses.
Small-business lending platform lend.com.au (Lend) has announced the launch of its new broker platform to help finance brokers better source funding for small to medium enterprises (SMEs).
The platform is designed to provide finance brokers with the most suitable lender for their client’s business based on a business profile.
“The new technology is designed to free up time for brokers who are currently spending several hours per client, working with multiple lenders to find the best loans for SME clients,” Lend co-founder and chief executive Bill Baker said.
Lend estimates that an SME finance broker will save up to four hours per client using the platform through features such as the single application facility, instant analysis of loan applications and best lender matching technology.
The non-bank lender estimates that 30 per cent of the platform’s monthly volume is now attributed to broker partners.
Lend also launched LendScore, a tool available to brokers through the platform, which provides brokers a score on the likelihood of their client’s loan getting an approval from a lender.
Brokers can upload their client’s bank statements into the tool, which will then calculate a customer’s score out of 100 using predictive modelling techniques. Lend estimates that a score of 65 and over usually indicates a business has a strong chance of a loan being approved.
Mr Baker said the platform is broker-driven, with the firm consulting with brokers throughout the development of the platform for feedback.
“For instance, one of the key requirements from brokers, which has been built into the platform, was their desire to retain control over their client relationships,” Mr Baker said.
“SME communications include the broker’s logo, and brokers can control the lender options provided to their customers.”
Mr Baker said Australia’s $700-million alternative lending market is set for major changes, predicting the alternative lending market will grow to over $2 billion by the end of 2021, commission rates for brokers will fall, and the industry will undergo consolidation due to the impact of technology on the marketplace.