Powered by MOMENTUM MEDIA
the adviser logo
Lender

Banjo launches bridging finance offering

by Annie Kane5 minute read
Banjo launches bridging finance offering

The SME lender has launched a new bridging finance product to help businesses grow “uninterrupted” by delays.

Banjo Loans has officially launched its new SME-specific bridging finance product, Single Pay.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The product, which had been in soft launch via the broker channel, is available to businesses that have been established for more than two years, with annual sales of over $500,000.

The secured loan is available on terms of two to six months, and is interest-expense only, with the principal paid at maturity.

Advertisement
Advertisement

Brokers can apply for the bridging finance loan on behalf of their clients via the Banjo partner portal from today (12 July).  

It said that it can provide credit decisions “in as little as 48 hours”.

According to Banjo, the new offering aims to reduce the time it takes for SMEs to access finance to grow, by removing the “holding pattern” of waiting for the proceeds of an asset sale or property transaction. 

Guy Callaghan, CEO of Banjo Loans, commented: “We’ve seen a lot of pent-up demand to release working capital that’s tied up in a range of scenarios from asset sales, to property settlements or refinancing between banks.

“SMEs are keen to avoid the stress of managing cash flow while waiting for the proceeds of the business transaction. Yet, understandably, many can’t face jumping through the lengthy, complex hoops required by traditional lenders, just to secure a short-term loan to tide them over.

“Single Pay can be turned around quickly, so businesses needn’t miss a beat.”

Mr Callaghan gave the example of a wholesale business client that was refinancing between banks and utilised the fintech’s bridging loan.

“The incumbent bank required all existing loans to be fully paid out before releasing their security interest, [and] the new bank couldn’t provide the new loan until this was done.

“Banjo was able to provide the business with Single Pay to fully settle the old loans. This has then freed the business to take up its loan with the new bank,” Mr Callaghan explained.  

Single Pay is the latest new offering from Banjo, which earlier this year launched a short-term working capital loan for small businesses.

The Banjo Supply loan provides unsecured businesses loans to small businesses seeking funding of between $5,000 to $25,000 over terms of one to three months.

It aims to help small and “microcap” businesses – particularly those in hospitality and retail – that need short-term working capital to pay suppliers, batch up payments to multiple creditors, and potentially negotiate supplier discounts.   

[Related: Banjo launches short-term, unsecured loan for SMEs]

 

sme small business

Annie Kane

Annie Kane

AUTHOR

Annie Kane is the editor of The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

ABA finalists

Finalists for 2022 Australian Broking Awards revealed!

Run with the support of principal partner NAB, the Australian Broking Awards – which is now in its 12th year –...

READ MORE
Anthony Albanese new ta

Home owners in flood regions offered cash payments

Speaking at a press conference on Wednesday (6 July), Prime Minister Anthony Albanese confirmed that residents in the...

READ MORE
Sam Henley

Fifo invests further into BDM team

According to Fifo Capital (Fifo), Sam Henley joined the lender as its senior business development manager –...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more