The SME lender has created a new low-doc loan for cars, vans and utes that require no deposit.
Non-bank business lender, Grow Finance (Grow) has launched a new product for SMEs buying Tier 1 assets (cars, vans and utes).
The Low Doc No Deposit Asset Finance loan provides up to $75,000 to business owners, whether property-backed or not.
It reportedly requires “minimal documentation” and offers a no deposit option for non-property owners.
Greg Woszczalski, co-chief executive of Grow, said the no-deposit offering for non-property owners was “significant as it bucks the trend of only providing this style of finance to property-backed clients”.
“Consequently, our goal is that the product enables SMEs to redirect the deposit back into their business to smooth out working capital and support growth,” Mr Woszczalski said.
The lender stated that the product had been launched off the back of demand for products that could provide “rapid access to a business-critical asset”.
It added that its AI-backed real-time assessment platform meant that applicants could also receive instant approval.
“We’ve created Low Doc No Deposit Asset Finance product to remove the burden of large upfront capital requirements often faced by non-asset-backed business operators when seeking motor vehicle finance,” David Verschoor, co-CEO of Grow, commented.
“Its launch is particularly timely given the continually increasing operational costs.”
The Low Doc No Deposit Asset Finance product comes off the back of Grow’s Low Doc Balloon Refinance product, which was launched earlier this year and forms part of Grow’s “next-generation product development”.
This product, which enables borrowers to access up to $150,000 to refinance balloon payments on cars, vans or utes for up to five years with minimal financial information (without requiring bank statements or on-site valuations for standard assets), aimed to “release SMEs from the cash flow pressure created by residual payments at the end of the loan term”.
The end of financial year is typically a busy time for small-business finance, as SMEs make last-minute deals, purchase new stock and take advantage of the last few weeks of the tax write-offs for the year.
You can find out more about how brokers can help SMEs access finance in the June edition of The Adviser magazine, out now.