The non-bank has expanded its loan limit, so SMEs can borrow up to $500,000, as the lender prepares for a pick-up in demand.
Non-bank lender Banjo Loans has doubled the maximum amount available through its Express Loan product from $250,000 to $500,000.
Banjo said the move was driven by stronger demand from small- to medium-sized enterprises (SMEs) across Australia.
Banjo’s Express Loans aims to give SMEs quick access to funds with minimal documentation, often relying solely on 12 months of bank statements and ATO portal data for assessment.
The approach aims to help accelerate loan decisions to 24–48 hours, compared to traditional business loans that can require extensive documentation.
Express Loans from $20,000–$500,000 are offered on terms of up to five years.
To be eligible, SMEs must have been trading for at least two years and be generating annual sales of more than $500,000.
The small business lender said the changes to its lending product would benefit Banjo’s broker network, which can already use tools like Equifax’s Brokerflow to collect client bank data and submit applications quickly, streamlining the process for brokers and clients.
Brendan Widdowson, Banjo Loans chief commercial officer, said businesses were often under pressure to borrow money quickly.
“A classic example is when a business wins a large contract and suddenly needs to hire staff or purchase raw materials to deliver on that contract. In these cases, they need the funds immediately, and that’s where we often step in to help,” Widdowson said.
Commenting on the expanded lending limits, Widdowson added: “By bolstering our Express Loan offering and allowing SMEs to borrow up to $500,000, we’re helping to meet this demand with speed and flexibility.”
Banjo has suggested that SME lending is expected to increase this year, particularly as the Reserve Bank of Australia (RBA) reduces the official cash rate.
Following the third rate drop of the year last month, Banjo Loans CEO Guy Callaghan said the change would help ease financial pressure on SMEs, improve cash flow, and restore confidence for business owners looking to expand.
“Lower interest rates can help in a number of ways, including reducing loan repayment costs, improving cash flow and, nearly the most important, restoring confidence for business owners looking to invest or expand,” he added.
“We encourage SMEs to review their current finance arrangements and explore options like refinancing or loan restructuring.
“With the right finance partner, businesses can make the most of this rate cut and set themselves up for growth.”
However, the lender cautioned that while rate cuts are welcome, more support is needed from the government to help SMEs fully benefit from the easing cycle.
“We need to see targeted support, such as low-interest government-backed loans, innovation grants and refinancing assistance, to help businesses take advantage of the changing economic environment,” the Banjo Loans CEO said.
“We’re finally seeing signs that inflation is stabilising.
“It’s vital that the government avoids overspending, which could reverse these gains. SMEs, families and the broader economy all benefit when inflation is under control.”
[Related: SME borrowing climbs amid cost pressures]
