Digital Finance Analytics (DFA) Blog
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An insolvency firm is warning brokers that small business owners looking for finance are becoming more and more likely to break the law, via Australian Broker. The group, Jirsch Sutherland, said with the property downturn and possible negative gearing changes, directors need to be protected by Safe Harbour regulations. Alongside uncertainty in the residential property … Continue reading “Warnings to SMEs seeking finance”
As expected we are seeing the Government do “unnatural acts” to support the banking sector, in an attempt to alleviate the home price falls and lending freeze ahead of the election next year. The proposed $2 billion funding pool is small beer in the estimated $300 billion SME lending sector. There is precedent a decade … Continue reading “Government launches $2bn fund for SME lenders”
Following consultation, ASIC has set a three-year period to be used by banks and credit providers when assessing a new credit card contract or credit limit increase for consumers. From 1 January 2019, under the revised responsible lending obligations, a credit card contract or credit limit increase must be assessed as unsuitable if it is … Continue reading “ASIC prescribes three-year period for credit card responsible lending assessments”
New data from one of Australia’s biggest insolvency firms has revealed there are nearly 10,000 small to medium businesses on the brink of collapse, and experts says business strength is unlikely to improve, via SmartCompany. The SV Partners Commercial Risk Outlook Report for August 2018 shows there are 9,948 businesses with annual turnover of less … Continue reading “SME Insolvencies On The Rise”
From theBankDoctor. Prospa’s impressive growth trajectory is set to receive a boost when it becomes Australia’s first online small business lender to list on the ASX. But the prospectus exposes issues of transparency for the acknowledged market leader in what is a largely unregulated market. Propsa will raise $146m of new capital of which $100m … Continue reading “Lack Of Transparency In Unregulated Non-Bank SME Lending Market”
As the Royal Commission’s third round of public hearings casts the spotlight on Big Four banks and SME lending, Fintech Moula says another spotlight is cast on fintechs who have stepped up to address the gap in market left by banks and traditional lenders. Moula CEO Aris Allegos said: “SMEs make up over 97% of … Continue reading “Fintech’s May Be The SME’s Champion”
The online small business lending market in Australia is growing at a faster rate than the US market did at a similar stage of development and could reach over $2 billion in annual originations by 2020, Noah Breslow, OnDeck Global CEO told the AltFi Australasian Summit in Sydney. “Having grown at a compound annual growth … Continue reading “Online SME lending growing at 79%, could hit $2B by 2020”
The latest edition of the Scottish Pacific SME Growth Index has been released. It gives an interesting snapshot on the critically important SME sector in Australia. Once again, as in our own SME surveys, cash-flow is king. 90% of SME owners said they faced cash-flow related issues. That said, the non-bank sector, including Fintechs need … Continue reading “SME Funding an Issue Says New Report”
From Australian Broker. ANZ and Westpac Group are said to have introduced confidential changes to their assessment and approval of borrowers. The Australian Financial Review reported yesterday (15 February) that ANZ was clipping the discretion of its frontline mortgage assessors. A spokesman for ANZ said the bank recently added “a higher level of approval for some discretions” used in its home loan policy for assessing serviceability. The spokesman said the move … Continue reading “Major banks toughen serviceability assessment”
In a nod to the emerging Fintech SME lending sector, NAB today announced $100,000 unsecured lending for Australian small business owners to grow and expand, backing the strength of their business without the need for security requirements such as property or cash, with a decision is around 10 minutes. As we discussed recently, getting funding … Continue reading “NAB Launches Online SME Unsecured Lending Product”