Banks & large financiers…your move on SME Lending

Published: 08/30/2022

There’s an undeniable shift in the business lending market. It’s accelerating amidst the backdrop of falling property prices, increasing interest rates and the rising cost of living. Aussie SMEs are being left frustrated by the banks inability and unwillingness to provide them with short term financing solutions. That’s despite the banks hyper focus on their SME product portfolio as they chase margins outside of their property backed books that have served them so well up until this point.

As property backed business loans become harder to access, businesses around the country are left with cash flow problems and shrinking access to working capital. All whilst they continue to struggle with their COVID hangovers and a strained supply chain.

Invoice Financing, or operational loans are consequently seeing a surge in interest. Businesses are desperate to improve their cashflow and maintain growth in the current climate of uncertainty. As more and more Aussie SMEs turn to invoice financing for their short-term working capital needs, they’re realising just how wide the gap has become from the products they’ve historically been accustomed to. Suddenly they’re enjoying technology that evolves alongside their business, a product that’s simple and easy-to-use, round the clock support from specialists who understand their needs and intuitive admin – onboarding, credit assessment and risk analysis – that ultimately lightens their load. Better still they’re getting the funding they need in a matter of hours.

So now we’re all left wondering how the banks and large financiers respond to this shift in the market? They need the platforms, products and means to evolve with their business customers. Some, like CBA have already made their move into invoice financing through partnership and are enjoying the rewards of being first to market on new tech. Other big players are trying to work with what they’ve got, which unfortunately isn’t much. Most are sitting on their hands and watching businesses walk out the door at an alarming rate.

As margins continue to be squeezed on property backed loans, all are critically assessing their SME lending offering to better understand how they’ll pivot alongside their customers. SMEs they’ve historically been able to serve adequately with competition only coming from their peer group.

The good news is Grapple can help. We’re able and willing to work with banks and larger lenders to plug the gap in your SME offering. We can partner, build, and white label our LendTech platform to be fully integrated with a larger provider’s risk metrics. Australian owned and operated, Australian made, we’ve built our platform with partnership in mind.

We remain in fruitful discussions with willing partners, but we think there’s more out there. Be the goal a referral agreement, licensing deal, custom integration, white labelling, or end-to-end partnership, our pitch to you is to consider Grapple as you start your evolution. Let’s explore what we can do for you and your customers. If your end goal is to serve even more Aussie SMEs, or just serve them better we’re already aligned. That’s what we do…

Stephen Dawson, Grapple Founder & CEO