Turn debts into income
PROFITING from other people’s debts has always been popular way to make money, and investors seeking income are being given more choice than ever before. While interest rates wallow at record lows and are tipped to fall further, a new breed of peer-to-peer — or marketplace — lenders is gaining ground and other income funds are multiplying. Peer-to-peer lending — which removes middlemen such as banks and allows people to lend directly to borrowers via online platforms — is forecast to at least double in size every year for several years to come. RateSetter CEO Daniel Foggo says Australian peer-to-peer platforms funded $50 million of loans last year and that […]
LendingPost closes $100m in loans – set to revolutionise small business finance
Cheaper, faster, more flexible online small business loans – that’s the winning formula that has cemented LendingPost’s position in the finance industry. In fact, LendingPost.com.au has secured over $100m in small business loans in the last 3 years alone, proving their unique online loan matching service is a faster and easier way to get small business finance compared to traditional banking options. Founded as an alternative to big business finance, Aussie-owned LendingPost burst onto the finance scene in late 2013 by directly addressing a pain point of small business owners. “We know small business owners want the best deal but just don’t have the time to research, meet and speak […]
NAB eschews fintech push, keeps online business lending in-house
National Australia Bank has decided against partnering with a “fintech” company for its first automated online business lending product, ensuring a tighter grip on customers as the banks cautiously explore the burgeoning sector that threatens to eat into profits. The bank yesterday revealed QuickBiz Loan, one of the first products from in-house innovation hub NAB Labs, would be launched early this month, offering small businesses up to $50,000 unsecured via a new online application process. The move contrasts with Commonwealth Bank and Westpac, which are working on referral partnerships with business fintech lenders OnDeck and Prospa. NAB business lending division chief Angela Mentis said that while partnerships could be done […]
Celebrate innovation that puts the customer in charge
It’s no secret that the word innovation is in vogue. It’s not just that it’s one of our prime minister’s favourite words, it’s a trend across the English-speaking world. Use of the word has grown steadily since 1943, according to Google’s database of books published from 1800 to 2008. It was used almost twice as much in 2008 as 1969, the year humans first landed on the moon, and it’s a dead cert the past eight years have been no different. But using “innovation” as a mantra doesn’t make you more innovative. Many people feel that it’s become, or becoming, a meaningless catchphrase. It’s time to reclaim it. It’s a […]
FlexiGroup now funding Kikka’s business loans
FlexiGroup will become the sole funder of Kikka Capital’s business loans as emerging fintech players continue to reshape Australia’s shadow credit markets. FlexiGroup told the Australian Securities Exchange on Monday it had invested $2 million of equity into Perth-based Kikka Capital and provided it with a funding line. FlexiGroup will also use a “white label” version of Kikka’s platform to trial unsecured lending as a complementary offering to its secured asset financing operations. The deal comes less than a week after RateSetter Australia said it would start matching retail investors with business loans over its peer-to-peer platform. Meanwhile, loans by Moula are being funded by low doc lender Liberty Financial, […]
Fintech lender Spotcap provides $11 million of finance to small businesses in first year
In just one year online lender Spotcap has issued more than $11 million of credit lines to micro, small and medium-sized businesses in Australia. Spotcap exists to address the financing needs of small businesses which often struggle to secure funding from traditional financial institutions because of their size or lack of credit history. Since launching in Australia one year ago, the business has shown an average monthly growth rate of 30 per cent. Spotcap has rapidly expanded its local presence, growing from one to 10 staff members, to meet increasing demand for alternative finance. Lachlan Heussler, Managing Director of Spotcap Australia: “Since we launched we’ve gone from strength to strength […]
Crowd-funder CoAssets seeking ASX listing and raising
Perth and Singapore-based fintech player CoAssets has announced plans to list on the ASX in July alongside a capital raise of between $5 million and $10m. CoAssets, which describes itself as the biggest crowd-funding player in Southeast Asia, listed on the National Stock Exchange in July last year and is now seeking an ASX listing to push further into Australia and Asia. CEO Getty Goh said his company focused on the “sweet spot” of funding, addressing the $100,000-$5m range, a gap that was too small for banks to look at. “Unlike Kickstarter, the projects that we do are business projects, they’re not products or trinkets,” Mr Goh said. Mr Goh […]
DirectMoney unable to fully fund loan demand
Australia’s only listed P2P lender, DirectMoney, says it is unable to fully fund its loans and is asking borrowers if it can refer them to another lender. Chairman Stephen Porges said it is still looking for institutional funders beyond the one it has – Macquarie Bank – to fund the loan demand it has.Until it gets more institutional money he said it does not have enough cash to lend to all the borrowers applying for loans via its website. “The company remains intensely focused on progressing loan sales to institutions and development of a funding warehouse. At the same time we are rolling out a strong marketing program for [its […]
