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 and really hit our stride earlier this year. We’re looking ahead and expect the momentum to continue as we enter our second year of operations.”

These results indicate not only an increasing need for accessible finance, but also a willingness on the part of small business to look outside traditional banking relationships for financial solutions.

Jennifer Hart, Director of Everyday Cashmere based in Castlecrag, Sydney, borrowed $40,000 to purchase silk and cashmere yarn from Mongolia.

Jennifer Hart, Director, Everyday Cashmere said: “We needed funds to purchase materials out of season. Despite our impressive business growth the bank wouldn’t help us without my house as security. Our accountant referred us to Spotcap and we found the process was easy, pleasant and respectful.

“Having someone who believed in our business gave us the confidence to invest in groundbreaking materials to give us an edge over high street retailers.”

Spotcap has already helped hundreds of Australians businesses grow, these businesses are typically:

  • Looking for finance to manage working capital (42%), manage cash flow (25%) or purchase inventory (21%)
  • Likely to be more than five years old (58%)
  • Working in a range of industries including: Services (35.9%), Retail (21.4%),  Construction Services (10.1%), Transport (10%) and Manufacturing (9.9%)
  • Looking for $25,000 to grow their operations
  • Based in New South Wales (37%), Victoria (24%) and Queensland (23%)

In its second year of business in Australia Spotcap aims to triple the amount of credit it issues to small business. Spotcap will also continue its expansion into new industries and markets within the Asia Pacific region. Spotcap has the goal of becoming a global leader for short-term small business finance.

Spotcap leverages big data to provide loans to micro, small and medium-sized enterprises that are underserved by traditional banks. The advantages are a simple and fast application process as well as a quick credit decision.