Moneytech launches new SME lending product

Non-bank lender Moneytech has launched a new product that combines its Business Loan and Line of Credit offerings to cater to the challenges that small- to medium-sized enterprises (SMEs) are facing.

The lender said that the offering is a multi-product working capital solution that will support SMEs through rising inflation, increased interest rates, the Australian Tax Office’s (ATO) recent debt recollection, and cash flow strain.

The product combines the lender’s Business Loan and Line of Credit offerings as a singular product under one application with loan limits of $25,000–$500,000. According to Moneytech, the offering will require the applicant to submit only one application.

Moneytech said that the product can be used for business acquisition, refinancing of existing debt, buyout of directors or investors, or to clear out a business’s ATO debt.

Nick McGrath, chief executive at Moneytech, said: “After four years of COVID-19 pandemic relief from the ATO, small businesses have accumulated over $33 billion in tax arrears which is now being clawed back by the ATO. This also coincides with an extremely tough economic environment due to high interest rates and inflation.”

Moneytech claimed that its new product is a “market-first”, with McGrath stating: “The Moneytech team [has] designed a market first working capital solution which combines both traditional Business Loan and Line of Credit as a single product solution under one application, one set of documents, and all within 24 hours.”

The CEO continued that the product would allow SMEs to receive a lump sum payment and a revolving line of credit for working capital needs, making it available to cover day-to-day operational expenses.

Moneytech has updated its proprietary tech platform to include a single workflow that combines a Line of Credit and Business Loan application. The update allows multiple products to have one approval, one application, and one set of DocuSign-generated documents.

Speaking on the tech update, McGrath said: “Moneytech is committed to being a reliable partner for all finance brokers. We have pioneered a groundbreaking application workflow that is a first in the Australian market, enabling multi-product origination and approval all within a single application.

“While most non-bank competitors are offering one or two products, we are now offering five, which introduces complexity but also provides brokers with a competitive advantage when selling our products.”

[Related: ORDE Financial launches new product line]