Banjo announces extended business loans terms

Banjo Loans is introducing an extended borrowing tenor of up to five years. Changes to the Express and Excel Business loans will see the maximum increase of repayment periods from one year on loans below $250,000 and three years on loans up to $2 million.

According to Banjo’s CEO Guy Callaghan, the decision will help stimulate business survivability and stability.

“Growth initiatives for [SMEs] seem to be pretty flat at the moment compared to when the economy is thriving. While there is support out there to help businesses survive, we want to be in a position to help them thrive,” he said.

“We’ve had feedback from SMEs who have a clear vision of their future growth but haven’t been able to find flexible financial solutions that allow them to achieve their goals.

“By offering extended repayment terms, we’re empowering forward-thinking businesses to plan and invest with confidence and pursue their growth strategies. Whether it’s scaling production to win new contracts or increasing operating expenses, these longer tenor loans offer businesses the breathing room they need for success.”

Further assisting businesses, the lender recently increased loan capacity to up to $2 million per ABN and $5 million across a group of entities.

Initiatives like these are welcome amid a variety of challenges facing businesses. A recent study found that Aussie SMEs have “gone into hibernation” caused by persistent weak business conditions. Many are shying away from growth plans and loans, with interest rate worries weighing heavy.

Senior broker at Sqale Finance, Yuan Chong, is excited by the latest Banjo offerings: “Banjo extending their loan terms is an absolute game changer – and with these new five-year terms, I expect to see more SMEs using Banjo products in their overall growth plans.

“A substantial and consistent buffer positions a business for continued growth because if the tenor is too short then it’s hard for businesses to establish and nurture opportunities. More than 80 per cent of business owners we help at Sqale have annual revenue less than $3 million and are seeking fast, low-doc loans over a maximum term – and this revamp of Banjo’s product suite provides [SMEs] access to more affordable solutions in financing their growth.”

[Related: Aussie SMEs have ‘gone into hibernation’]

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

To reach Jack, email him at: This email address is being protected from spambots. You need JavaScript enabled to view it.