New player enters the SME finance space

Rapital is the new lender on the block and has established its niche by focusing on lending to SMEs with “challenging credit situations”.

The non-bank lender is focusing on clients with issues such as low credit scores, with loans ranging between $5,000 and $250,000.

Speedy funding is another key consideration, with Rapital aiming to make decisions in as little as three hours so SMEs can access funds fast.

Speaking to Broker Daily, founder David Goldin said it’s crucial for SMEs to be able to access quick loans, especially in an uncertain market.

“With banks and even online SME lenders [and] fintechs tightening up their credit criteria, the need for a more open-minded SME lender is greater than ever,” he said.

Inspiration for entering this niche was influenced by trends witnessed wherein many SMEs struggle to receive funding from the big banks, said Goldin. This can result in businesses being forced to shut their doors.

“We see more and more SMEs that can’t not only get funding from traditional banks but online SME lenders [and] fintechs as well,” Goldin said.

According to Goldin, some of the most popular reasons for taking out loans among clients include “inventory purchases, expansion, hiring new employees and new projects to help their business ranging from technology enhancements to increasing advertising [and] marketing.”

Related: SMEs are ‘embracing’ long-term loan benefits

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.

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