Ebury, a global corporate banking service provider for small and medium enterprises (SMEs), is entering Australia’s non-bank lending market.
They would offer trade finance for unsecured payables and receivables with line sizes of up to $5 million per client.
Ebury set up in Australia just under a year ago in Sydney, initially offering foreign exchanged related products and services.
Rick Roache, Ebury Australia managing director, said the company had now plugged Australia into its global trade finance platform and was targeting SMEs looking for capital to grow.
“We see a huge opportunity in supporting Australian SMEs, which research shows are experiencing a collective $80 billion funding gap,” Roache said.
“SMEs have faced great difficulty getting capital for their business, especially those with volatile revenue and cash flow.”
“It is not surprising then that more than 90 per cent of SMEs are considering alternative lenders who provide rapid credit approval, especially those like Ebury who do not require security for funds borrowed. The market is there for the taking.”
Roache said while there had been innovation in the non-bank lending space, a lot of that disruption had been targeted at the smaller end of the market.
“Ebury is disrupting both established banks, non-banks and so-called neo-bank lenders, who use outdated operational processes relating to factoring, invoice finance and import finance,” Roache said.
“Our clients require larger credit lines and have more complex needs. Most retail business lenders can’t or won’t meet these needs and are targeting business borrowers with smaller loan sizes, higher interest rates and longer terms.”
Ebury claimed to offer clients an easy to use online platform, complete cost transparency, no additional fees and only charged interest for credit used.
The payable finance line offered an up to 150-day repayment period and the firm’s receivable finance product a 120-day repayment period and financed 90 per cent of funds to be received.
Ebury said it could also integrate clients into its deliverable FX platform, allowing clients to collect, hedge and make payments all in one place.