Al­ter­na­tive lend­ing to be­come main­stream

Business First - - NEWS -

Aus­tralia’s al­ter­na­tive lend­ing sec­tor is set to go main­stream as early as 2020, ac­cord­ing to the US’s lead­ing on­line small busi­ness lender OnDeck, Inc.

OnDeck CEO Noah Bres­low said Aus­tralia’s rapidly evolv­ing al­ter­na­tive fi­nance mar­ket, had the po­ten­tial to out­pace the US mar­ket in its shift to­wards main­stream. Ac­cord­ing to Bres­low, Aus­tralian mar­ket driv­ers fu­elling the speed of this shift in­clude the height­ened chal­lenge SMEs face in ac­cess­ing fund­ing through tra­di­tional sources, faster tech­nol­ogy adop­tion, greater rel­a­tive in­vest­ment and the more con­cen­trated na­ture of the mar­ket.

Re­search on the sec­tor shows new ap­proaches to lend­ing could tap into un­met de­mand for Aus­tralian SME fi­nance worth up to AUD $70 bil­lion. Re­search also es­ti­mates the to­tal ad­dress­able mar­ket for new SME lenders is likely to grow to AUD $95 bil­lion by 2020.

“The small busi­ness credit prob­lem is global in na­ture. Small busi­nesses need work­ing cap­i­tal to buy in­ven­tory, or ex­pand, or hire more staff, yet tra­di­tional lenders are not equipped to meet their fi­nanc­ing needs,” Mr Bres­low said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.