NAB extends lending features for small businesses
(31 July 2017 – Australia) National Australia Bank (NAB) announced that it will be offering a “complete suite of unsecured, self-service digital financing facilities to help small business customers grow their business faster and easier.”
The bank says it will be the first in Australia to do so.
Adding to the existing QuickBiz unsecured loan platform, NAB has added new financing options, including an overdraft facility and any one of NAB’s business credit cards.
NAB Chief Customer Officer Business and Private Banking Angela Mentis said, “We know fast and easy access to funds is critical for small businesses as they grow. While many businesses take out loans, some prefer an overdraft to best manage cash flow while others work best with business credit cards because of the payment convenience that the product provides. Supporting the sector with choice and simple and quick access to credit is a key priority for us at NAB.”
Similar to the QuickBiz loan, QuickBiz overdraft and NAB Business credit card facilities applied for online, each have an unsecured A$50,000 limit.
The bank says that once contracts are approved and signed, small business customers will receive funds in their accounts within 24 hours, while cards are sent via mail within 48 hours.
“Small business owners are critically time poor and this restricts their ability to expand and create new jobs. We want to give them time back through simple and convenient online applications, and provide choice and certainty so when they spot an opportunity to grow, they can act quickly,” Mentis said.
“We are listening to our customers and responding to their needs. We’re the only bank to offer such a unique SME credit product offering and we are proud to lead in the digital self-service space for the lifeblood of the Australian economy,” she added.
According to research from East & Partners, NAB is in danger of losing its leading market share in primary transaction banking among small to medium sized businesses. The Australian SME Transaction Bank Markets program has found that should the bank’s recent multiyear downward trends of 60-70 basis points continue, it Big 4 competitor, Commonwealth Bank, could surpass its market share within four years.
Further, NAB consistently trails another major lender, Westpac in share of mind for Internet Banking among small businesses. The bank is recalled first by just seven percent of businesses, compared to nearly one in three for Westpac.