(26 April 2021 – Australia) Grow Finance has reported a strong bounce back in business confidence and investment from the COVID lockdowns and restrictions, with its small to medium size enterprise (SME) lending activity doubling in Q1 2021 from the prior quarter.
Grow Finance has been operating since 2015, issuing over A$700 million in loans to more than 12,000 customers. The group asserts that it is the only non-bank lender to provide asset finance, business loans, invoice finance, trade finance and insurance premium finance. The firm extended customers a record A$22 million in credit facilities last month with A$13.5 million alone in asset and equipment finance as conditions improved and businesses sought out new opportunities.
Grow acquired Australian Invoice Finance in 2020 and Eclipx’s commercial equipment finance book for A$14.6 million in 2019. The group’s key point of difference is that in most circumstances credit approvals are granted in under one business day. Grow Finance is another prominent rival to the incumbent Big Four, making waves in the small business lending market alongside established brands such as Scotpac, Moula, Prospa, TIM Finance and challenger banks including Judo Bank and Up.
The incumbent Big Four majors are by no means taking the challenge lying down without a fight, as CBA and NAB flex their SME balance sheets in a contest for small business banking supremacy.
“Demand is strong, and we expect ongoing growth. The SME lending boom that began in the bush is pushing into metro areas. Speed of delivery is crucial. When there are three people climbing over each other to buy a used courier van, whoever gets approval first will snap up that vehicle” stated Grow Finance Executive Director, Greg Woszczalski.
“As the supply chain gets back on track and business gets back on track and with GDP normalising the world is turning again and you can see it. Distribution in the city is the most obvious part that is growing. We are seeing great activity with industries that have pivoted through COVID, businesses who are delivering to the major supermarkets like Woolies, Coles and Aldi. Those businesses in distribution, trucking and civil works” Mr Woszczalski added.