(31 January 2017 – New Zealand) Online business lender Spotcap has expanded into New Zealand, while also announcing that it secured A$20 million in funding from Heartland Bank.
According to the fintech firm, it has lent A$35 million to 1000 Australian small businesses over its first 19 months of operations.
“We aim to enable SMEs to embrace growth opportunities by offering our credit lines and loans to small businesses in markets that require access to alternative funding solutions,” said Lachlan Heussler, Managing Director of Spotcap Australia and New Zealand.
“Spotcap already operates in the UK, the Netherlands, Spain and Australia, and the expansion into our fifth market is Spotcap’s opportunity to contribute to the growing New Zealand fintech landscape,” he added.
In a statement to the New Zealand stock exchange, Heartland said “the opportunity to gain exposure to online SME lending in Australia and support an innovative fintech solution that aligns with some of Heartland's key strategic priorities including expanding its digital strategy and growing its presence in Australia”.
Heartland's funding is an Australian dollar facility for Spotcap's Australian operations, which over the past 19 months have been funded by the parent company, which is headquartered in Berlin. Spotcap also has offices in Barcelona, Amsterdam and London and has raised more than A$110 million in equity and debt funding.
Speaking to Fairfax, Heusler said: “We've educated the network alternative options are available for their customers and we are getting referred business as a result of that. Brokers are a trusted counterparty and their clients are talking to them for more and more aspects and finance, including business, car and asset finance. We are coming in as a preferred lender as part of this process.”
CEO of Heartland Bank, Jeff Greenslade, said: “Our partnership with Spotcap highlights Heartland Bank’s commitment to fintech and digital banking, in line with both our own internal offerings and our investments in the sector. We are delighted to gain further exposure to online SME lending and look forward to working with Spotcap to grow its Australian operations. ”