(27 June 2019 – Australia) Global non-bank lender Ebury has entered the Australian SME lending market as it seeks to compete with established bank and non-bank incumbents.
The foreign exchange (FX) and trade finance provider announced it has expanded its presence in the Australian market by offering trade finance for unsecured payables and receivables and targeting credit lines of up to $5 million per business.
The fast growing fintech employs 850 people in 22 offices globally. In Australia where Ebury has offered FX services for the past year before adding trade financing in June 2019, it plans to double staff numbers to 50 by the end of 2019. Ebury promotes its online platform, cost transparency and pricing policy as highly competitive and also plans to provide trade finance customers with access to its FX platform, which would enable cross-border business to collect, hedge and complete transactions in one place.
Trade finance generally provides loan funds to companies that are importing or exporting products to manage cash flows. Ebury charges between 0.4 to 1.2 percent a month in interest on the amount of finance drawn down with penalty interest if the loan isn’t repaid.
Ebury is seeking to disrupt established banks, non-banks and online lenders, many with costly legacy systems in place. Ebury is the latest fintech to disrupt the Australian SME credit market alongside notable SME lenders in Judo Bank, Volt Bank, Xinja Bank, 86 400, OnDeck, Prospa, Moula and Lumi.
“We see a huge opportunity in supporting Australian SMEs, which research shows are experiencing a collective $80 billion funding gap. 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 percent 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” said Rick Roache, Ebury Australia Managing Director.
Mr Roache won’t put a market share target on Ebury’s Australian trade finance plans but thinks they will be attractive because they aren’t secured over property or title over the goods and don’t charge fees.