Elizabeth Fry
31 July 2021

Banjo Loans has launched a new bridging finance product that means small businesses can access funds while waiting for the proceeds of an asset sale or property transaction.

One of few Australian fintechs to offer an SME-specific bridging finance product, Banjo aims is to help businesses maintain their cash flow, uninterrupted.

Banjo’s Single Pay is now available to approved borrowers* for terms of two to six months and is interest expense only, with the principal paid at maturity.

The fintech confirmed there is no lengthy wait for approval. Following the application, a small business owner can expect an answer either way within 48 hours.

“We’ve seen a lot of pent-up demand to release working capital that’s tied up in a range of scenarios from asset sales to property settlements or refinancing between banks,” said Guy Callaghan, chief executive of Banjo Loans.

“SMEs are keen to avoid the stress of managing cash flow while waiting for the proceeds of the business transaction.

“Yet understandably, many can’t face jumping through the lengthy, complex hoops required by traditional lenders just to secure a short-term loan to tide them over.

“Single Pay can be turned around quickly, so businesses needn’t miss a beat.”

Callaghan cited the example of a client in a wholesale business that is trying to refinance between banks. He explained that the incumbent bank required all existing loans to be fully paid out before releasing their security interest. That meant the new bank can’t provide the new loan until this was done.

“Banjo has been able to provide the business with Single Pay to fully settle the old loans. This has then freed the business to take up its loan with the new bank,” he added.

Brokers can apply on behalf of their clients via the Banjo partner portal.

“The secured loan is available to approved businesses established for more than two years, with annual sales of over $500,000,” said Callaghan.

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