SME lender reinstates equipment finance product offering

SME lender Earlypay has brought back its equipment finance product line, 14 months after withdrawing it from the market.

The business finance lender pulled out of the equipment finance market in July 2022 after coming up against funding constraints following a period of growth in its invoice finance book.

According to the SME lender, given the economic uncertainty at the time, it decided to stop providing stand-alone equipment finance and focus solely on its invoice finance clients.

However, it noted that its equipment finance portfolio had continued to perform well, “despite challenging conditions for [its] clients”.

As such, it undertook a soft re-launch of stand-alone equipment finance in July 2023 through “a limited range of channels” and is now formally relaunching the offering with an updated product and revised rates.

It is now financing up to $1.5 million per client over terms of up to five years and is funding primary, secondary and tertiary assets. Its rates start from 11.75 per cent* per annum.

“We have been rationalising and enhancing our funding structures and are well positioned for growth,” the lender told The Adviser.

Steve Morrison, senior manager of Earlypay Equipment Finance, stated: “Despite our withdrawal from stand-alone equipment finance in the latter half of 2022, our equipment finance capabilities remain strong.

“We have an experienced team, engaged sales forces and a supportive broker network. We are well positioned for growth in this asset class.”

The SME lender has been growing its team and presence recently, bringing on four managers in July as it looks to build out its offerings and its networks, and welcoming Tony Harmey as business development manager earlier this year.

Speaking to The Adviser for the In Focus podcast last month, Earlypay’s national head of growth, Lee Trego, highlighted that the lender was seeing incredibly high levels of inquiry from SMEs at the moment, both through web-based channels and broker partners.

“That shows that business owners are feeling the impacts of the economy, whether it’s just hearsay and stress of the press saying that ‘we’re about to hit recession’ or whether it’s truly impacting their business. Businesses are taking action to explore their options, but they’re certainly in need of an adviser to navigate the unknowns and find the best solution,” he said.

You can find out more about SME finance trends being seen at the SME lender, and learn more about the ins and outs of invoice finance, in the podcast episode below:

*The starting interest rate was amended on 27 September to reflect the new rate of 11.75 per cent.

[Related: In Focus: The ins and outs of invoice finance]

Written by Annie Kane

Last Updated: 27 September 2023

Published: 27 September 2023