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To provide greater support for the lender’s SME clients, Banjo Loans has increased its loan size on some business products.
Non-bank lender Banjo Loans has announced that it has increased the loan size for its Business Loan products to $2 million per Australian Business Number (ABN).
For a group of ABNs, Banjo Loans has increased the maximum loan size to $5 million.
The increased loan size is available on the lender’s Working Capital, Working Capital Flexi, Working Capital Bridge, and Asset and Equipment Finance loans.
Banjo Loans’ express products (Working Capital Express and Asset and Equipment Finance Express) do not offer the increased loan size.
The non-bank lender’s CEO Guy Callaghan revealed on The Adviser’s In Focus podcast that Banjo Loans is also looking to increase the tenure of the loans it is putting out to market.
By doing so, the CEO explained that it would reduce the speed of repayments and would have a less significant impact on SME cash flow.
Currently, the lender offers weekly, fortnightly, and monthly repayment frequency options on its Business Loan product to “accommodate business cadences”.
Banjo Loans said that the increase in its loan sizes would be beneficial to brokers and customers alike. The lender said: “This means, as a broker, you get to access even more finance for your clients – when they need it – to move their business forward and reach the next chapter in their business development.
“Whether that’s stocking up on inventory, scaling production to win new contracts, or whatever works in their business world.”
The announcement follows research from the Commonwealth Bank of Australia (CBA) that found that electronic vehicle financing by SMEs had increased by 346 per cent in the nine-month period to March 2024.
A survey from SME lender Shift also revealed that 45 per cent of commercial brokers believe that fund asset purchases would be their biggest opportunity this year.
Banjo said on the benefits of the flexibility of its increased loan size: “Banjo’s terms can provide the flexibility and breathing room necessary for your client to integrate their growth plans seamlessly into their operations and realise their potential.
“With timely access to a credit decision-maker, Banjo’s personalised support and commitment to building strong relationships ensures a smooth and efficient lending experience for your client, reinforcing our dedication to SMEs with tailored financial solutions to drive success.”
[Related: In Focus: Steering SMEs through choppy waters]
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