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Industry veterans Greg Charlwood and Greg Woszczalski have announced the launch of a new lender that aims to fill a gap in the SME finance market.
The new venture, Australian Invoice Finance (AIF), is looking to spark competition in Australia’s cash flow finance sector.
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AIF managing director Greg Charlwood previously worked at Scottish Pacific as head of debt finance and, together with Greg Woszczalski, founded Bibby Financial Services Australia, 180 Group and ORIX Cash Flow Finance.
Mr Charlwood believes that a lack of competition in the sector has created inefficiencies and reduced service quality.
“There is significant unmet demand in Australia, and we believe AIF is well suited to successfully address the cash flow constraints of Australian small businesses,” the industry veteran said.
“We spotted an opportunity to challenge the status quo and offer an alternative deal to Australian SMEs and, with our experienced backers, we have run with it.
“We see a gap between small business financing needs and the availability of capital from the current incumbents.”
Mr Charlwood does not believe that SMEs are supported well enough when faced with difficulty and noted that AIF will “support them in tough times” and service clients that are restructuring or “turning their business around”.
The venture has received backing from major investors, including ASX-listed diversified investment company CVC Limited.
With research from Dun & Bradstreet reporting that only 12 per cent of ASX-listed companies pay on time and 9.3 per cent of businesses take more than 60 days to make payments, AIF noted that young at-risk companies are in need of quick finance options.
Since its launch, the company has acquired the businesses of clients from across the country. It will finance up to 85 per cent of unpaid invoices without demanding property as a security while also offering 24-hour loan approvals for clients.
“We helped pioneer the industry here and have deep experience working in cash flow finance companies at a range of growth stages,” Mr Charlwood said.
