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A new private lender billing itself as ‘Australia’s first and only pawn broker for business’ has officially launched following a broker pilot.
A new private lender, Asset Based Lending (ABL), has officially launched into market providing commercial brokers with a new funding model aimed to provide urgent relief for struggling small and medium-sized enterprises (SMEs).
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ABL, headed up by industry veteran Steven Heavey (CEO and managing director), enables businesses to leverage various assets – such as cars, recreational vehicles or boats, inventory, and even personal luxury items – to unlock capital for their business within 24 hours.
The lender aims to help commercial brokers support clients who may be facing financial distress or have poor credit scores, by enabling them to borrow funds for their business against existing assets that they own outright.
It offers financing up to 70 per cent of an asset’s value, ranging from $20,000–$1 million, with terms of one to three months, extendable to six months.
Once the loan is repaid, the asset is released. If the loan is not repaid, the asset is auctioned (with ABL saying that any surplus would be returned to the client).
Heavey – who has worked in the third-party lending space for the past 30 years (including in senior management positions at Mortgage Choice (1994–2002), ANZ (2002–07), St.George (2007–14), and Suncorp Bank (2014–19) – said that ABL “provides immediate liquidity” (typically within 24 hours), in a bid to help businesses avoid insolvency, particularly citing those needing to pay ATO debt quickly.
He said: “In the last six months, we’ve piloted the model in Australia. I’ve spoken with over 1,500 brokers and accountants, and none had a solution for the growing problem we’re solving. This is your ‘get out of jail free’ card. It’s not the end-all solution, but it provides breathing room when your client needs time, helping businesses stay afloat while they seek sustainable solutions.”
Noting the launch of the new lender, the CEO of the Commercial & Asset Finance Brokers Association of Australia (CAFBA), David Bushby, said: “Brokers are under more pressure than ever to find flexible finance solutions for business, especially for businesses facing ATO enforcement.
“It is important that brokers have a range of options so they can find a solution that is fit for purpose, and which best meets clients’ needs.
“The addition of this asset-based lending model is welcome, giving brokers an additional option to support their clients, where appropriate.”
[Related: CAFBA launches commercial finance education platform]
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