Navigating the small business lending market.

There are a lot of options when it comes to online business lending and there is an emerging trend of “fast and easy business loans” to be found.


Some of these options are genuinely very good solutions that bridge the gap between funding a business needs and what a traditional business bank offering will provide.


Others are not so good, taking security you didn’t know you were providing, charging fees, even if you don’t proceed, or, are just very expensive options for what you may need. 


The problem is, without industry knowledge and experience how do you know which lender and option will suit you best and how to avoid the sharks?


The answer is work with a professional broker and don’t go it alone.


Recently we have assisted a number of businesses with small business lending where their home bank have not been able to or they have required information the client just cant provide at this time.

One such example is a café business, trading less than 2 years traditional banks were shying away from providing working capital.


Here we introduced an online offering that provides a small “trade finance” line of credit. Allowing them to select and pay any invoice in the business that is due but spread the repayment of that over a tome period that matches their cashflow.


In this particular case we obtained a $50,000 limit on their facility and they use it exclusively to fund their major supplier’s bill. In this case they were able to go to the supplier, request how much the discount be for the payment arrangement to convert from 45 days payment term to cash on delivery.   The discount achieved was generous at 10%.


When the order is placed they now pay cash on delivery and fund the payment via their new trade facility.  They elect to repay the facility over 2 months costing them 8% in interest on a reducing balance (as the facility breaks the payment up in to weekly instalments). The actual interest cost was closer to 6% of the invoice amount.  So in effect they ended up saving close to 4% on their supplier costs by using the online trade facility we introduced .


Being a “Fintech” online offering they required very little information to be approved (ABN, credit score and last 3 moths trading account statements) and they now have a facility that works for their business without the need to provide additional security to a bank.


As mentioned before there are a number of these funders in the market, some good and some that should be avoided. At Provident we don’t partner with every small business lender in the market rather we partner with a handful of market leaders. 


Lenders we have tried, tested and have good local working relationships with.


What’s more, if you inquire about an online business loan through Provident, you don’t just get the loan, you get a real person a local Lending Consultant looking out for you at no extra cost.


We will make contact with you, review your needs and provide you with the best solution based on your circumstance and our consultant's extensive knowledge and experience in business lending.  


The process is just as fast & simple, but you can be rest assured you have a professional, local team with you every step of the way.

Trent Carter
Provident Lending & Business Solutions


For more information see 
or get in touch via  08 6201 0143

Back to News