SME lender OnDeck Australia has launched Lightning Loans, delivering finance of up to $100,000 to Australian small businesses in as quick as two hours.
Lightning Loans bring a number of innovations to the SME finance market. Requiring no security – only a personal guarantee on any amount up $250,000, Lightning Loans feature a streamlined, efficient application process that involves six months of recent bank statements to be uploaded to OnDeck via a secure online portal.
The launch of Lightning Loans has been made possible by automating a number of manual credit assessment processes without compromising on service quality or credit risk. OnDeck is now able to decision loans in less than 90 minutes and fund SMEs in as fast as two hours. These are considered to be among the fastest, most accurate lending decisions in the SME market today.
Cameron Poolman, CEO of OnDeck Australia, said, “As a fintech lender, OnDeck is continually developing technology-driven innovations that make it easier for SMEs to access timely loan finance to take advantage of commercial opportunities.
“OnDeck’s research has made it clear that the SME sector often faces lengthy delays when it comes to finance through traditional lenders, and this is hampering growth. Our significant investment in credit assessment technology and streamlining our internal processes is solving this problem, delivering funding to small businesses in a matter of hours – not days, weeks, or in some cases months.
“Our automated processes now mean that only large or complex loans require the involvement of an underwriter, allowing accelerated lending decisions to be made on the vast majority of SME loans. This also frees up our underwriters to spend more time on those larger or more complex loans that require their expertise to assess.”
Lightning access to asset write-off scheme
Lightning Loans offer a quick and easy way for SMEs to take advantage of an immediate write-off of new equipment, which the 2021/22 Federal Budget has extended to 30 June 2023. This immediate write-down now includes second-hand assets for businesses with annual turnover below $50 million. This will allow SMEs with aggregated annual turnover or total income below $5 billion to build their productive capacity for the future, while benefitting from tax savings today.
OnDeck research shows SMEs are most likely to use full expensing to invest in IT equipment, vehicles, manufacturing equipment and office furniture.
Poolman explains, “SMEs now have certainty around being able to claim the cost of new assets on tax in the current financial year.
“This is likely to drive an escalation of SME demand for commercial finance ahead of 30 June 2021, and it provides a timely opportunity for brokers to expand into SME finance.”
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