Fintech Moneytech has been accepted onto the government’s SME Recovery LoanScheme lender panel for the third phase of rollout.
Moneytech will be one of the fewfintechs on the panel, and their CEO Nick McGrath said that it was vital thatthe sector was represented.
Under the terms of the SMERecovery LoanScheme, any small business that was receiving the JobKeeper subsidy or wasaffected by the early 2021 floods will be able to access finance, with thegovernment backing loans up to $5m and for as long as 10years.
Moneytech participated in earlyincarnations of the SME Recovery Loan Scheme, sometimes known as SMEG, andclaims to have helped to settle more than 150 facilities during the first twophases.
Many had called for greater fintechinvolvement in the recovery after brokers cited unwillingness on the behalf ofthe bigger banks to lend to distressed businesses.
“Speed to market and loan applicationsimplicity is critical to SMEs,” he said. “Which is made easy through fintechlenders such as Moneytech who have developed automated online application anddecisioning tools. In addition to the automation advantage, fintechs are ableto be agile and nimble with new product and technology initiatives.”
Involving fintech sector in the SMERecovery Scheme is seen as vital to offering choice to small businesses andcould lead to lasting changes within the SME lending sector as a result of morebusinesses interacting with fintechs.
“Having Fintechs as part of thegovernment SME lending panel creates more tailored product options for Covidand flood impacted customers,” said McGrath. “It also forces traditionallenders to innovate products the way that a fintech does.”
“Ultimately this is great for SMEs as itpushes the lending industry forward from a technology perspective. Thegovernment guarantee provided to the fintech lenders also assists the lenderingrowing their loan portfolio, which creates a larger fintech ecosystem andmore competition for the banks.”