The Credit Suisse-backed alternative lending start-up Tradeplus24 is set to launch in Australia as the company’s first international expansion out of Switzerland.
The move will be led by former NAB executive Adam Lane.
Australia was selected as the company’s first overseas market due to a “significantly underbanked niche caused by alternative lenders typically not providing loans more than $250,000 and traditional lenders struggling to structure cash flow finance smaller than $5 million.”
Tradeplus24’s variable credit lines range between $500,000 and $10 million and do not require property as collateral, which its says allows it to support more than 2 million SMEs.
The firm raised $173.6 million in debt and equity in February.
Mr Lane, Tradeplus24 Australia’s managing director, said the company had immense success in two years of operating in Switzerland, including attracting investment from Credit Suisse, SIX Group and Berliner Volsbank, but it always had global expansion in mind when it developed the business.
“Lack of competition in Australia not only reduces the need for banks and larger lenders to innovate, but also means they’re free to release capital largely under their own terms,” Mr Lane said.
“To this end, banks regularly take a charge over an entire business and also the loan against the owner’s personal property assets.
“They also struggle to lend without property as a security, which is a major factor contributing to the current shortage of capital for Australian SMEs.”
He added that the royal commission has put everyone on notice when it comes to credit, with there being less of it flowing through the economy as a whole.
“These factors combined create an urgent need for more innovative business credit solutions, which don’t require a borrower to put up property assets as collateral,” Mr Lane said.
The company is in the process of negotiating a nine-figure debt facility.
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