disrupting the sme lending market · small business lending • more than 1.5 million smes access...
TRANSCRIPT
28/11/2016
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Disrupting the SME Lending Market
Aris AllegosCEO & Co-founder, Moula
Small Business Lending
Requirements for collateral to
be held against SME loans
can result in, allocative
inefficiencies where loans are
made to businesses with the
best collateral, rather than
those that are the best
business prospects.
Reserve Bank of Australia
• Funding the growth of a SME’s
business is a challenging and lengthy
process which has been dependent on
manual underwriting
• During 2015, $14.3 and $41.8 billion of
new credit was approved with loan
principal less than $100,000 and
$500,000, respectively.
BUSINESS LENDING, 2015
1. Financial System Inquiry Interim Report, July 2014
2. Reserve Bank of Australia, “Bank Lending to Business – New Credit Approvals by Size and by Purpose – D7.4”, Mar 2016
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Small Business Lending
• More than 1.5 million SMEs access business lending, with a large
proportion relying of borrowing less than $100,000
• Both Australia and New Zealand lead the world with the adoption of cloud
accounting, exceeding 40% penetration
• The growth in cloud based accounting solutions has enabled Moula to
develop an innovative and unique underwriting model
Discussion Sources
Accounting DataBest measure of serviceability,
indebtedness and assurance
Transaction DataSecondary measure of serviceability,
limited relevance to indebtedness
Bureau DataLimited relevance to business risk and
poor gauge of creditworthiness
Business DataRisk assessment based on firm size, age,
industry, geography, etc
Other (e.g. Social)Limited relevance, however, used
holistically can be a measure of risk
More
Pre
dic
tive
Less P
redic
tive
Source: HBS Working Paper Series, “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game”, Jul
2014
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Our Background
Founded July 2013
Strategic Partners
Headquarters Melbourne, Australia
Technology Proprietary, wholly owned and developed
Funding Institutional
Innovative Proprietary platform, built to accommodate accounting data sources
Responsible Driven by ethical lending standards: transparent pricing with no hidden fees
Experienced Founding team with extensive expertise in banking, accounting and technology
VALUES
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Application Process
Business &
Personal
Information
STEP
ONE
Tell Us Where to
Deposit The Funds
STEP
THREE
Link Your Data
STEP
TWO
Moula will push
journal entries to the
general ledger,
accounting for the life
of the loan
Products
Product Term Loan (Unsecured) Line of Credit (Unsecured)
Size $5,000 - $250,000 $5,000 - $250,000
Term 6 – 18 months 6 – 12 months
Pricing (Per Fortnight) 0.75% - 1.50% 0.75% - 1.00%
Payment Fortnightly Fortnightly
Availability Repeat at ~50% amortised Draw on-demand
Minimum Lending Criteria
• 12 Months | The business must have been in operation for 12 months (and have been operated by the applicant)
• $5,000 Per Month | The business must demonstrate average monthly revenue of over $5,000 ($60,000 per annum)
• Fair or better | The business, and the individual director, must have a fair or better credit history
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Design
• Intuitive design for
easy-of-use
• Detailed customer
dashboard
• Partner portal for loan
referral
• Ongoing customer
management
Our Customers
I just went online and applied –
they had a really simple three
step process. About ten minutes
after I made the application, I
got a phone call from them saying
the loan was approved …
Laurel
Get Digital Flow
I spoke to our accountant and she
introduced me to Moula … they
assisted me and within 24 hours
we had a cash injection. It’s
good to know that when we get a
good business opportunity, we can
get support.
Stephen
Scotty’s Wholesale Meats
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Our PartnersMy client had some cash flow issues
given their obligation to pay
employees prior to receiving
payments from their debtors.
I initially called Moula, and
subsequently signed up to the
Partner Program and was able to
refer my client in a matter of
minutes. The team at Moula took it
from there…
Kerry Hargreaves
The Book Balancer
Get started by
registering online
as a partner
Register
Earn a
commission on
all funded loans
referred
Reward
Refer clients and
track the process
of their loan
online
Refer
Get in touch
1 300 88 52 36
moula.com.au/partners
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