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Expanding finance beyond equipment: Boosting service businesses

Moneytech, a prominent non-bank business lender, is embarking on a mission to reshape perceptions surrounding financial products and their applications for Australian SMEs seeking to enhance and expand their enterprises.

While many business owners are familiar with finance options for acquiring equipment and essential tools, Moneytech’s recent data indicates that there is a lack of awareness regarding the broader potential of finance in aiding businesses, particularly those in the service sector.

Mark Cameron, Chief Business Officer at Moneytech, explains that the range of finance solutions available to Australian SMEs extends far beyond equipment procurement. These financial instruments can play a pivotal role in addressing various business challenges such as bolstering debtor ledgers, mitigating delayed invoice payments, managing cash flow, facilitating international trade ventures, securing stock and raw materials, ensuring cyber-security, and funding growth initiatives.

The Australian Bureau of Statistics reported a 3.4% increase in business investment during the March quarter, with a predominant focus on machinery and equipment purchases. Mark underscores that while this data underscores business confidence, it also underscores the prevalent association between finance and equipment acquisition. However, he emphasizes that business finance can have a far more extensive impact, advising SMEs to explore strategic utilization of finance to capitalize on opportunities that can drive their businesses forward.

In the face of current economic challenges, particularly inflationary pressures, finance emerges as a valuable tool to assist SMEs. With the ability to secure raw materials and stabilize costs, businesses can better navigate the turbulent economic landscape. Mark points out that SMEs, grappling with supply chain intricacies, are particularly interested in using finance to bolster their logistics and material management. He notes the significance of finance solutions tailored to supply chain dynamics, emphasizing the need for flexibility and sustained support to align with evolving business requirements.

Illustrating the practicality of these concepts is the AminoZ case study. Beginning as a supplier of health supplements to local fitness clients in 2006, AminoZ evolved into a thriving retail operation with a substantial online customer base. The company, founded by Jay Bonaretti, ventured into manufacturing its own AminoZ-branded supplements in 2019. However, as the COVID-19 pandemic hit, global supply chain disruptions posed significant challenges. The solution came in the form of a finance solution from Moneytech, which enabled AminoZ to import bulk ingredients. This strategic financing not only saved the company substantial funds but also ensured that the products remained in stock, thereby driving substantial business growth.

In essence, Moneytech is at the forefront of changing how SMEs perceive and leverage financial products. By recognizing the broader potential of finance in addressing multifaceted challenges and seizing opportunities, Australian businesses can position themselves for sustained growth and success.

Shifting away from traditional bank borrowing

In an evolving landscape, SMEs now have an expanding array of financial avenues beyond the conventional routes. One significant trend is the increasing inclination to step away from the traditional methods of bank borrowing or home mortgage refinancing to meet business funding requirements. This shift is gaining momentum as business owners recognize the diverse range of finance products available to them.

It’s crucial for SME business proprietors to be well-informed regarding the distinctions between various business lending options, especially when personal property might be required as collateral for loans. Mark, the voice of experience, emphasizes the necessity for diligent research, particularly when property is involved.

Interestingly, the rapid embrace of non-bank lending solutions is attributed to their inherent advantages. The ease, speed, and flexibility offered by non-bank lenders make them an attractive first-choice option for numerous SMEs seeking financing. Unlike traditional banks, non-bank lenders often boast robust technology infrastructures that streamline the application and assessment process, delivering simplicity and convenience to applicants.

Central to this efficiency is the credit assessment engine employed by non-bank lenders. This cutting-edge technology enables the swift review of pertinent data, culminating in a response within minutes. Moreover, through collaboration with dedicated lending experts, businesses can swiftly receive customized solutions tailored to their distinct needs. This personalized approach not only expedites the process but ensures that the financial solution aligns seamlessly with the business’s requirements.

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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