RateSetter has announced it will now be offering a new range of peer-to-peer business loans aimed at helping small Aussie businesses thrive.
The new loans are targeted at established but growing businesses, and available for terms between six months and five years, for amounts up to $150,000.
RateSetter is the only lending platform in Australia to accept retail investors as peer-to-peer lenders, so the move into business loans is set to expand and evolve the industry. The new business loan platform will give retail investors an opportunity to help small businesses grow, while earning a stable return on their investment.
"Businesses in Australia will now have more options when it comes to financing their growth, and everyday Australian investors will now be able to contribute to that growth. Everyone's a winner,” said RateSetter CEO Daniel Foggo.
The loans, Foggo said, are designed to be a flexible, simpler alternative to traditional bank business loans. He explained that, “Businesses need funds to increase productivity, grow and create jobs, yet traditional lenders' inflexible approach leaves many businesses unable to get funding on fair terms.”
“At RateSetter we understand that businesses' financing needs change over the life of their business, so we offer small as well as larger loans at competitive rates.”
Foggo said that RateSetter’s approach to the new business loans differed from that of other FinTech lenders, in that it would take "the banks on directly in their core market of longer term secured and unsecured business loans."
Peer-to-peer lenders tend to have much lower overheads than banks, as they don’t pay dividends to shareholders, and can pass these savings on to their customers in the form of highly competitive interest rates. Foggo was confident about the positive effects of the new range of RateSetter loans for small businesses and the overall Australian economy.
Looking for a competitive loan to help grow your small business? Check out some of the most competitive rates on the market with our business loan comparison. And don’t forget to pick up some of our top tips for your business loan application.