SME lender Avenue Bank granted restricted banking licence

Small business shop front.

Avenue Bank, a digital business bank with plans to shake up the SME lending sector, has been granted a restricted banking licence by the Australian Prudential Regulation Authority (APRA).

Founded by entrepreneurs Colin Porter and Dale Hurley, the Sydney-based bank will cater to small and medium-sized businesses looking for “next-generation cash flow solutions.”

Chief executive George Confos said the banking licence, while provisional, marks an important milestone for the business.

“We’re bringing to market a 21st century business bank for 21st century SMEs. We’re looking at the ways we can innovate products for this underserviced market,” he said.

“With our offering and our technology, we can work closely with our customers to help map their future cash flow. We aim to be a cash flow partner and you need to be a bank to do that.”

With many SMEs still reeling from the impacts of the COVID-19 pandemic, Avenue Bank hopes to help Australian businesses get the funding they need without resorting to using their home as collateral.

“We are a smart, digital bank that doesn’t rely on bricks-and-mortar security. We are building an automated credit process which focuses on both financial and non-financial aspects of a business,” Confos said.

RELATED: SME Recovery Loan Scheme expanded to help beat lockdown slump

Under the restricted ADI framework, Avenue Bank will be able to conduct limited banking business on the way towards achieving its full ADI licence.

This pathway gives new entrants into the banking industry a maximum two year period to develop their resources and capabilities. At the same time it must satisfy strict prudential requirements laid out by APRA.

If an applicant is unable to manage its risks effectively, it will have its licence revoked.

Avenue Bank has already added a number of industry veterans to its team, including Steve Kinsella, who has occupied leadership positions at both Bankwest and CBA.

It also recently closed a $37 million Series B funding round, counting Melbourne-based lender Liberty Financial Group among its backers.

Liberty chief executive James Boyle said the two companies shared a common goal in catering to a market looking for alternatives to conventional finance companies.

“We see great opportunity for Avenue Bank in an area ripe for innovation. It’s also immediately adjacent to the SME sector that the Liberty group has provided products and services to for much of the last 20 years,” he said.

To compare financing solutions currently available on the market, head over to our business loans comparison page, or browse the selection below.

Business loan comparisons on Mozo - rates updated daily

Search promoted business loans below or do a full Mozo database search. Advertiser disclosure.

Refine the list of business loans

Let’s help find you a great business loan...
  • Line of Credit

    Zip Business Loans online application process can be completed in as little as five minutes, and once approved you can access the funds within 24 hours. A line of credit up to $500k that converts into a loan when you draw down.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    2% to 3%
    Instantly, once approved
    Go to site
    Details
  • Equipment Loan

    Finstead Equipment Loan with market leading rates and one dedicated specialist from start to finish. Tailored finance solutions with ongoing finance support.

    Interest Rate
    Upfront Fee
    Funding speed
    from 2.85% p.a.
    On Settlement
    48 Hours
    Go to site
    Details
  • Asset Finance

    Buy new or used equipment including vehicles for your business with thornmoney’s asset finance. Get a loan from $10,000 to $1,000,000. Adjust what you pay with flexible terms of up to 60 months. Limited time Mozo Referral Offer.

    Interest Rate
    Upfront Fee
    Funding speed
    On application
    $165.00* (Special Offer)
    Varies
    Go to site
    Details
  • Invoice Finance

    Get your customer invoices paid early, without waiting up to 90 days for payment. Apply online in 10 minutes and select your local or overseas invoices to fund. Flexible funding with no lock-in contract.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    $0.00
    Same Day
    Go to site
    Details
  • Buy Now Pay Later for Business

    With UnLock you don’t need the money to hand to buy something your business needs – they pay for it so you can get on with the job, then you pay them back later. With UnLock, you can pay business invoices and make business-related purchases online and in-store with your UnLock Mastercard. Participating lender in the Government SME Loan Recovery Scheme.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates starting at 1.5% of invoice value.
    0.0
    Varies
    Go to site
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.