Westpac: Change required to address emerging business funding needs
Emerging Australian businesses and industries are being held back when it comes securing the business funding they need to grow.
At least, that’s according to the latest Smart Industry Report on Emerging Industries from Westpac.
The report revealed that businesses in a number of emerging fields, including those ‘driving’ the move towards a digital and low carbon Australian economy, often lack the financial support provided to similar innovators in other countries.
Westpac highlighted the maturity of the capital market in Australia, as well as issues with regulation and government as being the major roadblocks startups and entrepreneurs face when accessing finance.
RELATED: Small business loans made simpler in 2019 as online lenders adopt new code
According to Reeta Dhar, Westpac’s National Head of Emerging Industries, the bank is determined to help plug the funding gap though.
“Westpac wants to back the businesses that are backing Australia, which is why we are the first bank in Australia to set up a network of specialist bankers dedicated to emerging industries, and a risk appetite to provide debt funding to scale-up businesses,” she said in a statement last week.
“We are committed to understanding the strategies, technologies and business models of these transformative companies and are unlocking a range of services that allow them to extend their operating runway, including access to debt.”
Could government small business strategy help Australian innovators?
Announced in November last year, the Federal Government’s two-pronged SME funding strategy could go some way to assisting small and emerging businesses with securing better value loans.
The first prong - a $2 billion Australian Small Business Securitisation Fund - aims to provide small banks and online lenders with the ability to significantly boost their funding levels, which would then be passed on to small businesses by way of more competitive business loans.
Secondly, the Government also floated plans to establish an Australia Small Business Growth Fund backed by banks and superannuation funds.
Inspired by the UK’s own Business Growth Fund, the Australian fund would provide longer term equity funding to small businesses - something many businesses find difficult to acquire without taking on debt.
RELATED: $2 billion small business boost: Coalition announces two-pronged funding strategy
While neither strategy currently has a concrete implementation date, the Department of the Treasury states that legislation to introduce the Australian Small Business Securitisation Fund is likely to be introduced in the earlier stages of 2019.
Until then, if you’re looking for a funding solution for your own business why not start by checking out some of the great business loan offers below. Or if you’d like to see even more, head over to Mozo’s Business Loans Comparison Hub to compare a range of offers from both banks and online lenders.
Compare business Loans 2019
Unsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
Interest Rate
Upfront Fee
Funding speed
from 9%-Within same dayUnsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
- Interest Rate
- from 9%
- Upfront Fee
- -
- Ongoing Fees
- 2.5% establishment fee of the disbursed amount.
- Late payment fee
- $50.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 4 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $60,000
- Application speed
- within 24 hours
- Approval speed
- 2 hours
- Funding speed
- Within same day
- Extra repayments allowed
- yes
- Redraw allowed
- yes
- Other benefits
- Early payout options and early repayment discounts are available. Principal-only payout available after 6 months.
- Other restrictions
- Loans above $300,000 must be secured by property.
Prospa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Interest Rate
Upfront Fee
Funding speed
Interest rates vary based on risk.3.5%from 24 hoursProspa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
- Interest Rate
- Interest rates vary based on risk.
- Upfront Fee
- 3.5%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $150,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 3 years
- Minimum annual turnover
- $1,000,000
- Application speed
- 10 Minutes
- Approval speed
- Same-day approval
- Funding speed
- from 24 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
Unsecured Business Loan
Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.
Interest Rate
Upfront Fee
Funding speed
On Application3%, starting at $399from 3 hoursUnsecured Business Loan
Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.
- Interest Rate
- On Application
- Upfront Fee
- 3%, starting at $399
- Ongoing Fees
- no
- Late payment fee
- $50.00
- Transaction fee
- -
- Early repayment penalty
- no
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $5,000,000
- Minimum loan term
- 3 months
- Maximum loan term
- 1 year
- Repayment frequency
- Weekly, flexible
- Repayment types
- Principal & Interest
- Minimum trading period
- 4 months
- Minimum annual turnover
- $144,000
- Application speed
- 10 Minutes
- Approval speed
- within 1 hour
- Funding speed
- from 3 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- Daily repayments available.
- Other restrictions
- Fast Business Loans for amounts up to $500,000 are funded in 3 hours, Small Business Loans can take 24 hours.
Fixed Rate Unsecured Business Loan
Interest Rate
Upfront Fee
Funding speed
-On applicationVariesFixed Rate Unsecured Business Loan
- Interest Rate
- -
- Upfront Fee
- On application
- Ongoing Fees
- $0
- Late payment fee
- $0.00
- Transaction fee
- $10 ($50 for staff assisted withdrawals)
- Early repayment penalty
- not disclosed
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $250,000
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- -
- Repayment types
- Principal & Interest
- Minimum trading period
- Varies
- Minimum annual turnover
- Varies
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- yes
- Redraw allowed
- yes
- Other benefits
- LVRs available of up to 100% residential property or 80% owner-occupied non-specialised commercial property for secured loans up to $3 million.
- Other restrictions
- Eligible Westpac customers only. Annual turnover less than $50m.
Read reviews and learn more about Westpac business loans
Business Overdraft
Interest Rate
Upfront Fee
Funding speed
10.47% p.a. variableNegotiableVariesBusiness Overdraft
- Interest Rate
- 10.47% p.a. variable
- Upfront Fee
- Negotiable
- Ongoing Fees
- Fees and charges apply
- Late payment fee
- $0.00
- Transaction fee
- not disclosed
- Early repayment penalty
- 0
- Other fees
- -
- Loan type
- Overdraft
- Security type
- not disclosed
- Minimum loan amount
- $20,000
- Maximum loan amount
- -
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- n/a
- Repayment types
- n/a
- Minimum trading period
- Varies
- Minimum annual turnover
- $75,000
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- n/a
- Redraw allowed
- n/a
- Other benefits
- -
- Other restrictions
- Must link with a NAB business transaction account and is repayable on demand
Read reviews and learn more about NAB business loans
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