Ever since the coronavirus pandemic has taken centre stage around the globe – sparking massive sell-offs across the board, the immediate brunt is likely to be faced by the small businesses across several countries.

In an effort to stabilise the small business environment, the Prime Minister of Australia has announced numerous measures that would include an extension of the threshold for instant asset write-off to $150k, substantially higher than the current $30k threshold. The extension will be for eligible businesses having turnover of up to $500 million, up from the current $50 million turnover limit ($500 million limit is until 30 June 2020).

The Federal Government would allow deducting 50% of the cost of an eligible asset on installation at existing depreciation rates. This incentive scheme would be for a 15-months period for businesses having a turnover of less than $500 million.

Scott Morrison also announced that the government would pay $25k to businesses with less than $50 million in turnover and staff. Besides, the government would be providing a 50% wage subsidy to businesses that employ apprentices or trainees. The wage subsidy would be available for up to nine months in 2020 starting 01 January 2020.

More importantly, the Federal Government would be introducing bills in the parliament starting from 23 March 2020, which would pave the way for fiscal stimulus for the small business community.

Also Read: Guide to Business Lending: A Look at Key Lenders in Australia

Five neo business lenders in Australia

Moula

Moula was co-founded by Aris Allegos, Andrew Watt and Piers Moller. Mr Allegos has spent a significant portion of his professional career in the banking industry, Mr Watt has a background in credit risk management, and Mr Moller has extensive experience in developing in-house applications for financial services businesses, especially for banks.

Moula’s website highlights that the small business lender is backed by Australia’s largest non-bank lender – Liberty Financial. The lender has partnerships with Officeworks and Xero. It’s business loan product lends $50k to half-a-million dollars, with a tenure ranging from 6 months to 36 months.

The lender’s product Moula Pay helps fund business purchases at participating merchants through a credit limit of $250k, which can be repaid over 12 months with no interest and repayments in the first three months.

GetCapital

GetCapital has been recognised on numerous start-up platforms, including three consecutive Deloitte Technology Fast 50, four consecutive Deloitte Technology Fast 100, AFR Fast 100 list 2018, and LinkedIn Top Startups 2019, among others.

The Company provides business loans, which include working capital loans, business overdraft, term loan, import line of credit, shift payments. It also provides asset finance, which includes general equipment finance, vehicle finance and fitout finance.

GetCapital’s working capital loans allow an individual to borrow up to $300k with a tenure of up to 2 years, weekly repayments, no annual and early repayment fees, though establishment fee is applicable. The lender’s term loan products provide loans of up to $750k with tenure of up to 3 years having weekly and monthly repayment options.

Also Read: Applying for Business Loans & Types of Business Loans

Business Fuel

Business Fuel’s lending team has broad experience in business finance. The lender offers customised products based on customer requirements. It provides funding for business expansion, inventory management, as well as working capital management.

Business Fuel provides business loans ranging from $10k to $200k to small and medium enterprises across a wide range of industries. The lender offers funding to businesses in the retail, food & beverage, consulting & professional services, mining, hospitality, tourism & events, health & beauty, finance & insurance, manufacturing, wholesale, technology, education, engineering and health & medical.

Business Fuel’s cash flow finance product lends between $10k to $200k, and its equipment finance products lend in a similar range. Post-approval of the application, the funds are disbursed within 24 hours.

Classic Funding Group

Classic Funding Group is a part of the ASX-listed non-bank finance company – CML Group Limited (ASX:CGR). The business has been providing equipment financing and working capital finance solutions for over 25 years.

Classic specialises in equipment financing and invoice discounting to a range of industries, and it provides vehicle finance, aviation finance, trade finance as well. Among its lending verticals, aviation finance is for the businesses that intend to buy a helicopter, winged aircraft, equipment, spare engine etc. In Aviation finance, the lender provides loans of up to $1 million at flexible terms.

It allows customers to make additional payments, and early contract payments are also available, but some additional fee is charged in this course. Early termination fees are dependent on the type of loan.

Marketlend

Marketlend was founded by Mr Leo Tyndall. He was the head of capital markets of Asia Pacific with UniCredit. Before starting Marketlend, Mr Tyndall was engaged in providing financing to public companies for receivables.

Marketlend offers four types of financing: supply chain finance, debtor finance, line of credit & unlock. After assessing the loan application, the Company lists the application in the marketplace where investors bid auction style for funding the loan requirement. Later, the loan is disbursed.

Supply chain financing allows businesses to extend trading terms for up to three months. It has limits of up to $1.5 million with scope for negotiation in case of large amounts. In debtor finance, the lender accepts domestic or offshore invoices with limits between $100k and $4 million, and invoices are funded up to 60 days of issuance.

Also read: You Cannot Miss Out On These Business Loan Lenders in Australia!