ANZ and Commonwealth Bank both announced the launch of upgraded small business lending services yesterday, addressing concerns that lenders are not doing enough to support SMEs needing finance.
ANZ has linked its small business lending operation to accounting software platforms, Xero, QuickBooks and MYOB.
It claims small businesses will receive conditional approval for up to A$200,000 in unsecured lending in 20 minutes using the new system, which was developed in partnership with DemystData.
Businesses must connect their accounting software platform to the bank’s credit platform, allowing the bank to access historical financial information.
The bank will offer overdrafts and loans with fixed and variable rate terms through the new system.
Commonwealth Bank has launched a similar service, BizExpress Online, with a more ambitious claim. Eligible customers seeking funds of up to $50,000 will receive a real-time credit decision and have the funds credited to their account in 20 minutes.
Customers can apply through Netbank or the CBA app.
Initially, BizExpress will offer new business loans under the Australian government’s SME Guarantee Scheme. Repayments will be deferred for the first six months and all fees waived for the life of the loan.
CBA group executive business banking Mike Vacy-Lyle said in a statement: “Small businesses need quick access to cash flow to keep them going through these tougher times and BizExpress aims to provide them with this.”
About 8000 SMEs have secured $700 million of funds via CBA through the guarantee scheme.
Vacy-Lyle said that in coming months the service will be extended beyond the guarantee scheme and offer a broader set of products.