Data from the Digital Finance Analytics Small and Medium Business Surveys highlights that firms who apply for unsecured credit are getting funds more quickly on average now, compared with 2015. You can request a copy of our latest SME report.
However, there are considerable differences between the average timeframes experienced by SME’s when they deal with the major banks, compared with those going to the Fintechs. The new players are faster.
SME’s as they become more digitally aligned, also have a higher expectation of service, with firms saying that 4.8 days would be considered, on average, a reasonable time to time wait, as we discussed in the Disruption Index, a joint DFA and Moula initiative. The next edition will be out soon.
We think major lenders are responding to the the competitive pressure to turn applications around faster, as the number of Alt. Lenders grows. This is good news for all SME’s seeking a loan.
To underscore this, we note that RateSetter is now offering loans of up to $50k, unsecured, with a 24 hour turn around to the SME sector. RateSetter which launched in 2012 was the first peer-to-peer lender licensed to provide services to all Australians, not just wholesale and sophisticated investors. RateSetter provides secured and unsecured loans to Australian-resident individuals and businesses.