Demand for small business finance is expected to drive growth in online business loan, with business owners attracted to simple application process and fast funding.
Fintech Reckon has teamed up with online SME lender Prospa to offer its small business customers access to online business loans.
Reckon Loans via Prospa offers a more customised approach to finance – offering greater flexibility and access to the working capital that businesses need to manage cashflow and to grow.
Reckon Group COO Dan Rabie says: “With Reckon Loans, small business customers can leverage their data to make the credit process easier. We offer businesses simplicity and convenience through the lending application and fast funding on approval.”
“Fintech disruption has changed the business lending game, with online entrants challenging traditional providers of bank finance by introducing new cashflow financing options for SMEs,” Mr Rabie says.
He adds: “Data from accounting software used to evaluate cashflow is seen as the best measure of business fundamentals, helping to determine the business’ ability to repay and manage risk during the life of a loan.”
The demand for small business finance is expected to drive growth in online lending, with business owners attracted to the lack of requirement for property security, simple application process and fast funding. Reckon Loans is well positioned to meet this demand, said the company.
To apply, customers simply need to fill up an online form. The health of the business is analysed to determine creditworthiness using a proprietary technology platform. After Prospa assesses the application, customers can usually get access to funds the next business day.
“Reckon Loans complements our Reckon One online accounting software and is aligned with our long-term strategy of offering small businesses a full suite of solutions in the connected economy,” said Mr Rabie.
Like Reckon, Prospa is Australian owned and operated. Since 2011, Prospa has funded more than $150 million small business loans and the company boasts a 95% customer satisfaction score.
Prospa Joint CEO Beau Bertoli said this partnership aims to provide customers with a timely financial solution where traditional finance options fall short.
“By powering Reckon Loans, we are helping small businesses access faster finance solutions so they can make timely decisions and seize opportunities with peace of mind,” Mr Bertoli says.
Reckon customers can apply for an unsecured Reckon Loan between $5000 and $250,000. Loan terms range between three and 12 months with daily and weekly payment options available.
Prospa is the finance provider and facilitates the online application and decision process. In the future, the application process for Reckon Loans will be directly integrated into the company’s accounting software.