A European online lender operating in the Australian market has announced a partnership with a listed bank as it looks to expand its SME finance offering.
Spotcap this week revealed it has entered into a partnership with NZX-listed Heartland Bank. Spotcap will subsequently launch its New Zealand operation in Auckland.
The online lender provides flexible and accessible funding solutions to small- and medium-sized enterprises (SMEs) with unsecured credit lines and business loans of up to $250,000.
Rather than basing credit decisions on historical financials, Spotcap has developed a proprietary credit algorithm that provides deep insight into the financial condition of a business and enables quick credit decisions.
Spotcap’s managing director of Australia and New Zealand, Lachlan Heussler, said the group aims to enable SMEs to embrace growth opportunities by offering credit lines and loans to small businesses in markets that require access to alternative funding solutions.
“We are excited to have Heartland support our local operations through this investment, and coupled with the progression into the New Zealand market, it puts further focus on our region’s potential to become global leaders in the fintech space,” Mr Heussler said.
He added that the partnership with Heartland Bank and the $20 million funding facility enables the fintech lender to grow its Australian operations while the company ramps up its entry into the New Zealand market.
“Our partnership with Spotcap further highlights Heartland Bank’s commitment to fintech and digital banking, in line with both our own internal offerings as well as our investments in the sector,” Heartland Bank CEO Jeff Greenslade said.
“We are delighted to gain further exposure to online SME lending and look forward to working with Spotcap to grow its Australian operations,” Mr Greenslade said.
Spotcap grew its Australian loan book by 450 per cent from December 2015 to December 2016. The group has raised more than $110 million in equity and debt funding, and issued more than $90 million in credit to SMEs around the world.
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