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How inflation is creating strong tailwinds for fast-growing Aussie lending business

May 4, 2022

How inflation is creating strong tailwinds for fast-growing Aussie lending business

Australia’s more than two million small businesses are being urged to brace for rampant inflation, creating unprecedented demand for effective cash flow financing solutions.

Australia’s more than two million small businesses are being urged to brace for rampant inflation, creating unprecedented demand for effective cash flow financing solutions.

Propell Holdings’ all-in-one small business financing solution has seen strong growth in its user base as entrepreneurial Aussies look for new ways to manage their cash as inflation hits its highest rate in 21 years.

Propell provides small business owners with quick and easy access to debt financing through its digital-only platform, easing the bottlenecks associated with traditional lenders, including physical paperwork, weeks-long delays and complicated red tape.

For business owners, this means not having to wonder where the money needed to pay staff, buy materials or invest in growth will come from while anxiously waiting for clients to pay their invoices or banks to make decisions on loan applications.

 The company’s unique platform also offers business analysis, cards, accounts and payments – bringing these services together with lending into a one-stop shop for small business financing solutions.

With no competitors offering an all-in-one cash flow solution, Propell has grown its client base to more than 1700 businesses and is on track to double this figure by the end of 2022.

Join CEO Michael Davidson on Thursday, 5th May, at 7pm (AEST) for a live investor briefing. Discover how Propell has grown its customer base 420% since March 2021, hitting 30% quarter-on-quarter growth in March 2022, and learn its plans to continue growing exponentially. Click here to book your spot.

Australia is home to approximately 2.3 million small and medium enterprises (SMEs), which collectively employ over 4.7 million people (over 41% of Australia’s workforce) – making it the largest employer type in the country.

Collectively, these businesses have borrowed more than $420 billion from banks and other lenders to fuel their growth, but increasingly these businesses are looking to alternative financing options after growing frustrated with traditional banks’ time-consuming lending processes.

More than one-third of Australian SMEs have signalled their intention to switch away from the banks, citing dissatisfaction with the rates banks offer, the lengthy and complicated application processes and lack of flexibility with repayments as key drivers of their decisions.

In recognising these issues, Propell has built a platform specifically for small and medium business owners to access the capital they need to manage their cash flow and continue to flourish and grow.

After completing registration (a process that takes only five minutes), Propell’s users can access six or 12-month lines of credit up to $250,000, with interest only paid on the money that clients actually spend.

Using an automated, online system, small businesses can access multiple financial services starting with a free business analytics tool that assesses their financial health, offers insights and establishes a borrowing limit.

Propell’s platform is the only one on the market that brings together these services into a single tool designed specifically for small businesses.

Exceeding its own customer growth targets since its IPO in April 2021, Propell has exponentially grown its customer base to ~1700 clients (more than 420% in the past year, with ~3400 targeted by late 2022), formed partnerships with Square, Stripe and Zip, increased its average loan size 138% in the past quarter (~$6000 to ~$14,000), and set a goal of 100,000 small businesses on the platform within five years.

Source: Propell Holdings Limited

The business is currently earning 25-30% annual fee revenue from interest received against its lending book and is steadily lowering its customer acquisition costs and solidifying its position within the SME borrowing market.

It maintains a first-mover advantage and is currently ahead of its own growth forecasts, with the upcoming addition of new products expected to accelerate this expansion.

Source: Propell Holdings Limited

Click here for an opportunity to hear directly from Propell CEO Michael Davidson in a live investor briefing on Thursday, 5th May, at 7pm (AEST).

Big opportunity in small business

Australia’s SME lending market is in a state of flux, with business owners on the hunt for better, more efficient and flexible cash flow solutions to manage the difficult conditions posed by inflation.

Propell’s comprehensive, all-in-one finance platform represents a disruptive solution to these problems, which has to date serviced hundreds of small businesses around Australia.

The company’s market-leading technology provides fast and easy access to lending products, business analysis tools, payments, and soon both cards and accounts.

The company is targeting a client base of 100,000 SME businesses within the next five years, with enormous potential to grow in Australia’s 2.3 million-plus small business market.

With no direct competitors offering a holistic financial services suite through a single, digital-first platform to minimise red tape, Propell is now focused on growing into this large addressable and underserved market. 

Join the live investor briefing with Propell CEO Michael Davidson on Thursday, the 5th May, at 7pm (AEST). Click here to book your spot.

Reach Corporate provides Corporate Advisory Services to Propell Holdings Ltd and has been engaged by them to manage their investor communications and may receive fees for its services.

Sources:


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