InfraRisk and Banjo Loans launch a short term loan platform in Australia

By Leandra Monteiro

Micro and small businesses will be able to source quick funding, like a buy now pay later solution, through Banjo Supply, a new digital loan platform launched by InfraRisk, a provider of digital lending solutions and Banjo Loans, a FinTech lender to SMEs.

Banjo Supply, is a loan product designed for SMEs and can be funded in minutes and starts from AU$5000. Using Infrarisk’s modularised SME digital lending platform powered by big data analytics and AI technologies, Banjo can streamline and automate the previously complex small business lending process from end to end. The loan product leverages alternative data sources for decision making.

Nicholas Davies, chief executive officer of InfraRisk said, “Our go-to-market approach to this business sector is to target select proven industry verticals that are rich in alternative data. It will initially focus on the hospitality and retail sector, which has also been hit hard by the outbreak of COVID-19 and in desperate need of working capital. We want to provide a tailored lending product directly into their daily workflow and financial ecosystem.”

The platform has been integrated with a number of data partners, including ZiiCloud, a hospitality and retail POS specialist, tapping into Point-of-Sale data, transaction data and regulatory reporting data, with customer consent. InfraRisk and Banjo will be looking at expanding the data coverage reach extensively over the coming months.

Guy Callaghan, chief executive officer of Banjo said, “Having worked closely with larger Australian SMEs over the past 6 years, we’re excited to enter into the micro and small business sector. Banjo Supply is specially designed to play a role in helping micro and small businesses get back on their feet and bolster the recovery of the Australian economy.”

Banjo has until now focused on companies with turnover of AU$500k – AU$50m. By combining previously inaccessible data with big data analytics and automation, Banjo will now extend fast unsecured loan amounts to small businesses in need of working capital, starting from AU$5,000.

Small businesses have been one of the main driving forces of Australian economic development. Official data released by the Australian government shows the country’s SMEs create 44% of jobs and contribute to 35% of its domestic GDP. Research by East & Partners found out that the unmet credit demand among Australian SMEs had reached AU$118.4 billion (US$91.5 billion) by the end of 2019.