Melbourne, Australia, December 14, 2021 / PRNewswire / – Global SME Lending Fintech Tradeplus24 Australia restructured $ 25 million of its existing credit facilities to support the execution of a significant debt transaction of more than $ 100 million and reduce its financing cost by 4%.
iPartners secured the senior debt position and Wentworth Williamson has, alongside other existing debt providers, taken the remaining mezzanine debt position.
Following the transaction, Tradeplus24 is in the process of structuring a $ 100 million growth loan facility on terms that will allow it to scale quickly and offer lines of credit to SMEs at rates comparable to lenders requiring residential property as collateral – i.e. the family home of many other Australian business owners will not be endangered.
Tradeplus24 operates a multi-trust securitization structure wrapped in unique insurance which is recognized as quality by institutional investors, large debt funds and investment banks. Debt restructuring reflects significantly reduced funding risk resulting from Tradeplus24’s rapid growth in Australian loan volumes over the past 6 months, as well as an influx of requests from lenders following it’s recent $ 225 million raise.
Tradeplus24 too recently published calculations which showed a well-established lack of competition and predatory lending industry practices leave Australian SMEs underfunded to the tune of $ 291 billion by invoice financing alone, compared to UK SMEs.
The experience of Tradeplus24 operating across the UK, Switzerland, The Netherlands, and Australia enabled him to identify several predatory practices endemic to the Australian market which he believes are the source of underfunding and harm Australian SMEs disproportionately compared to other markets.
Among the problems was the much higher proportion residential real estate guarantees used by Australian commercial lenders compared to other OECD countries.
Tradeplus24 believes that these issues open up a significant market opportunity for it to expand rapidly in Australiabecause it helps usher in a new era of fairer practices and better invoice financing products.
Adam lane, Managing Director of Tradeplus24 Australia, says: “This new debt agreement is an important reflection of the strong confidence that debt capital markets have in our unique structure.
“With this cheaper debt, we hope to eliminate the need for more business owners to put their family homes at risk to stay solvent, especially when they are expected to grow and grow the Australian economy.
“We also want to help eliminate unfair industry practices such as price discrimination against SMEs outside the bank’s lending criteria, checking the SME’s bank account, preventing the SME from incurring other sources of debt, the application of voluntarily complex pricing structures and the foreclosure of SMEs in contracts of up to 2 years, although financed invoices have an average duration of about 40 days. ”
Travis Miller, Managing Director of iPartners, says: âIPartners is very happy to support Tradeplus24 in its next stage of growth. We can see a very bright future for their unique, game-changing invoice financing model for Australian SMEs. ”
Rob Harmer, Westworth Williamson portfolio manager, says: âWe were looking for a quality lender to partner with to monitor the growth of our fund and we found it in Tradeplus24. They have a great team, a great product and a sophisticated debt structure. We look forward to partnering. at Tradeplus24 to generate returns for our investors while helping the economy at large. ”
Tradeplus24 Australia (www.tradeplus24.com.au) is an alternative lending fintech that provides Australian SMEs with an asset-backed line of credit solution to manage cash flow and enable rapid growth. It launches an aid to respond to 80 billion dollars under-supply Australian business credit, and offer larger loans that most technology-based alternative lenders can provide: between $ 200,000 at $ 3 million. Tradeplus24 has already generated proven results in European markets, notably by securing the support of high-level investors from Credit Suisse Entrepreneur Capital, SIX Group and Berliner Volksbank.