Australia’s alternative lending industry is booming, both with foreign players launching operations in the nation, as well as local innovators launching their own businesses. On Monday (Dec. 14), reports emerged that the market has gotten one more player, and the timing of it is no coincidence.
Online small business lending platform FundX has opened its digital doors for Australian SMEs. Doing so just before the Christmas season was a strategic move, according to the company.
[bctt tweet=”‘For many businesses, Christmas is their peak sales period.'”]
“For many businesses, Christmas is their peak sales period, but the time period between investing in stock and receiving payment can be many months,” said FundX in a statement. “Businesses that can invest in extra stock at the right time can reap the greatest revenue.”
The firm’s founder, David Jackson, told reporters at AccountantsDaily that the platform was built with help from KPMG.
“With our system, having worked on a risk assessment algorithm with KPMG and through using our company’s own cloud-based invoicing history, we can provide an answer within one minute and cash the next day,” Jackson explained.
The company will offer invoice financing, which can be particularly useful for SMEs amid peak seasons like Christmastime. But year-round, factoring can be a popular business; according to Jackson, the market is worth more than $120 billion in Australia alone.
FundX emerged from BlueChilli, a Sydney-based incubator and accelerator, reports said. The platform saw venture capital investment by Collaborate Corporation Limited, itself a player in the P2P lending marketplace.
“FundX is able to leverage Collaborate’s peer-to-peer and marketplace skills and knowledge, while we simultaneously address significant opportunities in the FinTech sector,” Jackson told reporters.
FundX isn’t the only invoice financing player in Australia. Only days ago, SME accounting firm QuickBooks announced a partnership with factoring platform Waddle for Australian SMEs.
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