NAB has signalled a potential rise in competition among the major banks to secure SME customers, with the announcement it will double the value of unsecured loans available to businesses.
“There is often a perception that access to credit is difficult without a property or other major asset to secure against,” said Leigh O’Neill, the National Australia Bank’s (NAB) executive general manager business direct and small business.
“That’s why we’ve responded by placing more emphasis on the strength of the business rather than traditional physical bricks and mortar, and we’re doing this at a fair and competitive price,” Ms O’Neill said.
In June 2016, NAB launched QuickBiz, an unsecured loan facility of up to $50,000.
However, eligible SMEs will now be able to apply for loans of up to $100,000. The bank also said it will provide a determination of the application in under 10 minutes.
“Six months after a QuickBiz loan application, just under half of our customers grew their business turnover by greater than 10 per cent. This confirms we have an important role to play by offering finance to businesses with good prospects – it’s the the kick-start they need,” Ms O’Neill said.
“Small businesses are the backbone of the Australian economy. We need all parts of the economy – big business, government and industry – to get behind them to move the country forward.”
The introductory interest rate is set at 13.85 per cent.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.