Moula is aiming to distribute an additional $250 million in business loans over the next 12 months to help small- to medium-sized enterprises “seize growth opportunities with confidence” at a time when limited access to funding is considered a notable challenge in the sector.
The non-bank lender also revealed that it is dropping its minimum annual percentage rate to 15.95 per cent.
Explaining the decision, Moula co-founder and CEO Aris Allegos (pictured) said: “Until now, online business lenders have competed with banks on speed, ease of application and customer service. However, competition based on pricing has been largely absent.
“With our new pricing and ongoing commitment to transparency, we’re now able to provide business owners with another option which is not only faster and easier than a bank, but also more affordable.”
Further, Moula announced that it is extending its loan terms from 24 months to 36 months, as well as increasing the maximum amount a business can borrow from $250,000 to $500,000.
Mr Allegos said that these updates were inspired by Commissioner Kenneth Hayne’s final recommendations for the banking royal commission.
“A banking system focused on customer outcomes and characterised by transparency is critical in servicing the needs of the consumer. Post-Hayne, we’ll start to see better pricing terms and product experiences, which is great news for business owners and consumers,” the Moula CEO said.
Moula’s announcement follows news that another lender, Pepper Money, would begin offering commercial real estate loans.
Last September, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) published a guide for SMEs on borrowing from fintech lenders.