Bizcap increases lending capacity to help more SMEs

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SMEs struggling to secure loans from banks can now turn to Bizcap for quick finance to fund their growth and meet their cash flow needs. The non-bank lender has increased its lending limit in New Zealand to cater to the needs of even more businesses

WHEN IT comes to defining what drives New Zealand’s economy, small businesses could be called the engine room. Businesses with fewer than 20 employees dominate – there are about 546,000 small businesses across the country, which equates to 97% of all companies, Stats NZ data shows. These small businesses generate 28% of the nation’s GDP and employ more than 631,000 people. Medium-sized businesses (between 20 and 99 employees) make up a further 2.2% of all New Zealand companies. While New Zealand SMEs have been grappling with economic challenges, they are bouncing back from the pandemic, according to the CPA Australia Asia-Pacific Small Business Survey 2022–2023, with 59.7% of SMEs reporting growth in 2022 – up from 33.2% in 2021.

Bizcap is a leading provider of fast and convenient business loans within Australasia, and we’re the most open-minded lender in the market. We provide small business loans in as little as three hours. We have just increased our loan limit in New Zealand to $2m, a 50% rise from the previous $1m limit, in order to support even more SMEs. We have an easy online application process, and saying “yes” more often means hassle-free solutions for business owners and industry-leading commission for our partners. Bizcap is the perfect solution for SMEs who need extra financial help. We’ve helped over 15,000 small business owners get the funding needed to take their businesses to the next level.

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“We pride ourselves on saying yes to more customers more often – and in most cases, cash flow capital, or a bridging loan, can make a world of difference to SMEs”

Rebecca del Rio, Bizcap

To facilitate this growth, SMEs need access to fast, tailored finance. However, as banks react to rising inflation and other economic challenges, SMEs are finding it hard to obtain finance from them. The CPA survey shows that 44.2% of SMEs required funds from an external source in 2022, but only a quarter (25.7%) found them easy to access. In fact, 53% found the experience difficult. This is where non-bank SME lenders such as Bizcap can help. An easy alternative to the banks, they can assist advisers and accountants in securing finance for their business customers. NZ Adviser caught up with Bizcap chief revenue officer Rebecca del Rio to find out more.

A leading business lender in Australia, where it has operated since 2019, Bizcap launched in New Zealand at the end of 2021. Del Rio says Bizcap is driven by a desire to help small to medium-sized businesses grow and flourish. That’s why it has recently increased its lending capacity in New Zealand to $2 million. Businesses that need a large cash flow boost can now receive it – without going through the rigmarole of a business loan application via a bank. The decision to launch in New Zealand was a relatively easy one to make, del Rio says, as it aligned with Bizcap’s purpose and the needs of Kiwi SMEs. The decision to increase Bizcap’s lending capacity was an even easier one.

Applying for business finance can be a very time-consuming process, but Bizcap has a different approach. "We believe that Australian and New Zealand small businesses should have fast access to the capital they need to grow, and they shouldn't be limited by antiquated methods of loan approvals,” says del Rio. "We have a robust, systematic credit process and we don't believe in one-size-fits-all solutions. We assess each application (business) individually and our open-minded approach to lending means we look at more than just a business’ credit score. We’re proud to provide short-term business loans from $5,000 to $2 million, with speed." Del Rio says Bizcap’s aim is to help SMEs overcome short-term hurdles and set themselves up for a successful future.

To meet Bizcap’s loan criteria, businesses must have:

“We understand how businesses work, and we work with our partners – financial advisers – to make the process easy. They also get paid industry-leading commission for funding deals through us”

Rebecca del Rio, Bizcap

Bizcap recently funded its largest-ever deal, providing a retail and hospitality business owner in Sydney with a $3.8 million secured business loan in just two days. The client required bridging finance to support a hotel refurbishment and its cash flow requirements. Bizcap was able to offer a fast and efficient solution when the company’s loan facility with its existing bank couldn’t meet its needs. The broker who facilitated the deal said, “The process with Bizcap was smooth and seamless, despite the complex corporate structure of the customer. The team kept me in the loop the whole way through, and they were a pleasure to deal with.”

Del Rio says it’s important that advisers and accountants have multiple options for their SME clients. This is where Bizcap can offer cash flow finance as a bridge-financing tool to get clients funding when they need it most.

giving financial help for small business owner

Bizcap in New Zealand

Case study

Published 10 Apr 2023

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Loan products, value proposition for advisers

• an active NZBN (New Zealand business number) • been operating for a minimum of five months • turned over a minimum of $12,000 per month

“We pride ourselves on saying yes to more customers more often – and in most cases, cash flow capital, or a bridging loan, can make a world of difference to SMEs,” she says.

Bizcap provides finance to a range of business types, from retail, services, transport, manufacturing, agriculture, construction, direct marketing and events, to glass tinting, panel beaters/collision repairs, towing services, taxi and car hire services and more. Del Rio says there have been instances of financial advisers not having heard of Bizcap but after working with the lender they were “blown away by the easy and hassle-free process” and by being able to secure funding for their clients within a few hours. “We understand how businesses work, and we work with our partners – financial advisers – to make the process easy. They also get paid industry-leading commission for funding deals through us,” she says.

Assisting advisers with business loans

SMEs have re-emerged from a hibernating economy, and with rapid market changes spurred by new technology, business owners are moving away from traditional bank loans to specialist providers, says del Rio. Inflation and economic challenges mean big banks are being more cautious when assessing SME loan applications. "Unfortunately, the businesses which fail to secure a loan with traditional lenders are more likely to be the ones struggling with cash flow, managing expenses, and finding and retaining skilled staff,” she says. “When others are tightening restrictions, we continue to fund businesses from all walks of life.” In 2022, there was a drastic increase in the number of small businesses reaching out to non-bank lenders for funding. “We’re continuing to see this trend in 2023, largely due to the amount of red tape and lack of open-mindedness that comes with the traditional bank lending processes. We expect to see this trend continue.” Del Rio says Bizcap is pushing the envelope on traditional lending and is focused on delivering solutions for both brokers and business owners. “Our business development managers are here to work closely with brokers, accountants and finance professionals to say yes to even more customers.” Click here to learn more about the Bizcap Partnership offering, and start funding your SME clients today.

Helping SMEs through testing times

Bizcap assesses each loan application individually and works with clients who have credit scores of any size; have been rejected by traditional lenders; have not received the full funding they were after; or have defaults and/or judgments and need fast access to working capital. Del Rio says Bizcap has partnered with hundreds of advisers and accountants, offering their customers fast, convenient and hassle-free funding. Since inception, the company has helped more than 15,000 Australian and New Zealand SMEs.

Bizcap partnership process

Partner Portal set-up Submit your clients’ details using the Partner Portal and get live access to the deal flow. Bizcap will contact either you or your clients (based on your choice).

Review and assess Bizcap will quickly assess your client’s information and within a few hours will provide a conditional offer showing repayments and the applicable factor rate.

Offer acceptance and fund transfer Once the offer is accepted, Bizcap completes the credit checks, sends a contract via DocuSign, confirms the finer details (over the phone) with the client and then transfers the funds to the client.

Commission payment After the loan settles, Bizcap raises an invoice and transfers your commission weekly.

Increased employee numbers

Increasing costs had major negative impact on the business

Required funds from an external source

Sought external funds for business growth

Sought external funds for business survival

Found it easy or very easy to access external finance

31.8%

22.3%

2022

2021

37.0%

28.7%

44.2%

45.5%

28.7%

24.8%

24.3%

40.4%

25.7%

61.0%

Source: CPA Australia Asia-Pacific Small Business Survey 2022–2023

NZ SMALL BUSINESS ACTIVITY 2021–22