Australian financial services company Propell Holdings (ASX: PHL) has introduced a new in-house business loan product to give small-to-medium enterprise owners more access to capital for operating and growth purposes.
The lending product will offer customers a fixed dollar amount up to a maximum $250,000 over a fixed term of 12 months to fund the purchase of business assets and equipment.
It will allow for increased flexibility with the company’s line of credit facilities or fixed term loans at competitive market rates.
Initially the business loan will be launched as an unsecured product with Propell adding a secured facility over time.
Launched in 2020, Propell’s digital services platform is aimed at improving the cash flow and financial well-being of small businesses by aggregating a range of finance products and services including lending, payments and cash flow forecasting tools.
The company leverages its extensive customer database with an artificial intelligence-based engine to deliver its products in digital format.
Propell’s business has grown more than 30% per quarter since its ASX listing in April 2021.
It has experienced rapid growth of its customer base and hit a record 211% increase in lending to $2.53 million for the three month period to end March.
Propell chief executive officer Michael Davidson said the company was encouraged by significant demand from existing customers.
“This new loan product has been developed over the last few months in response to overwhelmingly positive feedback from customers on our existing suite of products,” he said.
“We were able to develop and launch it quickly by leveraging our existing system [which has had] extensive platform developments in the first half of this year to enable further product launches at very low technical and operating overheads.”
Fast and simple access
The launch builds on Propell’s aim of giving SMEs fast and simple access to finance products needed to operate and grow.
“Given its larger average loan size and target segment demand, this represents a new revenue line [for us] which is expected to contribute materially to our business,” Mr Davidson said.
“We are optimistic about the uptake and flexibility it will provide for our customers.”
Propell is currently working on securing a larger wholesale facility to support its continued growth while driving down wholesale funding costs and improving its margins.
Earlier this month, Propell opened an entitlement offer to existing investors to raise up to $2.22 million via a private placement of shares at $0.058 each.
The capital will be used to support an increase in the company’s lending facility, drive organic growth and cover administrative costs.