Ebury, a global corporate banking services provider for SMEs, is entering Australia’s non-bank lending market.

Ebury announced today that it had started competing head-on with large banks and Australia’s growing number of non-banks by offering trade finance for unsecured payables and receivables with line sizes of up to $5 million per client.

The fintech, which has 22 offices globally, is the largest non-bank in the world that focuses on SMEs that trade internationally. Ebury set up in Australia just under a year ago, based in Sydney, initially offering foreign exchanged related products and services.

Ebury Australia Managing Director Rick Roache said today that the company had now plugged Australia into its global trade finance platform and was targeting SMEs looking for capital to grow.

“We see a huge opportunity in supporting Australian SMEs, which research shows are experiencing a collective $80 billion funding gap. SMEs have faced great difficulty getting capital for their business, especially those with volatile revenue and cash flow.

“It is not surprising then that more than 90% of SMEs are considering alternative lenders who provide rapid credit approval, especially those like Ebury who do not require security for funds borrowed. The market is there for the taking,” Mr Roache said.

“Ebury is disrupting both established banks, non-banks and so-called neo-bank lenders, who use outdated operational processes relating to factoring, invoice finance and import finance,” Mr Roache said. He added that while there had been innovation in the non-bank lending space, a lot of that disruption had been targeted at the smaller end of the market.

“Our clients require larger credit lines and have more complex needs. Most retail business lenders can’t or won’t meet these needs and are targeting business borrowers with smaller loan sizes, higher interest rates and longer terms.”

Mr Roache said Ebury was immediately competitive because the features of its trade finance products made them the best in the Australian market. Ebury offered clients an easy to use online platform, complete cost transparency, no additional fees and only charged interest for credit used. The payable finance line offered an up to 150-day repayment period and the firm’s receivable finance product a 120-day repayment period and financed 90% of funds to be received.

Ebury could also integrate clients into its deliverable FX platform, allowing clients to collect, hedge and make payments all in one place. This negated the need to use a traditional transactional bank for cross-border business, Mr Roache said.

With a valuation of more than $1 billion, Ebury is a ‘unicorn’ and has offices across Europe, the Middle East, North America, and Canada and is expanding across Asia.

Apart from trade finance for a company’s buying and selling cycle, Ebury offers a variety of corporate banking services in more than 130 currencies, including FX solutions for collecting, hedging and payment challenges, as well as bespoke risk-management and cash management strategies.

To find out more about Ebury, please visit: www.ebury.com.au