Home collateral ABC launches new digital lending product

ABC launches new digital lending product


The ABC has announced a new fintech-inspired SME loan product that uses invoices as collateral for business loans.

Stream Working Capital, their new digital lending product, is designed with Waddle fintech and can give SMEs quick access to financing without real estate collateral.

It will be available from next month and, according to Andrew Speers, general manager of ABC’s working capital, it can help small businesses by removing the barrier to entry related to real estate requirements.

“Stream is a digital working capital product,” he said. “Customers offer us their business assets in the form of invoices as collateral to size the loans. Imagine that you are a small business owner and you go to large and small businesses to provide your services, and you generate invoices. “

“What we do is look at these invoices and take them as collateral. Imagine that an SME uses something like Xero or Myob as an accounting package: we output the data directly via the API of this accounting package, like a pipe directly into their accounting system.

“We can instantly assess and approve this working capital. As this business owner sits at home at night watching TV, worried about how he is going to pay staff salaries or rent on the property, he can request an online broadcast.

“Instantly, on click, share this data and get an instant indicative response based on the live data feed of the accounting system. At all times, they have a portal that they can access online 24/7, when and where they need it, backed by a full service team.

“They can access their working capital as they sell. As sales increase and their working capital increases, they can borrow more. It is a very accessible and very smart digital solution that can help our clients to continue running their business and stop working on working capital.

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“As new entrepreneurs and innovators enter the market, it is very difficult to secure their working capital loans against real estate assets, with the rise in real estate prices. “

“Stream enables new businesses without real estate assets accumulated over the years or who cannot access the real estate ladder to obtain working capital solutions. It helps these clients without the need of the property requirement.

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