Find out why the Directors at Capspace have such an in-depth understanding of the challenges faced by brokers and their small business clients.
Small businesses are the backbone of the Australian economy but many struggle to access the capital they need to take their success to the next level. Often, this is because of slow approval processes, endless red tape and unsuitable borrowing solutions on offer from the big banks.
While I am now one of the Directors at Sydney private lending firm Capspace, I spent many years as a commercial loan broker. Because of this, I know how challenging the space can be.
The trouble with small business loans
After completing my studies in Business, Economics and Finance, I began my career with Westpac in the 1990s. I switched to work with an independent broking business in the early 2000s, then stepped out on my own in 2005.
My firm specialised in commercial and small business loans, and I noticed over and again how SMEs hit the same roadblocks when the time came to expand.
As a broker, I was constantly frustrated by:
- Approval processes that took months
- Endless paperwork and documentation requirements
- Inflexible criteria that meant applications were denied
- Inconsistent points of contact
I also found that big bank credit managers would leave mid-way through transactions, or that credit approval has been centralised/offshored, which meant I was constantly explaining the same things to different people.
The other problem was banks insisting on taking into account financial records that were several years old. When you have experience supporting SMEs, you’ll know two years can be a lifetime and past financial information isn’t the best indicator of current or future success.
It’s not that banks and larger lenders don’t want to help companies at the smaller end of town. They’re simply not set up to do so. But the result of this is so many SMEs miss out on the chance to reach their full potential.
Not much changed during the 20 years I spent as a broker, which is why some of my industry peers and I decided to create our own solution. We launched our private lending company Capspace specifically to meet the borrowing requirements of Australian small businesses, and to make things easier for the brokers who support them.
Providing a better solution
Capspace is a private lending company that is focused on small business loans. We offer what the banks can’t, including:
- Approval and settlement in days, not weeks
- Far more flexible loan criteria
- An in-depth understanding of SME operating models
- Minimal red tape and paperwork
- Consistent points of contact
- Ongoing relationship management
These are all things I wished I had access to when I operated as a broker.
As a lender, I can tell almost straight away if a small business is a good candidate for a loan. Because Capspace is more flexible than major providers, due diligence is a far more streamlined process and finance can be issued in weeks rather than months. As a result, quality SMEs can have the rapid access to finance that they need.
Empowering small business agility
As a broker, I hated having to tell clients they were unlikely to get loan approval from a bank. Now, I’m pleased to be solving the problem.
Of course, it also helps that I have an excellent network of experienced brokers as contacts. The individuals I prefer to work with have:
- Commercial experience
- An entrepreneurial mindset
- An understanding of how business works
- The ability to think laterally
- Up-to-date market insights
- Knowledge of how private lenders operate
The brokers Capspace deals with are versions of myself several years ago. Together, we are helping businesses to access short-term and flexible borrowing solutions that empower growth.
Want to discuss a flexible loan solution for your small business clients in Sydney? Get in touch with Capspace today.
Disclaimer: Capspace Holdings Pty Ltd (ABN 97 653 097 164, Australian Credit Licence 528707) is an Authorised Representative (AR No. 001293273) of Guildfords Funds Management Pty Ltd AFSL 471379
This information has been prepared by Capspace Holdings Pty Ltd (ABN 97 653 097 164, Australian Credit Licence 528707). It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs.
You should consider the Information Memorandum (IM), prior to making any investment decisions. Neither Capspace nor any company related to Guildfords (Aust Pty Ltd) guarantees the performance of any fund or the return of an investor’s capital.
