Australian businesses are celebrating a long overdue reprieve with the launch today of Australia’s first business finance comparison website, Finnovate, set to empower businesses with choice and trigger competition among lenders through total rate and fee transparency.
The revolutionary web-based business finance model allows businesses to access and compare the rates and fees of nine major lenders and apply for equipment and vehicle finance and leasing online, representing a major boon for Australian business as the financial year kicks off.
Chris Beath of A Class Business Finance, the Brisbane-based asset finance group behind the new website, said they created Finnovate to provide businesses with a new pathway to finance through a model that puts the ball firmly in their court.
“Unlike mortgage financing which operates to a fairly homogenous interest rate model, it is widely acknowledged that rates offered to Australian businesses for equipment and vehicle finance transactions are far more variable and more difficult to compare on a like-for-like basis,” Mr Beath said.
“There has been a long-standing lack of legitimate competitive pressure in the SME loan segment, largely due to the fact that lenders keep their rates very close to their chests, and borrowing insight has suffered because of this.”
“Finnovate totally changes the game – until now there has been nothing like this in the business sector.
“We are fighting hard for Australian business by introducing greater transparency in this space, and the fact that nine of Australia’s biggest banks and financiers have come to the table and partnered with us, proves that we have a product that represents the future of business finance in this country.
“We are a totally independent and impartial entity. The site does not advise businesses on which lender to select, it simply presents all the relevant information, allowing them to make an informed decision.”
Mr Beath said the Finnovate website was designed to be incredibly user-friendly, offering a convenient, fast, efficient online finance application process for transactions up to $1 million. Transactions over $1 million will be dealt with personally by Finnovate.
“Each Finnovate step is explained in layman’s terms and users can access a help function throughout the site. The application process takes between five and 15 minutes to complete, and that’s the vast majority of the application done. The final steps are completed over the phone or in person with the chosen financier, who contacts the client directly within 24 hours.
“What we are providing is a 24/7 one-stop-shop for business finance from rate comparison and application through to approval, and we believe this will be the catalyst for change in Australia’s business finance landscape.”
Mr Beath said Finnovate was being launched with the aim of capturing a 5 per cent share of Australia’s $36.7 billion business finance market within the first five years, with a longer-term goal of 10 per cent.