The startup having already raised $8 million in funding and one of eight Australian startups participating in the first Tel Aviv Landing Pad program, fintech startup Sail Funding is bringing airport-grade ID security to SMBs seeking small business loans.
The initial funding round was backed by Sydney-based investors and Messrs Marc and Gideon Lubotzky, who have joined Sail’s board of directors.
Sail Funding is developing a unique algorithm and forensic level security features to change the way SMBs access capital. The startup comes as the first Australian company to use a online ID verification, AU10TIX BOS technology, which is equivalent to the security screening one would find at a US airport.
The security solution automates the authentication and conversion to digital records of images of ID documents. This enables a forensic level detection of forgery and counterfeiting.
Founder of Sail Funding, Yanir Yakutiel, a former finance and shipping expert, said leveraging a new breed of security technology better positions the startup to support its customers through the process of applying for secure loans.
In a matter of minutes, business owners can apply and receive a loan offer that is tailored to their needs, helping them access capital and ultimately stay in business. Businesses can apply for loans between $5,000 and $100,000 with a weekly repayment schedule across three to 12 months. Businesses can expect access to these funds in their bank account the following day of approval.
Yakutiel says the service will appeal to business owners and entrepreneurs who are currently under-serviced by banks and traditional lenders.
“Often, what small businesses need most is cash flow at the right time. Sometimes it’s the difference between staying afloat or going out of business,” he said.
“Being rejected for a loan can be catastrophic but having to put up your home or car as collateral also causes significant personal challenges. By using our proprietary algorithm and unique security features, we can get a customised assessment of a business’ risk-level and get them the capital they need when they need it most, in a way that works best for them.”
By leveraging real-time big data, Sail Funding states it is able to get a fast, accurate and comprehensive snapshot of the health of small businesses and offer them a lending solution that encompasses growth potential.
Since 2010, Reserve Bank of Australia (RBA) figures have shown a steady decrease in loans under $500,000. Small loans have decreased by 7.6 percent, while larger loans over $2 million have risen by 35.7 percent. With small businesses responsible for 70 percent of employment in Australia, it is important they have the money to fund their growth.
The small business loan space in Australia has a number of competitors, which have emerged over the last two years. Fintech startups like Neu.Capital, Skippr and True Pillars are helping small businesses find the right finance loans for them.
The market has also attracted German startup Spotcap to launch in Australia as its third country of expansion. In May this year, Spotcap revealed it had experienced 30 percent month-on-month growth and is hoping to replicate that in Australia.
Sydney is without question Australia’s fintech and cybersecurity hubs, with nearly half of all startups listing NSW as their primary place of business.
To push local startups globally, earlier this year the NSW Government called for fintech startups to apply for the Tel Aviv Landing Pad to push Sydney’s reputation as Australia’s fintech capital, and help local startups enter the market in Israel.
“Israel is one of the world’s most innovative economies, and by creating a new corridor between Israel and ourselves – on issues such as cyber security, financial and medical technologies, and innovation – we can increase NSW’s competitiveness in the future digital economy,” Premier Mike Baird previously said.
Image: Sail Funding Team. Source: Supplied.