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Disrupting the SME Lending Market

Aris AllegosCEO & Co-founder, Moula

Small Business Lending

Requirements for collateral to

be held against SME loans

can result in, allocative

inefficiencies where loans are

made to businesses with the

best collateral, rather than

those that are the best

business prospects.

Reserve Bank of Australia

• Funding the growth of a SME’s

business is a challenging and lengthy

process which has been dependent on

manual underwriting

• During 2015, $14.3 and $41.8 billion of

new credit was approved with loan

principal less than $100,000 and

$500,000, respectively.

BUSINESS LENDING, 2015

1. Financial System Inquiry Interim Report, July 2014

2. Reserve Bank of Australia, “Bank Lending to Business – New Credit Approvals by Size and by Purpose – D7.4”, Mar 2016

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Small Business Lending

• More than 1.5 million SMEs access business lending, with a large

proportion relying of borrowing less than $100,000

• Both Australia and New Zealand lead the world with the adoption of cloud

accounting, exceeding 40% penetration

• The growth in cloud based accounting solutions has enabled Moula to

develop an innovative and unique underwriting model

Discussion Sources

Accounting DataBest measure of serviceability,

indebtedness and assurance

Transaction DataSecondary measure of serviceability,

limited relevance to indebtedness

Bureau DataLimited relevance to business risk and

poor gauge of creditworthiness

Business DataRisk assessment based on firm size, age,

industry, geography, etc

Other (e.g. Social)Limited relevance, however, used

holistically can be a measure of risk

More

Pre

dic

tive

Less P

redic

tive

Source: HBS Working Paper Series, “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game”, Jul

2014

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Our Background

Founded July 2013

Strategic Partners

Headquarters Melbourne, Australia

Technology Proprietary, wholly owned and developed

Funding Institutional

Innovative Proprietary platform, built to accommodate accounting data sources

Responsible Driven by ethical lending standards: transparent pricing with no hidden fees

Experienced Founding team with extensive expertise in banking, accounting and technology

VALUES

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Application Process

Business &

Personal

Information

STEP

ONE

Tell Us Where to

Deposit The Funds

STEP

THREE

Link Your Data

STEP

TWO

Moula will push

journal entries to the

general ledger,

accounting for the life

of the loan

Products

Product Term Loan (Unsecured) Line of Credit (Unsecured)

Size $5,000 - $250,000 $5,000 - $250,000

Term 6 – 18 months 6 – 12 months

Pricing (Per Fortnight) 0.75% - 1.50% 0.75% - 1.00%

Payment Fortnightly Fortnightly

Availability Repeat at ~50% amortised Draw on-demand

Minimum Lending Criteria

• 12 Months | The business must have been in operation for 12 months (and have been operated by the applicant)

• $5,000 Per Month | The business must demonstrate average monthly revenue of over $5,000 ($60,000 per annum)

• Fair or better | The business, and the individual director, must have a fair or better credit history

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Design

• Intuitive design for

easy-of-use

• Detailed customer

dashboard

• Partner portal for loan

referral

• Ongoing customer

management

Our Customers

I just went online and applied –

they had a really simple three

step process. About ten minutes

after I made the application, I

got a phone call from them saying

the loan was approved …

Laurel

Get Digital Flow

I spoke to our accountant and she

introduced me to Moula … they

assisted me and within 24 hours

we had a cash injection. It’s

good to know that when we get a

good business opportunity, we can

get support.

Stephen

Scotty’s Wholesale Meats

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Our PartnersMy client had some cash flow issues

given their obligation to pay

employees prior to receiving

payments from their debtors.

I initially called Moula, and

subsequently signed up to the

Partner Program and was able to

refer my client in a matter of

minutes. The team at Moula took it

from there…

Kerry Hargreaves

The Book Balancer

Get started by

registering online

as a partner

Register

Earn a

commission on

all funded loans

referred

Reward

Refer clients and

track the process

of their loan

online

Refer

Get in touch

partners@moula.com.au

1 300 88 52 36

moula.com.au/partners

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