Assisting your small business clients with finance can be challenging with so many options out there from both banks and newer alternative finance providers.
As traditional lenders have tightened their credit conditions and pulled back on SME lending, the rise of online, fintech lenders is providing small businesses with new opportunities to fund their growth.
However, how can you objectively compare the loan pricing metrics between the different online business lenders and make the most informed decision possible? The answer is with SMART Box™.
The SMART Box™ Loan Comparison Tool empowers accountants and borrowers to better understand and assess the cost of small business financing by disclosing standardised prices.
In June 2018, a group of leading online lenders signed the Australian Finance Industry Association Online Small Business Code of Lending Practice (‘Code’), which aimed to make it easier for borrowers to make informed decisions about their finance options and increase transparency and disclosure standards across the Australian online business loan sector. The code was created through collaboration with the Australian Small Business and Family Enterprise Ombudsman Kate Carnell, FinTech Australia, and small business advocate, theBankDoctor.org.
SMART Box™ stands for ‘Straightforward Metrics Around Rate and Total cost’ and is included in all business loan offers from online lenders compliant with the Code.
The one-page comparison tool includes clear and consistent pricing metrics, calculations and metric explanations. It discloses the Total Cost of Credit, Average Monthly Payment, the Annual Percentage Rate (APR), and more.
SMART Box™ makes it easier for accountants to clearly identify if a financial product is right for their client’s needs, exactly how much it is going to cost and if a product is the best solution available to them.
Trusted lenders who are compliant with the Code and offer SMART Box™ can easily be identified with the accreditation ‘trustmark’. Make sure you look for this ‘trustmark’ when dealing with an online lender for your client’s business finance needs. As of March 2019, there are currently seven compliant lenders, including Spotcap.
Spotcap's Head of Sales, Rohan Cubis, has first-hand experience helping accountants who are part of Spotcap's Partner Network.
Rohan said: “As trusted advisers, accountants play a crucial role in helping their business clients navigate their way through the fundraising process and identify finance solutions that fit their needs.
“With SMART Box, accountants are able to add more value to their clients by exploring different finance routes with all costs and fees clearly visible. Many SME owners are not aware of the alternative finance options available to them, so proactive guidance to help them understand the benefits of online business loans can make all the difference to their success.
“Advising clients on funding is also the perfect value-add to broaden an accountant’s services and core business. It can help grow and future-proof an accounting firm, as well as generate new revenue streams.”
To learn more about SMART Box™, visit Transparent Business Loans With Spotcap