Another successful company in the merchant cash advance industry, OnDeck, has recently increased its presence in the international sector. First reported by deBanked on July 18th , OnDeck announced that it closed on a $75 million (AUD) asset-backed revolving credit facility with Credit Suisse for its business engagements in Australia. The deal will be used to refinance OnDeck Australia’s current loan book at a significantly lower cost, in addition to funding future business ventures in the land down under. This is another indicator of the Global Alternative-Lending boom.
The move comes shortly after Lending Express CEO Eden Amirav told deBanked that the success his company found in Australia in just over a year provided the confidence to enter the U.S. market.
“After the immense success we’ve had in the Australian market, we knew that our platform was ready to take on the U.S.” Amirav said in June.
Several of the larger fintech companies, including OnDeck , joined forces to create a set of best practices, called The Code, that would regulate how fintech companies operate in Australia. Since the inception of The Code, the market in Australia has seen fairly rapid growth and expansion over the last few years.
In fact, as deBanked also reported in September of 2015, the joint CEO of the Australian based lending company, Prospa, Beau Bertoli views the influx of competitors as a good sign.
He said, “There’s more publicity and more credibility for what we’re doing here in terms of alternative finance.”
He later continued to vouch for the growth of the industry as a whole, stating: “Some view the Australian rush to an alternative finance not so much as a solitary phenomeon but instead as part of a worldwide explosion of interest in the segment.”
Well, since Bertoli’s interview with deBanked in 2015, the landscape of the alternative finance industry has grown tremendously. Introducing companies such as Velocity Group USA, which has taken the successful blueprint laid out by competitors and refined it to create a truly superior lending and financing service.
The growth in this sector is undeniable and it is inspiring to see that the massive expansion is not limited to the United States, but is, in fact, showing serious signs of growth across the globe. Find out more about the growth within the U.S. here.
First reported by deBanked: https://debanked.com/2018/07/australia-brimming-with-alternative-lending-activity/