As the Aussie dollar continues to fall, small businesses across the country are feeling the pinch. Business owners like Spencer Smith are turning to alternative lenders such as Spotcap to support them through financial uncertainty.
Spencer has always had a passion for renewable energy, so much so that he recently made it his career. Spencer founded RV Solar Supplies, a specialist supplier of solar panels to recreational vehicles in 2013 and has experienced many successes in the past two years.
But because Spencer imports his solar panels from international markets he has found it difficult to maintain profit margins in the wake of the falling Australian dollar. Cash flow became a particular concern when a shipment of solar panels costs $15,000 more than it used to.
Spencer needed a short-term injection of funds to finance the shipment but knew from experience how difficult it is to apply for finance from a bank. Australian Bureau of Statistics data indicates small business loan applications are rejected at roughly twice the rate of medium-size businesses.
“The banks are only interested in historical business data and what security you can provide – as a new business I had neither.”
A friend referred Spencer to Spotcap and after some initial research he decided to give us a try. The ease of our application process and lending criteria appealed to him the most.
“Spotcap’s online process was simple and straight-forward and I was approved for finance in no time at all.”
Spotcap has developed a proprietary credit algorithm, leveraging real-time business data to provide alternative financing solutions to small businesses across the country. We offer unsecured lines of credit meaning we don’t ask you to borrow against your house.
Spencer was able to pay for the shipment of solar panels and ensure the continued success of his business. He is already looking to the future and may expand into solar storage, an industry he believes will experience major growth in the next five years.
Originally published October 14 2015 , updated April 26 2019