The Adviser magazine caught up with Bizcap's chief revenue officer, Rebecca del Rio, who explains how an open-minded approach coupled with unbeatable turnaround times have made Bizcap's success possible.

Bizcap recently passed a major milestone – $1 billion in loans funded. How would you describe the journey?

The journey started in April 2019, when Abraham White and Zalman Blachman decided to launch Bizcap. Initially, they planned on starting a brokerage, but when they went out to market and got their product cheat sheets from lenders, they realised a lot of them were telling the same story and offering the same product.

Being a privately owned and funded company, with no debt facilities or institutional money, worked to our advantage and allowed us to take market share through COVID-19. Every other lender ceased lending for periods of time or at the very minimum restricted lending significantly.

Bizcap took a very rational and logical approach. Seeing what industries were still trading, Zalman adjusted our credit criteria and credit decision making multiple times a day. We were able to keep our doors open to lending thanks to this open-minded mentality of seeking out opportunities to assist small and medium-sized enterprises (SMEs).

To date, Bizcap has funded more than 25,000 loans totalling $1 billion, while retaining a 4.9/5 Trustpilot rating, which speaks to the satisfaction of clients and brokers.

What role did the broker channel play in this milestone?

Brokers have been instrumental in our growth. They make up a huge percentage of our loan book – sitting at about 60 per cent – which is something we’re incredibly proud of.

Having deep connections with brokers is instrumental. We’ve really focused on education over the last year, in particular, spending the time to host events and webinars, and connecting with brokers on a more intimate level to help workshop deal scenarios with them.

Bizcap bills itself as an open-minded lender. How does this help SMEs?

Unlike other lenders that inherently look for reasons to decline a deal, Bizcap actively seeks out ways to support viable businesses in achieving their goals.

Bizcap’s unique credit assessment model takes into account both qualitative and quantitative factors to gain a holistic view of each customer’s financial situation and business opportunities to take a risk-assessed approach to lending.

This holistic approach to credit assessment allows Bizcap to say “yes” more often to SMEs across a wide range of industries and risk levels, including those with existing debt and past judgements. It is also why 76 per cent of eligible Bizcap loan applications get approved.

We understand that running a business is hard, so we don’t get deterred by bumps in the road; if our team of expert credit professionals believes a business faces a viable opportunity, Bizcap will actively seek a way to support it.

How does Bizcap’s new Line of Credit product work?

Business owners and brokers have been asking us for a solution that allows them to access funds whenever they need them, without the need to apply for a loan each time.

Bizcap’s Business Line of Credit affords them the flexibility and autonomy to access funds whenever they need them and only pay for what they use.

Retailers have utilised Bizcap’s Business Line of Credit to make quick stock purchases, builders have used it to pay import duties on building materials, and childcare facilities have dipped into funds to pay salaries between government grants. Others have used it to plug cash flow gaps pending asset settlements and large bank loans.

With facilities up to $300,000, the product empowers business owners to plug cash flow gaps, cover unexpected expenses, pay wages and suppliers, and seize growth opportunities – all without having to apply for a loan each time. They simply log in to their portal, make the drawdown, and get on with business.

That’s what makes it so popular: businesses only have to pay for the funds they use and they have the flexibility to draw on the funds whenever they need them, without having to apply each time. This is also why it’s such an attractive product for brokers, as they receive commissions on every drawdown.

What is Bizcap’s approach to customer service?

We recently won the WeMoney Award for Outstanding Customer Service – Business Loans, which recognises our customer-centric approach and commitment to ensuring that both SMEs and brokers experience best-in-class service and lending solutions.

The speed at which we work is a key component of our customer service. We pride ourselves on providing SMEs with fast access to flexible business loans, approving them in as little as three hours and funding them that day.

The award also recognises the ease and accessibility that Bizcap affords small business owners across a range of industries and financial situations in obtaining loans, thanks to our open-minded approach.

What support does Bizcap offer the broker channel?

We’re investing in tailored educational resources and support mechanisms such as scenario workshopping, events – including our newly launched Lenders’ Corner series – and webinars.

We’re actively educating brokers on the importance of discussing cash flow management with their self-employed clients. By empowering brokers to initiate these conversations effectively, we aim to fortify our value proposition for both brokers and their clients.

We also offer advice to brokers about how to initiate conversations with their clients about offering them business loans. We also provide marketing content that brokers can share with their databases, along with educational presentations explaining how our business loans work.

When a broker joins our network, they’re assigned both a BDM and a broker support representative. This ensures seamless communication and assistance for brokers regarding commissions, sell rates, and sales strategies.

Another factor that sets our services apart is our ability to shoulder the workload on behalf of brokers. Some brokers may hesitate to offer business loans due to it not being a core product in their business. However, we can act as experts on their behalf through a Tick ’n’ Flick referral model, where we engage directly with the client, explaining our product, and handling the deal process. Brokers can thereby earn commissions without managing the deal themselves and enjoy trail commissions from repeat deals.

Why should brokers partner with Bizcap?

We make it easy. Brokers partnering with Bizcap gain access to a genuinely niche product. We offer fast and flexible solutions unparalleled by any other lender in Australia, with approvals in as little as three hours and same-day funding. Our loans range from $5,000 to $5 million and each facility is tailored to the individual client, including daily or weekly repayment terms and early repayment discounts. We pride ourselves on being more open-minded and adept at filling financial gaps that other lenders can’t. We can service customers with existing loans, past judgments or defaults, and bad credit, as well as SMEs in volatile industries like construction and freight.

In an environment where other lenders struggle with lengthy turnaround times and increasing red tape, we stand out by dispersing funds in as little as three hours for new clients and half an hour for existing clients, making us the best-placed lender for meeting urgent financial needs.

This article first appeared in The Adviser