By:
Sam Althaus
Founder, Lendmigo
We founded Lendmigo at the end of 2024. I was working in venture capital, funding a range of businesses in their early stages. One of the companies I was involved in was a business funder based in the US.
I became incredibly interested in how the US market approached SME funding. It was significantly different from what the Australian market had to offer at the time.
After 2008, banks retreated heavily from the SME lending landscape for various reasons. The gap, if you will, was filled by private investors and private funders.
It became clear to me that the US had a well-developed market, with strong competition and access to a wide range of products.
When I looked at the Australian market, we saw a few players in the space and a couple of really strong incumbents. But we felt there was an opportunity for another player to bring a more American mindset to the market, particularly in how we underwrite, price and use technology.
You need to drill into the bank statements. That’s really where our underwriting starts.
It enables us to understand what’s happening in the business day-to-day, what’s going in, what’s coming out, why there’s a shortage, and when that shortage needs to be plugged. It also helps us understand how we can step in at the right moment to enable the business to weather the storm or capitalise on the opportunity at hand.
We analyse those statements and build a profile of the business. We essentially create a model based on what we see and what we believe would be a productive use of working capital.
“You need to drill into the bank statements. That’s really where our underwriting starts.”
- Sam Althaus
“You need to drill into the bank statements. That’s really where our underwriting starts.”
- Sam Althaus
You need to drill into the bank statements. That’s really where our underwriting starts.
It enables us to understand what’s happening in the business day-to-day, what’s going in, what’s coming out, why there’s a shortage, and when that shortage needs to be plugged. It also helps us understand how we can step in at the right moment to enable the business to weather the storm or capitalise on the opportunity at hand.
We analyse those statements and build a profile of the business. We essentially create a model based on what we see and what we believe would be a productive use of working capital.
We see plenty of clients with very active and healthy banking relationships. They might have a business overdraft or a sizeable facility with one of the major banks. But the reality is that business is unpredictable. Sometimes opportunities arise that require businesses to move quickly, and the bank simply takes too long to act.
If a client needs funds within 24 hours, it’s very unlikely they’ll be able to secure that amount of capital from a bank in such a short time frame. These clients are often less sensitive to cost or interest rates and more focused on speed and efficiency.
Fundamentally, it’s important to understand where our product fits and when it makes sense. One of the areas we specialise in is helping clients who need a quick turnaround solution but whose banks, for whatever reason, can’t move as quickly as we can.
“If a client needs funds within 24 hours, it’s very unlikely they’ll be able to secure that amount of capital from a bank in such a short time frame.”
- Sam Althaus
“If a client needs funds within 24 hours, it’s very unlikely they’ll be able to secure that amount of capital from a bank in such a short time frame.”
- Sam Althaus
If a client needs funds within 24 hours, it’s very unlikely they’ll be able to secure that amount of capital from a bank in such a short time frame. These clients are often less sensitive to cost or interest rates and more focused on speed and efficiency.
Fundamentally, it’s important to understand where our product fits and when it makes sense. One of the areas we specialise in is helping clients who need a quick turnaround solution but whose banks, for whatever reason, can’t move as quickly as we can.
When interest rates rise, demand for mortgages traditionally falls. For many brokers, that can mean a quieter period. If they’re looking to diversify their revenue streams, there are plenty of home owners in Australia who are also business owners.
It’s not uncommon for a broker to never ask whether a client they’ve helped secure a home loan might also need capital for their business. There’s potentially a significant amount of revenue to be generated from an existing mortgage book.
I think now is a unique opportunity for brokers looking to diversify into commercial lending. They can start by going through their existing book and asking these questions, because they’ll likely find plenty of home owners who need access to these solutions, and they need them now.
If you’ve worked with these clients before, you’ve already built that trust. We really encourage mortgage brokers to consider it, and if there’s ever a scenario they want to run past us, we’re always happy to chat.
“I think now is a unique opportunity for brokers looking to diversify into commercial lending.”
- Sam Althaus
“I think now is a unique opportunity for brokers looking to diversify into commercial lending.”
- Sam Althaus
I think now is a unique opportunity for brokers looking to diversify into commercial lending. They can start by going through their existing book and asking these questions, because they’ll likely find plenty of home owners who need access to these solutions, and they need them now.
If you’ve worked with these clients before, you’ve already built that trust. We really encourage mortgage brokers to consider it, and if there’s ever a scenario they want to run past us, we’re always happy to chat.
Given the uncertainty in the market, both geopolitically and macroeconomically, I imagine many business owners are concerned about what lies ahead.
I think brokers play a more important role than ever in helping business owners navigate these uncertain times. Access to the right capital solutions is becoming increasingly important as uncertainty in the market continues to grow.
As for where the market is heading, I think it’s anyone’s guess. But I believe we’re going to see significant growth in the working capital segment of the broking industry. More brokers are educating themselves about the space, attending professional development days and reaching out to understand how to access the right solutions at the right time.
We’re looking to support that transition and growth within the broking industry. We’d encourage any mortgage or commercial brokers to reach out. We’re happy to provide whatever support we can to help you service your clients.
“I think brokers play a more important role than ever in helping business owners navigate these uncertain times.”
- Sam Althaus
“I think brokers play a more important role than ever in helping business owners navigate these uncertain times.”
- Sam Althaus
I think brokers play a more important role than ever in helping business owners navigate these uncertain times. Access to the right capital solutions is becoming increasingly important as uncertainty in the market continues to grow.
As for where the market is heading, I think it’s anyone’s guess. But I believe we’re going to see significant growth in the working capital segment of the broking industry. More brokers are educating themselves about the space, attending professional development days and reaching out to understand how to access the right solutions at the right time.
We’re looking to support that transition and growth within the broking industry. We’d encourage any mortgage or commercial brokers to reach out. We’re happy to provide whatever support we can to help you service your clients.
Sam Althaus
Founder, Lendmigo
