“Grow Finance Limited is a non-bank lender focused on servicing Australian SMEs looking to thrive, manage cash flow, and deal in today’s increasingly complex and competitive operating environment.
Grow’s total addressable market is more than A$422B, showing its diversity in product offerings. The company has achieved key milestones in the last 12 months, and this offer represents one of the last opportunities to invest in it before it goes to IPO.”
David Verschoor, Executive Director, Grow Finance Limited
Grow Finance Limited is an award-winning non-bank lender focused on being the primary lender of Australian SMEs. Grow Finance aims to eliminate the challenges associated with securing finance for small and medium-sized businesses.
Grow’s team includes finance experts from all Australian states specialising in direct lending for small and medium enterprises (SME). These experts have over 50 years of combined experience in assessing and providing credit.
Grow Finance is the only non-bank SME lender in Australia that offers asset finance, trade finance, invoice finance, insurance premium finance, and business loans – making it a one-stop-shop for SMEs.
- The Adviser Magazine has awarded the following to Grow Finance in the SME category:
- 1st place – Invoice Financier
- 2nd place – Best Business Loan
- 3rd place – Asset Finance
Proven Origination Model
- Grow has over A$240M in current loan facilities across asset finance, trade finance, invoice finance, insurance premium finance, and business loans and continues to originate high-quality loans to proven borrowers.
- The company has experienced strong originations achieving A$15M in new business monthly with more than A$130M in new originations since January 2021.
Focused on Prime Credit
- Grow Finance targets prime bank quality borrowers using technology in the credit assessment process.
- Grow has experienced a loss rate of less than 1% on originated deals and experienced minimal COVID-19 impact by concentrating on specific non-cyclical industries.
- Grow has invested heavily in technology to enable a fast and efficient application and credit assessment process.
- The company is in the final stages of its customer portal testing with an imminent release to its customer base. The portal will allow the further extension of credit to performing clients across its entire product set.
- The company is supported through several warehouse funding lines, with two additional funding warehouses from major banks under negotiation – resulting in a significant expansion in lending capacity.
- The executive management team has invested significantly in Grow’s performance, evidenced by their combined ownership of more than 45%.
- Grow is negotiating a strategic relationship with a global investment bank, resulting in a A$55M (maximum) investment into the business across multiple instruments. This relationship will enable access to global capital markets, propelling the company’s growth aspirations further.
Invested Institutional Investors
- Grow’s current shareholders include several high-profile institutional investors from Australia and Asia. These individuals continue to support the business as it works towards an IPO.
Grow is undertaking a pre-IPO capital raise, providing investors the opportunity to acquire fully paid ordinary shares at an issue price of A$0.60.
This pre-IPO offer is anticipated to conclude Grow’s capital requirements and allow the business to focus on the continued growth of the lending book.
The company aims to achieve a business listing within 18 months, subject to the continued growth in originations and favourable market conditions.
Strategic and existing shareholders have subscribed to the offer, with a small parcel remaining to new outside investors.