Official announcement, can't see any mention of $20m...maybe I have gone cross eyed already this morning and need another coffee ????
https://www.nzx.com/companies/HBL/announcements/296137
Printable View
Official announcement, can't see any mention of $20m...maybe I have gone cross eyed already this morning and need another coffee ????
https://www.nzx.com/companies/HBL/announcements/296137
Hope all this innovative fintech and algorithm stuff doesn't lead to another sub-prime type crisis - especially when they use words like unsecured business loans to SMEs
At least Heartland are only funding Spotcap by the looks of it - not taking on the loans directly?
Couldn't find it on NZX, but it's noted here:
http://www.advfn.com/news_Global-Onl..._73726911.html
Seems like a good move to me, HBL not sitting back but looking to leverage a first mover advantage. Loving the focus on growth, I do some concerns in general that HBL is increasing its risks a bit in the event of an economic downturn.
I do think HBL has one of the best small business lending strategies around at the moment. It's gone quite digital and very easy to get a 50K+ approval in a day online.
Spotcap launched in NZ
Aren't they then competition for Hesrtland in NZ
Heartland funding NZ as well?
Or is that another story?
Well W69,we know all stories end the same way.
Happy ever after with more profits going straight to HBL's bottom line.!
With so few details announced I can't see the point,yet.
As an accountant I can attest that by and large many small business owners without real estate security can struggle to get business finance (asset finance over specific vehicle(s) is easier). There are other forms of lending like receivables factoring but can be very expensive. Plant and equipment is rarely viewed as a suitable asset so this niche lending (provided its based on well supported financial analysis) could prove to be quite lucrative and from my experience meets a genuine need in the market. The NBR article says pricing is based upon perceived risk so provided they have their systems well established pricing should more than cover the anticipated default rates assumed within their lending model. I doubt they would take this initiative if similar types of new initiatives through other channels hadn't already proved to be highly profitable.
Spotcap must be good news for HBL - it's the only share in my portfolio in blue among a sea of red today!