Earlier this week, Harmoney announced there has been an increase in Kiwi SMEs that are tapping into peer-to-peer (P2P) lending for business cashflow.
The New Zealand online lender stated it estimates $100 million will be loaned to business accounts through its lending platform within the next six to twelve months. Currently, the average loan amount for business cashflow on its platform is $25,000.
“Getting a small business off the ground and keeping it afloat can be difficult if not armed with adequate cashflow. New Zealand is ripe with business start-ups, but many struggle to stay ahead, and it’s often due to financial constraints. This is the case for many customers of kiwi peer-to-peer lending platform Harmoney. In fact, it seems that more and more kiwis are tapping into a DIY mentality and going out on their own, as funds for business start-ups and general business cashflow now makes up more than 15% of Harmoney’s loan applications, making it the fifth most popular loan reason.”
While sharing more details about the recent increase of SMEs seeking funding through P2P lending, Andrew Cathie, data scientist at Harmoney, stated:
“While debt consolidation is still the number one reason people use the Harmoney platform, we are finding a lot more businesses are taking advantage of the sites ease of use for start-up purposes, general business cashflow and even to fund tax payments.”
Harmoney added that it continues to provide loans for various ventures nationwide.