Banjo Business Loan Review
In this review, we will go over Banjo’s lending practices, how their business operates, and how borrowers can begin the application process.
|📝 ABN:||32 713 685 984|
|📝 Credit License:||601 130 527|
|💰 Loan Amount||from $20,000 to $1,000,000|
|⏲️ Loan Term||6 months|
|💸 Unsecured Loans?||Yes|
|⌚ Lender Requirements||Must be in business for 2 years, minimum annual turnover of $500,000, must have good credit|
|📃 Required:||An ABN/ACN, identification, accounting information and banking details|
|⏱️ Response Time:||Funds received in less than 72 hours|
|🌝 Easy to Apply:||Yes|
|💌 Online Reviews:||4.8 / 5 – Based on 4 Google Reviews|
4.8 / 5 – Based on 455 Reviews on Trustpilot
|🏆 Awards and Recognition:||Included in Anthill’s Smart 100 for 2016|
|💳 Minimal Interest Rates:||10.70% p.a.|
|Compare Banjo||Compare Banjo with 30+ Australian Lenders on Lend.com|
|Review Table of Contents|
Banjo Alternatives in Australia
Banjo Business Loans understands that the needs of small businesses change regularly – and they built their business on the idea that those same small businesses should have access to funds as soon as they need them. They offer a wide range of loan amounts, and have a fast and easy application process, where businesses can gain same day approval and funds as soon as 24 hours after approval
Banjo Business Loans is also fairly streamlined in comparison to many of their competitors. Their website is easy to navigate, making the loan application process incredibly simple. Although a small benefit, this is something for borrowers to consider when applying for a business loan.
According to a survey, of every 6 Australian small business owners who applied for a loan at a bank, 4 of them didn’t get approved. Banjo Business Loans is working to offer a solution to this cashflow problem for SMEs.
Banjo Business Loans was originally founded by CEO Andrew Colliver in 2015. Colliver wanted to create a lender that offered affordable business loans. In Australia, a business credit card can take anywhere between 7 and 10 days for approval. Colliver knew that this is a problem within Australia’s small business community and set out to fix it.
Banjo focuses on modular technology to enable a larger, scalable operating system. As of 2015, Banjo’s cost ratio was 350 basis points below the average Australian bank.
Banjo Business Loans, and their CEO, have been covered in the media often and favorably. It’s clear that Colliver genuinely cares about his business model and the borrowers who Banjo serves. So what is the big “difference” that sets Banjo Loans apart from traditional bank lenders? Colliver says it’s technology.
Banjo Loans uses IOT and blockchain technology to create simple, yet incredibly high-powered and effective lending strategies. Colliver says, “For Banjo, we do not need to deal with retooling core legacy systems or transitioning existing systems to a new modular technology platform. We could review what the customer was seeking, and build a customized solution.” And build a customized solution they have.
In recent years, Banjo Loans have expanded significantly, recording 200% growth in 2022. As a result, they’ve restructured their leadership team and have recently expanded their product offering to working capital, express, flexi, and single pay loans, increasing their loan amount total for certain products up to $1 million.
Banjo Client Reviews
TrustPilot Reviews – 455
Google Reviews – 4
Analysis of Client Reviews:
Since our initial write up of Banjo Loans where they had no objective online reviews, they have since claimed a profile on Trustpilot and now actively requests for customers to provide reviews.
At the time of writing, Banjo Loans have an impressive 4.8 out of 5 rating on Trustpilot, where they have been heavily praised for their speed and efficiency, as well as the support provided from staff. Based on the lack of negative reviews, and the fact they’ve been able to maintain such a positive reputation following a period of significant growth, we would be happy to recommend Banjo Loans from a security standpoint.
Banjo Loan Pricing & Rates
As is commonplace with many lenders, Banjo Loans does not provide specifics regarding its interest rates but they do give an overview regarding some of their costs and fees. Banjo charges two types of standard costs; fixed fees and obligation fees.
Banjo Loans’ fixed fees, which is basically a factor rate, means that businesses will pay the same fee each payment cycle. It’s an alternative to variable interest costs, allowing customers to plan all expenses in advance but generally more expensive than paying an interest rate. The fixed fee will vary depending on the business’s circumstances based on a number of factors.
The other applicable cost is an origination fee, which is subtracted from the total amount borrowed with Banjo Loans. This fee varies based on the length of the loan as detailed below.
6 months – 1.50%
12 months – 2.25%
18 months – 2.50%
24 months – 2.75%
36 months – 3.00%
Banjo Loan Compatibility
- Startup: No. Banjo only works with businesses who have been in business for 2 years.
- Bad credit: No. Banjo requires a reasonably good credit score.
- Sole trader: Yes, Banjo works with all sizes of organizations.
- Established business: Yes, Banjo works with established businesses.
As Banjo Loans approach their 9th year of operation, they are growing into an established and trusted lender that are well set up for continued growth as they are seemingly committed to enhancing their product offering in response to the demands of the market.
Currently offering 4 types of business loans with loan amounts of up to $1 million, Banjo may be a viable and attractive option for businesses that have good credit and trade a minimum of $500,000 per annum. However, startups or companies that have bad credit will likely need to explore alternative lenders.