This Butn Finance review provides an overview of who Butn are as a company and the types of business finance they offer. We’ll look at the tech integration that makes Butn unique and how this can help Butn clients, as well as their clients’ customers and suppliers. We’ll also take a look at the credibility and history of the firm, which has resulted in Butn’s ASX listing in 2021. Read our Butn Finance Review to find out if this lender is a good fit for your business.
|📝 ABN:||42 644 182 883|
|📝 Credit License:||644 182 883|
|💰 Loan Amount||Technically no minimum or maximum limits.|
Instantly approves invoices and purchases up to $75,000 – amounts greater than this approved same-day and an excess fee may apply
|⏲️ Loan Term||Until invoice due date|
|💸 Unsecured Loans?||Yes – invoices act as a type of security so no assets required to secure the loan|
|⌚ Lender Requirements||Registered business/entities with an ABN or ACN. Sole proprietors accepted too.|
|📃 Required:||Drivers licence for each of the company’s directors, and an online banking account.|
|⏱️ Response Time:||Once account is set up, invoices are approved instantly/same-day|
|🌝 Easy to Apply:||Yes, fully online (expedited application here)|
|💌 Online Reviews:||None|
|🏆 Awards and Recognition:||Financial Review – Fast 100, #73 (2021)|
Finnies – Excellence in Business Lending, Finalist (2021)
Finnies – Excellence in Business Lending, Finalist (2020)
|💳 Minimal Interest Rates:||Typically, the fee ranges between 3% and 6%. If a debtor misses the invoice due date, extension fees work out at 0.1% each day the outstanding balance of the invoice is overdue.|
|⚖️ Compare Butn||Compare Butn with 50+ Australian Lenders on Lend.com|
|Review Table of Contents|
Overall Rating: ⭐⭐⭐⭐
Company Story & Credibility
Founded in 2015, Butn Limited is an Australian Business-to-Business (‘B2B’) lender that’s innovating the way SMEs fund and grow their business.
Walter Rapoport and Rael Ross co-founded the Group and both continue to hold the role of an Executive Director and Joint Executive. All-inclusive, the senior leadership team is informed by over 100 years of combined experience in financial services and technology.
Butn focuses on transactional funding – i.e. funding SME businesses through their working capital constraints by financing individual transactions and leveraging the end debtor’s credit. With a vision of “Your money, today” Butn delivers cash flow funding solutions at the click of a ‘Butn’ and has funded over $1 billion to Australian businesses. Butn is already used by many of Australia’s largest B2B marketplaces, across a range of industries. Their technology employs the same encryption processes as the big banks, ensuring transactions are safe and secure.
In November 2020, Butn successfully raised $7.5 million in a pre-IPO Convertible Note issue to institutional investors to further support Butn’s operations, originations, distribution and receivables book growth. Further to this, in January 2021, MYOB Australia made a strategic investment of $5 million and entered into a strategic partnership agreeing to provide Butn X, one of Butn’s transactional funding products for business invoice factoring, for deployment to MYOB’s business user base.
The company achieved a successful ASX listing on July 6th, 2021 raising $20 million through strong institutional support. The firm did however see its share price fall from 0.50 AUD to 0.22 AUD within the first few months it was traded publicly. As of February 2023, the firm’s share price is 0.17 AUD.
That’s not to say the company’s performance isn’t strong. In Q2 2023, Buth hit a third consecutive quarter of record originations totalling $112.0 million – a 73% increase on the previous corresponding period and a 10% increase on the prior quarter. December 2022 was also another record origination month at $39.3 million, with Butn delivering record performances across eight of the past nine months.
Co-founder Rael Ross had this to say on the performance: “Butn continues to deliver sustained record performance… Growth in our platform channel is driving record originations at increasing revenue margin with no additional operational staff, supporting our mass distribution strategy through increased operating leverage. We continue to deepen our reach across our strategic channel partners, together with our cash position and increasing debt facilities providing growing momentum in FY23 and beyond.”
Credibility Score: ⭐⭐⭐⭐⭐
Butn’s Lending Solutions
Butn’s lending solutions can be defined in three categories:
Butn Pay provides its clients with the ability to integrate Butn as part of its online checkout or purchase experience. Working as a ‘Buy now pay later’ option for businesses, it allows customers of Butn’s clients to pay on credit. Working in the same fashion as consumers opting to purchase something from a business through a credit company like Klarna.
Butn Terms enables organisations to outsource their whole accounts receivable process from onboarding through to payments and collections. By signing up with Butn Terms, businesses can offer all of their business customers up to 60-day payment terms after a sub-5-minute registration process.
Butn X is a traditional invoice finance solution. Upload the invoice to Butn and they will provide the cash advance. Up to 95% of the invoice can be advanced and Butn will fund single invoices, multiple invoices or whole book solutions. A number of lenders only offer whole book solutions but Butn grants the power to the client so they can select the invoices they want financed. As a B2B solution, businesses can also opt to pay their own invoices through Butn, providing an option to pay suppliers instantly and then pay Butn when the invoice is due.
Butn Now is Butn’s working capital solution specifically targeted at commission earning companies such as mortgage brokers and real estate agents. Butn instantly advances commission into a nominated bank account and is then repaid the advance at settlement.
Butn Plus is Butn’s first foray into straightforward term loans for business. They provide secured business loans up to $600,000, though it’s not clear how long finance is granted for or what the terms of the loan are. Right now, it feels like this is very much a new offering where Butn is still finding its feet. Whilst the Butn website has a page dedicated to Butn Plus, the rest of the website refers to how Butn lends against receivables and makes little reference to its term loan solution.
Product Score: ⭐⭐⭐⭐⭐
Butn Client Reviews
– TrustPilot Australia: No Reviews
– Google Reviews: No Reviews
There are absolutely zero online reviews of Butn. No Butn reviews on the review platform TrustPilot (nor does Butn have a TrustPilot account) and there aren’t even any Butn reviews to be found on google.
Analysis of Client Reviews:
Considering we haven’t been able to find any client experiences with Butn, we simply can’t recommend the firm in this category. It’s odd that the firm has decided against using a review platform, particularly given how active the lender has been over the last year. Butn has issued over $300 million in finance in the last year and enjoyed three consecutive quarters of growth. You’d imagine there are plenty of satisfied SMEs in this period who would be happy with the cash advance they received.
What we can say is that MYOB, the multinational and market-leading business software provider in Australia, has sufficient confidence in Butn that it has not only invested $5million into the company but it has partnered with Butn to integrate the technology within its own ‘MYOB essentials’ platform. Making it possible for MYOB business customers to pay on finance at the click of ‘Butn’. In Q2 2023, the partnership with MYOB grew strongly with Butn continuing to roll out its platform solution to a broader range of MYOB customers.
Client Reviews Score: ⭐
Butn’s Online Platform
Butn’s website is very much what you’d expect from a fintech provider – it’s slick and easy-to-navigate but arguably lacks the detail to get a full understanding of Butn’s lending solutions and borrower requirements. That being said, there is an FAQ section which provides basic information on how to register and the fees that apply.
Being a publicly traded company, there is also an investor relations section where readers can get under the hood of the company’s financials and hear directly from Butn’s CEO & board.
Website Score: ⭐⭐⭐⭐⭐
Butn Loan Compatibility
- Startup: Yes, early stage businesses can be accepted.
- Bad credit: As funding is ‘secured’ by invoices it can be a good option for businesses with bad credit.
- Sole trader: Yes, Butn specifically states it works with sole proprietors.
- Established business: Yes, Butn accepts established businesses, though excess fees may apply for over $75,000.
- Turnover: There are no minimum turnover specifications.
Compatibility Score: ⭐⭐⭐⭐⭐
Butn Review Summary
- Credibility - 95%95%
- Client Reviews - 11%11%
- Website - 99%99%
- Compatibility - 95%95%
- Min Interest Rate - 94%94%
- Uniqueness of Solution - 98%98%
Butn is a fast growing fintech lender that, in addition to providing finance on the upload of a company invoice, can also issue finance at the click of a ‘butn’ when clients integrate the Butn widget within their checkout experience. For this reason, it’s commonly used by online marketplaces who sell goods wholesale B2B.
We are concerned by the lack of client reviews. It seems to be a result of Butn not registering for a review platform and it simply gives us no feel for what existing Butn clients have had to say about their experience. We are, however, comforted by the fact that leading organisations such as MYOB have opted for Butn as a product partner. The partnership allows MYOB to provide invoice finance within their own MYOB essentials platform. Thus, making Butn a great choice for existing MYOB customers.