Judo Capital Review

Founded in 2018, Judo Bank (previously known as Judo Capital) keeps its headquarters in Melbourne, Australia. At this point, they are a fintech startup in the truest sense of the word – disrupting the Australian banking market like never seen before.  

In this Judo Bank Review, we’ll break down exactly what Judo Bankhas to offer, we learn more about their strategy and what makes them unique in the Australian banking sector. Ultimately  determining if they’re a good choice for SMEs. Read on for our full Judo Bank Review to learn more.

Judo Bank Review in Numbers

Loan amount: $250,000 to $10,000,000 (For unsecured business loans beginning at $5,000 see unsecured business lending in Australia top 5)
Loan term: Up to 5 years
Unsecured Loans Offered? N/A – it appears only secured loans are available
Requirements Lending on a case-by-case basis but security generally required
Australian Business Number (ABN): 11 615 995 581
Australian Credit License: 501091
Easy Online Application: No. There is no online application but you can input your details to hear from a member of the Judo Bank team.
Response Normally Within: Five Days
Documents Required to Apply: Proof of business assets and property.
Requirements to Apply: Proof of business assets and property.
Minimal Interest Rates: 2.07% (as of February 2019)
General Feedback from Clients Online: Judo Bank is only a little over a year old. At present, we can’t find any reviews on major sites like Trustpilot.
Awards and Recognition:
  • Largest single funding round in Australia ($400,000,000 – 2019)
Website Address: https://www.judocapital.com.au/

IMPORTANT NOTICE: Business lending with Judo Bank begins at $250,000 AUD. To borrow unsecured amounts below this you should consider our highest rated small business loan providers.

Short Summary:

In March 2018 Judo Bank launched with a bang, setting out to disrupt the Australian banking sector for SME’s. At the time of launch Judo Bank only held a lending license prior to achieving its full banking license in Aril 2019. It was a sign of intention that definitely showed us they weren’t going to wait around and it’s a move that looks to have paid off with the bank already granting over $1bn AUD in SME business loans. The banking license has since allowed Judo Bank to accept customer deposits in addition to the business lending functionality it offered since inception. Hence it was also rebranded from Judo Capital to Judo Bank.

Why have they generated such a buzz in Australia’s fintech industry? According to recent surveys, there is an $80 billion funding gap between SMEs and the financial establishment. As an industry, big Australian banks scored a 2.5/10 for trustworthiness, according to a poll of small business owners.

Over two funding rounds the firm raised a staggering $540m ($140m in series A, $400m series B) to kick start its bold ambitions in challenging the big four incumbent banks who have dominated the market for decades. The most an Australian start up has ever raised

In a nutshell, Australian entrepreneurs are fed up with the tight purse strings of legacy lenders. Firms like Judo Bank have liberal acceptance terms, flexible repayment structures, and more. As a result, they are experiencing exponential growth in a market starved for capital.

What Lending Solutions do Judo Bank Offer?

Judo Bank/Judo Capital offers several types of financing for its customers. They provide standard business loans – available with fixed or variable rates at terms up to five years, they also offer flexible repayment. These options include interest-only terms – useful for businesses experiencing tight finances.

Their line of credit is another attractive product for business owners. Offering up to $5 million in liquidity, businesses can cover unexpected expenses without interruption to their cash flow. With no scheduled repayments (other than interest), this product can stabilize a company’s finances.

Other products include equipment loans, finance leases, and home loans. Each offers flexible repayment options that range from quarterly to those tailored to seasonal cash flow.

At present, Judo Capital offers unsecured/secured loans ranging between $250,000 and $5,000,000. In addition to flexible repayment, the time frames of these products are also attractive. With terms as long as five years, payments are less burdensome on borrowers, allowing companies to focus on growth.

Judo Bank Reviews by Clients

As a newcomer to the alternative lending space, reviews of Judo Bank  are hard to come by. Saying that, it would appear they have intentionally decided against a Trustpilot page, a move similar to the four big banks of Australia. Perhaps an intention of the size they want to become but similarly we must ask that if they’re looking to differentiate themselves from the existing banking incumbents why not launch a Trustpilot like many other Australian FinTech’s have done? The leading online lender Prospa for example, has amassed over 4,800 TrustPilot Reviews. 

While not a customer review, two  employees have left reviews on Glassdoor. They  are positive reviews, lauding the fact they are ‘sticking it to the big banks’..

Analysis of Client Reviews:

Customers have yet to leave a review on their experiences with Judo Capital and to be honest don’t really have a method of doing so. As such, there is currently no data to break down. However, we can surmise that the experience of pioneer customers has been positive.

Judo Bank  Loan Compatibility

  • Startup: Yes, but they assess loans on a case-by-case basis with relationship bankers.
  • Bad credit: Yes, but they assess loans on a case-by-case basis with relationship bankers, unlike some other bad credit business loans in Australia.
  • Sole trader: Yes. Judo Bank do lend to Sole Traders but they should be aware of the minimum lending amounts.
  • Established business: Yes. With a track record, Judo Capital will gladly lend to established SMEs and this is their primary focus when considering lending starts at $250,000.

Judo Bank Review Summary

Judo Bank is shaking up the Australian banking market for business owners. With a focus on all clients being assigned relationship managers and relationship-based lending decisions they obviously believe SMEs are not getting their fair share of representation from the incumbent big four banks. 

However, looking at the minimum lending amounts there is still certain criteria which suggests these solutions are for mid-size companies and larger. Lending is on a secured basis and only begins at $250,000. For many SMEs this is simply not what their business requires, so if you are considering an unsecured loan or loan amount below $250,000 then Judo Bank is not the right fit for you. With a relationship based approach there’s less focus on speed too – there’s no online application or guarantees to fund clients on the same day. That’s not to say Judo Bank are not doing a great job at what they do, customers just have to be aware if it matches their business requirements.

 

Judo Capital Alternatives in Australia:

Unlike Judo Capital, the following Australian lenders allow easy and quick online application and financing as quickly as within 24h. If you require immediate financing you should look into them.

#1 The Market Leader
Editorial Rating 97.0%
  • Funding: $5,000 to $300,000
  • Multi-award Winning Market Leader
  • 1-2 Days for Response to Application
  • 4.9 / 5 on TrustPilot
  • Unsecured Business Loans Available
  • 20,000+ Australian Businesses Funded
#2 The Most Established Lender
Editorial Rating 94.8%
  • Funding: $5,000 to $300,000
  • Fewest Documents Required
  • Industry veteran for 17 years
  • 99% Positive Client Reviews
  • Unsecured Business Loans Available
  • Min. Monthly Turnover $10,000
#3 The Advanced Financing Option
Editorial Rating 93.1%
  • Funding: $5,000 to $500,000
  • Unsecured Business Loans Available
  • Secured Business Loans Available
  • Cash Advance Available
  • Line of Credit Available
  • Business Overdraft Available
  • Industry Awards
  • Established Businesses Only
#4 The Best-Known SME Lender Globally
Editorial Rating 90.7%
  • Funding: $5,000 to $250,00
  • Pristine Global Reputation
  • Promotes Ethical Lending
  • Smoothest Sign-Up
  • Clear Payment Schedule
  • Min. Annual Turnover $100,000