Lender spotlight: East Global Finance (Australia)
Earlier this year we welcomed Australian firm East Global Finance to our community of lenders.
Established in 2021, East Global Finance offers invoice and receivables financing products to small and medium-sized businesses across Australia. The team – based in Rose Bay, New South Wales – use Dancerace’s backoffice, client onboarding and client access systems, alongside our API and open accounting integration with borrower accounting systems.
Founder Zoran Lozevski is no stranger to the world of ABL, having spent 15 years in the sector in Australia and Asia – most recently as Head of Global Trade Solutions at BNP Paribas.
We spoke to Zoran about his plans for East Global Finance and why the only way is ‘up’ for receivables finance in Australia.
Dancerace: What types of business do you work with, and what products do you offer?
Zoran Lozevski, founder: East Global Finance was created to provide working capital solutions to small and mid cap companies, who are the life blood of every country's economy and the engine of innovation and growth for our future.
East Global Finance focuses on acquiring discounted accounts receivables on an invoice-by-invoice basis, by obligor, and on a total portfolio basis. This provides our clients with the funds they need to grow their business today and in the future.
We’ve also developed an innovative investor model to power significant investment in receivable finance as an asset class, with solid yield returns for investors. We ‘package up’ schedules of receivables for our investors and partners to purchase. Having authenticated, screened and approved investors, we can offer a list of investment opportunities to fund, even on a next-day basis.
We work with brokers and accountants whose clients could benefit from our services, both as borrowers or investors. And we allow our clients to handle collections, as we believe this is best for the relationship between our clients and their customers.
DR: Why was 2021 the right moment to create your new business?
ZL: Here in Australia and elsewhere globally, we’re seeing a surge in the number of businesses starting up. Those businesses need flexible funding, because the traditional bank model doesn’t quite work for small to mid-size firms.
We’re also seeing larger organisations extend their payment terms to optimize their supply chain flows. That means small and medium players are being left out or left at a disadvantage.
We’re also starting to see the effects of the end of emergency Government funding offered in 2020 and 2021. That funding is drying up or no longer exists, but firms will still need this type of support moving forward. Exposures in this area are set to grow at least 8% to 10% per annum, and will keep on growing.
The proportion of the factoring or receivables industry as a percentage of GDP in the UK is around 15%, according to recent figures. In Australia, it’s only around 3%. That signals massive growth potential for our sector. Small and medium-sized innovators need funding to survive, grow and thrive, which represents a rich opportunity for East Global Finance.
DR: What sets East Global Finance apart from other lenders?
ZL: East Global Finance – with Dancerace’s help – provides a full and true digital experience to our clients throughout their journey with us, from their initial enquiry, through onboarding, creation of their facility, and its everyday operation and evolution over time.
Dancerace’s open accounting integration with our borrowers’ accounting systems makes onboarding effortless. We’re seeing some other lenders provide similar solutions, but it’s not prevalent. We’re pioneers in this area – especially for a lender of our size.
What also sets us apart is that we offer big bank expertise to smaller borrowers. Structuring and solutioning finance products and navigating regulatory environments is difficult. Being able to reassure our clients of their safety and security, and offer the right type of financial support is something I can do following my extensive global and regional experience within very large financial institutions and corporates . That’s not something local businesses can access easily elsewhere.
DR: Why choose Dancerace for your lending systems?
ZL: Because Dancerace’s platform is very specialized and very focused on working capital. That made it the winner in terms of ticking my boxes, together with the richness of your API development and integration with key players like insurers, introducers and more.
Also crucial was the fact that Dancerace makes it simple for us to offer multiple types of facility, and match borrowers with the facility that best suits their requirements, for a long-term funding relationship. That’s banking 101!
DR: What’s next for East Global Finance?
ZL: Today, East Global Finance is focused on invoice and receivables financing, however we will naturally expand to trade finance/commodity finance – in year 2, before becoming an Authorised Deposit Taking Institution (ADI) in year 3, for our expansion into deposit-taking.
Our thanks go to Zoran Lozevski. To find out more about East Global Finance, visit eastglobalfinance.com.
Copyright Dancerace 2022. This article originally appeared on our LinkedIn page, here.