PLEASE TELL US ABOUT THE NATURE OF YOUR BUSINESS.

Mortar Finance takes a relationship approach to business finance. We provide tailored advice to Australian SME’s on the most effective ways to raise capital and offer detailed analysis on their:

Capital Expenditure;

Cashflow Finance;

Commercial Finance;

Home Lending;

Grant eligibility; and/or

Internal cash drivers

We provide further support to our clients by advising them on strategy and effective capital decision-making within their business.

WHAT ARE THE BIGGEST ISSUES YOUR CLIENTS ARE FACING IN THE CURRENT CLIMATE?

Our clients, for the most part, have successfully engaged their professional networks to make strong decisions early during COVID-19.  These decisions centred around breakeven figures, stimulus packages and funding strategies. 

With this is mind, many of our clients have benefited from capital strategies including how to create free cash flow, how to best use additional funding and strategies around developing a stronger business post COVID-19 (whether that be through investing in staff, technology or diversification).

WHAT IMPACT DO YOU THINK COVID-19 HAS HAD ON THE LENDING LANDSCAPE?

The lending landscape has changed significantly. I have fears around liquidity, appetite and Fin-Tech lending balance sheets. 

Whilst COVID-19 has created some challenges in the market, I forecast the real impact will be felt 12 – 18 months from now. The challenges I predict include:

How will lenders assess those impacted (i.e those who hold job support loans, those who have accessed deferrals or the recipients of stimulus packages)?

The borrowing capacity of many businesses that have borrowed for unrecoverable losses– what will this do to future business spending and growth? How long will it take for these businesses to flip and start making a profit again?

Will market sentiment have a greater impact than the actual economic drivers (think -perception around property loss v reality)?

How will lender appetite be impacted?

HOW DO YOU SEE THIS CHANGING IN THE COMING MONTHS?

Please see above

WHAT PROBLEMS HAS APRICITY SOLVED FOR YOUR CLIENTS?

Recently, we placed 1 deal with Apricity Finance, supporting a high growth client in the civil industry to perform a Tier 1 debtor. Being a progress claim bulk earthworks contract, the capacity to fund with other lenders was limited given the funding limit requirement. 

Apricity managed to get a strong understanding around the debtor and client and clarified the factorability of the debt (considering the contract, delivery, sign off and invoice elements). This allowed Apricity to produce a 95% gearing against invoices, supporting cashflow right throughout the project. 

I am confident to say this project would not have been performed without Apricity’s finance solution.

WHAT DO YOU LIKE MOST ABOUT APRICITY?

The commercial nature of assessment and risk, providing an opportunity for businesses to manage cashflow on larger projects. Apricity backs good businesses, with experienced management and strong debtors.

It would also be amiss for me not to mention the brilliant BDM, Rebecca.