An Australian fintech is helping banks fight off eBay and PayPal

Trade Ledger, a tech startup which rethinks the way lenders assess cash flow solutions for high-growth companies that struggle to find credit, is set help banks fight off internet giants such as eBay and PayPal.

The fintech, based in Sydney’s Stone & Chalk, is out to challenge a financial model that has been around for hundreds of years – that a business credit application is assessed by looking at the assets held by the applicant.

“High-growth companies are making up a growing portion of GDP in every country, including Australia,” Trade Ledger founder Martin McCann told Business Insider.

“But bizarrely, high-growth companies cannot get any working capital solutions from any financial institutions, which is nuts, particularly when you consider that around 50% of the private sector workforce is employed by these companies.”

With the rise of online payment services from multinational tech giants, that gap is fast being filled by integrated merchant advance facilities.

“This is pretty much dominated by three companies in Australia – Tyro, which is home-grown, PayPal and eBay.”

Trade Ledger gives financial institutions the ability to assess credit risk by looking at the supply chain of a business, rather than its assets. Read more

Tony Yoo - Business Insider Australia - 110 Nov 2017