Back on its pre-pandemic path, Western Australia’s (WA) economic trajectory is leading the way across the nation, as small and medium enterprises (SMEs) in this state look to invest and grow.
However, despite their optimism, many SMEs in WA remain unable to secure the funding they need for growth, stifling the full potential of SME businesses and their role in Australia’s economic recovery.
Judo Bank’s SME Banking Insights report released in September 2021 found that one in four SMEs were knocked back from accessing new funding. In fact, the report shows that of all states across Australia, WA has the lowest rate of successful lending applications, yet is the most bullish on future borrowing intentions, with almost two in three businesses seeking new lending or refinancing.
Judo Bank customers, SKØL and ADENCO, were two businesses caught in this cycle – unable to secure the funding they needed and the service they deserved.
SKØL bar, Scarborough
In 2019, entrepreneurs, Mani and Ben approached the owner of their local café, Drift Kitchen, with the idea to turn some underutilised space in the venue into a bar. The owner saw the potential in the idea, and Mani and Ben were offered 25% of the overall business and they created SKØL.
SKØL bar is a hidden slice of Scandi on the fringes of Scarborough. It’s a local neighbourhood bar and eatery, with a laid-back vibe, which serves a unique, northern Europe-inspired menu and has a strong social media following.
Twenty months after the launch of SKØL, the owner of Drift Kitchen was looking to exit and offered Mani and Ben the residual 75% of the business.
Then COVID hit. Like many other hospitality venues across the country, SKØL was heavily impacted by pandemic lockdowns.
Owners Mani and Ben sought finance for the residual 75% of the business but could not find the right bank to support their vision.
That’s when Mani and Ben approached Judo Bank.
Through our unique, relationship-led approach, Judo’s Relationship Banker took the time to understand Mani and Ben’s position, and assess the performance and history of the business and its position in the market. In a short amount of time, Judo recognised the value in the SKØL and Drift Kitchen Brand, and was able to provide the funding Mani and Ben needed for the residual 75% of the business.
Mani and Ben now have complete control of the business and due to its ongoing success, are now looking to expand and grow.
ADENCO is a dynamic and growing company in the water management and civil engineering industry in WA, providing dewatering services, piping and infrastructure construction for key assets to WA mining companies across various commodities.
Off the back of the mining activity boom, ADENCO was growing strongly with a turnover that had doubled in 12 months. This was putting a strain on their cash flow. They approached their original bank, looking for advice and a solution to the company’s growing cash flow requirements. However, the ‘computer said no’ and ADENCO was unsuccessful and unable to get the support they needed to fund their business growth.
Then they spoke with Judo Bank.
Our bankers instantly recognised the opportunity for ADENCO and worked with the company to provide the funding and support it needed to continue to grow its business and build equity on its balance sheet.
Applying a specialised, human-centric view of the ADENCO business, its needs and its cash flow, Judo Bank quickly provided a tailored solution to suit the cash flow profile of the business’ forward order book, to help ensure ADENCO will achieve its future goals.
Judo Bank boldly backing businesses in WA
Our purpose is to be Australia’s most trusted SME business bank. Judo Bank’s relationship-led bankers bring back the craft of relationship banking to transform banking for Australia’s SMEs.
Built from the ground up by deeply experienced and highly credentialled business banking professionals, Judo Bank is a genuine alternative for SMEs looking to secure the funding they need and the service they deserve.
Judo Bank Managing Director WA Grant Erskine says, “our bankers are empowered to make judgment-based lending decisions using our ‘Four Cs’ lending framework, which prioritises character and cashflow ahead of capital and collateral, to tailor solutions to a customer’s business needs rather than applying a ‘one-size fits all’ standardised approach to lending.”
“Our strong growth since inception, including accelerated growth means we are reaching more and more SMEs nationwide, providing them the funding they need, when they need it most, with the level of service they deserve”, says Grant.
If you wish to learn more about Judo Bank, our products and services and how we can support you, please visit our website judo.bank or contact 13 JUDO (13 58 36) and one of our WA-based Judo relationship bankers will be in touch with you.
© Judo Bank Pty Ltd ABN 11 615 995 581 AFSL and Australian Credit Licence 501091 (Judo). The Information in this article (Information) does not constitute personal, legal, investment, taxation, accounting or financial product advice, is provided for general information purposes only, and has been prepared without taking into account your objectives, financial situation, tax position or needs. It is subject to Judo’s disclaimer at www.judo.bank/disclaimer.
