Small businesses owners on the Gold Coast will be told of new ways to access financing to grow bigger faster at tomorrow’s Big Blue Sky event at Broadbeach Sofitel.
Hassan Khan, the Founder and CEO of Quantius Canada, is a speaker at the event, and explained how his company is being innovative in the area of lending money – and how it differs to standard financing through banks or investors. It’s addressing a problem many small businesses face.
“How do you give [these companies] – that have developed a lot of innovation and a lot of intellectual property – non dilutive, affordable capital so they can get from there to medium sized?”
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“There’s two challenges: the first is they’re complex – their customers and competitors are all over the world. Because it’s global, that comes with complexity. That’s tough for a bank to get its head around what the risks and opportunities are. The other problem is all the things they develop – the software, the data – they don’t exist as tangible assets. And that’s really hard to look at and see how that works.
“The bank looks at the complexity issue, they look at the lack of collateral. And, although they have very cheap financing available, they lend very little because of those two issues,” he said.
Mr Khan says his business looks at the broader picture of each small business – such as the value of the people in the team, the business model, the patents and what has already been produced.
“We address the complexity and collateral issue,” he said.
“We look at a company and – based on the mixed talents in the team – very quickly say ‘what does this mean?’ and also use technology to look at all the innovation and say ‘what does this mean when you look at it globally?’
“If we see … that we’re really dealing with something valuable, then we put together anywhere between $2m and $10m for what [the small business] needs, but give it to them in a form where we’re not actually asking them for a piece of their business.
“We make money off an interest rate the same way a bank would, but we’re lending far more than a bank would do,” said Mr Khan.