Judo Bank business loans

By   |   Verified by David Boyd   |   Published 15th September 2021

Judo calls itself "Australia's first SME-focused challenger bank". As its name would suggest, Judo relies on its size and agility to win against larger banks and other lenders. It is fast and nimble with a focus on small and medium enterprises (SMEs), helping them capitalise on the opportunities that come their way.

If you would like to know more about Judo’s background and how it can help you, read on for more information.

About Judo Bank

Founded in 2016, the Melbourne-based Judo Bank is one of the newer players disrupting Australia’s banking and financial services sector.

Judo got its ADI (Authorised Deposit-taking Institution) licence from APRA in 2019 and began taking retail deposits. It went on to rank among the top 10 in the WhiteSight’s Top 20 neo-banks of 2020, a list of independent neobanks from around the globe.

In 2021 it took $284 million in funding from new domestic and international investors including UniSuper, Magnetar Capital, and Moore Strategic Ventures. More than 70% of Judo's existing investors also contributed.

Following the previous funding round in 2020, Judo achieved unicorn status.

The neobank provides a host of financial services for SMEs, including business loans, lines of credit, equipment loans, and term deposits.

Although it's a neobank with a modern tech stack, it also relies on building relationships. Judo has a network of business bankers spread across Victoria, New South Wales, Queensland, Western Australia, South Australia and Tasmania.

Judo Bank products and services

Business loans

  • Fixed, variable, and combination rate loans.
  • Low fixed interest rates and low rates in general.
  • Flexible repayment terms up to 5 years.
  • Secured loans between $250,000 and $5 million, with an option to borrow up to $10 million.
  • Cash flow repayment matching.
  • Principal and interest or interest-only payments.
  • A fee is charged for early repayment of fixed rate loans.

Judo Bank determines the interest rate it charges on loans and credit facilities with reference to the monthly recalculated Judo Market Base Rate. This is determined monthly with reference to the BBSY (BBSW Bid Rate), Judo’s cost of funds and prevailing market conditions.

Line of credit facility

Draw on funds up to a pre-approved limit with flexible access to credit for small business growth and reinvestment.

  • Can be used as assistance for working capital needs.
  • No scheduled repayments.
  • 12 month term with an annual review.
  • Variable interest rate rate.

Equipment loan

Suitable for purchasing business equipment and purchases with a charge over the asset (that is, the asset is used as loan security).

  • Fixed interest rates.
  • Repayments with an optional balloon.
  • Flexible repayment frequency to match cash flow.
  • Preserve working capital.
  • Interest and asset depreciation may be tax deductible.
  • Terms of up to 5 years.

Term deposits

You can also invest with Judo bank.

  • Government guarantee on deposits up to $250,000
  • No fees payable.
  • Bonus interest rate available when you roll over the deposit.

How to apply

There is no formal online application. You can call them or provide the following details online and have a Judo bank member get back to you.

  • Full name
  • Company name
  • Postcode
  • Email address
  • Phone number
  • Type of business finance you are seeking, how much and what it will be used for.
  • A short message

Once you have submitted an enquiry and the necessary documents, a business banker from Judo will contact you to discuss your situation and get things moving. There are no promises of same-day lending.

Required documents and information

  • Proof of business assets and property.
  • Your business turnover and average profit over the last two years.
  • Financial statements for the past two years.
  • If funding is for working capital or growth, a detailed breakdown.

FAQs

Can you apply with bad credit?

Yes, on a case-by-case basis.

Can a startup with a short trading history apply?

Yes, on a case-by-case basis.

Is there a redraw facility?

No.

Can sole traders apply?

Yes.