European-based online lender Spotcap launched its New Zealand operations in Auckland. In addition, Spotcap partnered with New Zealand’s only NZX-listed bank, Heartland, which will provide Spotcap’s Australian operations with A$20 million ($15.1 million) in funding.

Spotcap provides flexible and accessible funding solutions to small- and medium-sized enterprises (SMEs) with unsecured credit lines and business loans of up to $250,000. Rather than basing credit decisions on historical financials, Spotcap has developed a unique, proprietary credit algorithm which provides deep insight into the financial condition of a business enabling quick and sound credit decisions.

“We aim to enable SMEs to embrace growth opportunities by offering our credit lines and loans to small businesses in markets that require access to alternative funding solutions,” said Lachlan Heussler, managing director of Spotcap Australia and New Zealand. “Spotcap already operates in the UK, the Netherlands, Spain and Australia, and the expansion into our fifth market is Spotcap’s opportunity to contribute to the growing New Zealand fintech landscape.”

Heartland’s partnership with Spotcap enables Spotcap’s Australian operations to accelerate their growth plans while the company executes its entry into the New Zealand market.

CEO of Heartland Bank, Jeff Greenslade, said, “Our partnership with Spotcap highlights Heartland Bank’s commitment to fintech and digital banking, in line with both our own internal offerings and our investments in the sector. We are delighted to gain further exposure to online SME lending and look forward to working with Spotcap to grow its Australian operations.”

Spotcap grew its Australian loan book by 450% from December 2015 to December 2016.