Target Market Determination: Float Business Growth Loan

1. About this Target Market Determination

This Target Market Determination (TMD) is prepared and published by Float Payments Pty Ltd (Float) voluntarily. Float publishes TMDs for all of its credit products, including business purpose products, as a matter of good practice and in support of its governance framework. Whether the design and distribution obligations (DDO) set out in Part 7.8A of the Corporations Act 2001 (Cth), as applied to credit by section 12DAB of the Australian Securities and Investments Commission Act 2001 (Cth), extend to business purpose credit outside the National Credit Code is not settled. Float has adopted the DDO framework for this product regardless.

The purpose of this TMD is to describe the class of business borrowers for whom the Float Business Growth Loan has been designed and is likely to be appropriate, having regard to the borrowers’ likely objectives, financial situation, and needs. This TMD also sets out the conditions and restrictions on the distribution of this product, the events and circumstances that would require a review of this TMD, and reporting obligations.

This TMD is not a product disclosure document or credit contract. Borrowers should refer to the applicable loan contract and pre-contractual disclosure documents before making a decision about whether to apply for this product.

2. Product Description and Key Attributes

The Float Business Growth Loan is a business purpose credit product issued by Float under Australian Credit Licence 561664. This is not a consumer credit product regulated under the National Consumer Credit Protection Act 2009 (Cth). It is available only for genuine business purposes, confirmed by a signed business purpose declaration.

3. Target Market

3.1 Description of Target Market

This product has been designed for, and is likely to be consistent with the likely objectives, financial situation, and needs of, business borrowers in the target market described below.

3.1.1 Borrower Objectives

The Float Business Growth Loan is designed for business borrowers whose objectives include:

• Investing in equipment, vehicles, or materials needed to expand capacity or take on larger contracts
• Funding working capital to support business growth, seasonal inventory, or a new revenue line
• Completing a fit-out, renovation, or upgrade that will increase the productive capacity of the business
• Bridging a significant cash flow gap where the business has committed revenue that has not yet been received

3.1.2 Positive Target Market

This product is likely to be appropriate for business borrowers who meet all of the following criteria:

• Sole traders, partnerships, trusts, or companies operating a genuine business in Australia with an active ABN or ACN registered for at least 12 months
• Businesses with minimum monthly revenue of $8,000 ($96,000 a year), verified against business transaction data
• Borrowers who have a demonstrated capacity to service the loan repayments from business income without putting the business under financial pressure
• Borrowers who require credit for a genuine, stated business purpose and can confirm this by signing a business purpose declaration
• Borrowers who may be underserved by traditional bank lending, including businesses with non-standard revenue patterns, trades and services operators, and businesses without two years of audited financials
• Borrowers with a satisfactory credit history, assessed in context

3.1.3 Negative Target Market

This product is unlikely to be appropriate for business borrowers who meet any of the following criteria:

• Individuals seeking credit for personal, household, or domestic purposes (this is a business credit product only)
• Businesses that do not have a regular or reasonably predictable source of revenue
• Businesses that are insolvent, in administration, or subject to a winding-up order
• Borrowers who are currently bankrupt or subject to a debt agreement under Part IX or Part X of the Bankruptcy Act 1966 (Cth)
• Businesses for whom the proposed repayments would put the business under significant financial pressure or jeopardise its ability to meet existing obligations
• Businesses that require less than $25,001 (these businesses should be assessed for Float Business Starter)
• Businesses that require more than $50,000 (these businesses should be assessed for Float Business Accelerate)
• Borrowers who cannot provide a genuine business purpose for the loan
• Businesses that have been trading for less than 12 months and cannot demonstrate consistent revenue

3.1.4 Borrowers for Whom this Product is Clearly Not Suitable

This product must not be distributed to:

• Individuals seeking credit for personal, domestic, or household purposes
• Individuals under 18 years of age
• Businesses with no assessable revenue
• Businesses seeking credit for speculative or investment purposes unrelated to the operation of the business
• Businesses in severe financial distress where any additional credit obligation would worsen their position

3.2 How the Product’s Key Attributes Are Consistent with the Target Market

The Float Business Growth Loan’s key attributes are consistent with the target market because:

• The loan amounts ($25,001 to $50,000) and terms (12 to 36 months) are sized for the equipment purchases, fit-outs, and working capital needs of established small businesses.
• The risk-tiered interest rate means borrowers with stronger trading history and cash flow pay lower rates, while borrowers with thinner profiles still have access to credit at rates that reflect the risk.
• The absence of a monthly account fee and early repayment penalty supports businesses with variable cash flow who may want to pay down the loan faster when revenue allows.
• The requirement for a signed business purpose declaration and Float's verification of that purpose protects both the borrower and Float from mixed-purpose lending.
• The personal or director guarantee requirement aligns the interests of the business owner with the credit obligation.
• The fully digital application and servicing channel reflects the preferences of the underserved business cohorts in the target market.

4. Distribution Conditions and Restrictions

The following conditions and restrictions apply to the distribution of the Float Business Growth Loan.

4.1 Distribution Conditions

4.2 Distribution Channels

The Float Business Growth Loan may be distributed through the following channels only:

• Float's website via the direct online application process
• Float's installable web app

Distribution is limited to Float’s direct digital channels.

5. Review Triggers and Review Period

5.1 Review Triggers

This TMD will be reviewed if any of the following events or circumstances occur:

• A significant dealing in the product that is not consistent with this TMD
• A significant number of complaints received from borrowers in relation to this product
• Material changes to applicable legislation, including any legislative change that would bring business credit within the scope of the National Credit Code or the DDO regime
• A determination or finding by ASIC, AFCA, or a court that indicates the product (or a materially similar product) is causing borrower detriment
• A material change to the product's terms, pricing, fees, or eligibility criteria
• Material changes to the economic environment or credit market conditions that may affect the suitability of this product for the target market
• A material change to Float's credit assessment methodology or data sources used in underwriting decisions
• Any event or circumstance that would reasonably suggest this TMD is no longer appropriate for the product
• A material change in the proportion of applications where the stated business purpose cannot be verified
• Any regulatory guidance from ASIC regarding the application of DDO to business credit products

5.2 Review Period

In addition to the review triggers specified above, this TMD will be reviewed:

• Initial review: within 12 months of the date of issue.
• Ongoing reviews: at intervals not exceeding 12 months from the date of each preceding review.
• Ad hoc review: promptly upon the occurrence of any review trigger described in section 5.1.

Where a review trigger occurs, Float will review this TMD as soon as practicable. If the review is not complete within 10 business days after Float first knew of the trigger, Float will stop distributing this product until the review is complete and, if this TMD is no longer appropriate, a new TMD has been made.

6. Reporting Requirements

6.1 Reporting Obligations

Float monitors the following data on an ongoing basis to assess whether this product is being distributed consistently with this TMD:

6.2 Float’s Monitoring

In addition to the reporting above, Float monitors the following data on an ongoing basis:

• Application approval rates and decline reasons
• Borrower default rates and hardship application rates within the first 90 days of the contract
• Complaints data, including trends in complaint type and volume
• Internal compliance audit findings relating to the product or its distribution
• Data from business transaction records provided by applicants, including indicators of financial stress at the point of application
• The proportion of loans where the business purpose declaration is inconsistent with the actual use of funds (where this can be determined)

7. Approval and Governance

This TMD is published by Float as part of its voluntary adoption of the design and distribution obligations framework for business credit products. It does not constitute financial product advice.

Document reference: TMD-BIZ-GROWTH-1.0-08October2026