Assetline Capital: Recently settled - Short-term Non-resident

A borrower, residing in China, had contracted to purchase a luxury apartment in Sydney's CBD. The Contract of Sale was in the name of the borrower's Australian company which also had one Australian resident director.

The borrower had difficulty receiving funding from major banks as the majority of his income was derived from overseas so his broker came to us for a solution.

Assetline Capital provided a facility with an LVR of 65% to enable the borrower to settle on the property. The borrower's ID was confirmed by the office of an Australian firm of solicitors in Shanghai.

Within six months of the facility, the borrower repaid the loan from the proceeds of sale of another property.

Key deal terms

Term: 12 Months

Loan Amount: $4,810,000

Product Solution: Short-term Capital - Non-resident

LVR: 65%

Location: Sydney NSW

Lumi Launches The 1st Rate-Reducing Business Loan For Those Who Need It Most

To alleviate the pain of high interest rates and its impact on SMEs' cash flow and ability to borrow money, Lumi's new product feature Rate Ease allows businesses that are paying a higher interest rate, due to their financial circumstances, to gradually drop their rate every month and save thousands in interest, simply by making their repayments on time.

Key benefits of the new Lumi Rate Ease feature include:

-- Eligible customers can save up to 11% in interest.
-- Rates automatically decrease monthly after 4 consecutive payments for up to 12 months.
-- Partners can earn commissions of up to 6% on Lumi Business Loans with Rate Eased

Here's how Lumi Rate Ease works in action.

For a Lumi Business Loan of $100,000 on a 24 month-term and weekly repayments of $1,394, customers could save over $3K or 7% in interest.
Lumi is really committed to listen to their customers and partners' feedback and adapt their products and services to their ever-changing needs in order to offer industry leading lending solutions. Lumi Rate EaseTM is a prime example of that, says John Clifford, Head of Third Party at Lumi.
For our broker partners this means they can finally offer their higher APR paying clients a market-first business lending product that rewards them with a rate decrease just for keeping their payment promises.
In this challenging market of rising inflation and reduced consumer spending, Lumi Rate EaseTM could be the financial catalyst SMEs need to access much needed funding, which they would otherwise not get approved for or could simply not afford, concludes John Clifford.
Lumi's mission is to empower Australia's SMEs that are experiencing difficulty securing finance from traditional lenders, to overcome those financial barriers by offering fast, fair, and flexible funding solutions, thanks to their innovative lending technology.
"At Lumi we fund potential, and we believe in rewarding long-term relationships with both our customers and partners. We want them to thrive, not just survive, so we think it's only fair to reward good borrowing behaviour with a better price and that's exactly why we launched Lumi Rate EaseTM." Yanir Yakutiel Lumi Founder & CEO.

Brighten Lender Update - 1 Nov - Alt Doc Prime Promo

We are pleased to announce the extension of the Alt Doc Prime Risk Fee Waiver promotion. The Risk Fee will be waived for new Brighten Boss® Prime home loan applications submitted on or before 31 December 2023, approved and settled by 29 February 2024.

Brighten Boss® Prime - Key Product features:

  • Variable rate from 6.99% p.a.* (Comparison rate 7.07% p.a)
  • $0 Risk Fee up to 80%LVR^
  • One form of income documentation
  • Max. Loan Size $2m
  • 100% Redraw Offset Facility available
  • Fully assessed Pre-Approvals. 48 Hours SLA.

Get accredited today.

*Offer applies to new home loan application submitted on or before 31 December 2023, approved and settled by 29 February 2024. All applications are subject to our normal lending criteria and credit approval. Full terms and conditions will be included in our letter of offer. Fees and charges are payable on the loan product. *Available for new Brighten Boss® Prime loans (OO P&I) 70%LVR. Fees, charges and Terms and Conditions apply. # The comparison rate is based on a secured loan of $150,000 and a term of 25 years. WARNING : This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Recent market dynamics in private lending

There have been a few market factors driving the dynamics of private lending recently.

Higher Rates

While the prospect of higher rates once again seems more likely than not, the higher cost of funds and lending rates has raised concerns about valuations and softening yields. That's when a flexible private lender can come in handy. Sometimes enabling cross-collateralization of residential and commercial properties will greatly enhance LVRs. In this new normal of the rate environment, the certainty of effective financing rates is of utmost importance to ensure the successful achievement of borrowers' goals. The role of brokers is becoming even more important in assisting in navigating traps and pitfalls, especially in avoiding the excessive pass-on of increasing costs of funds or hidden fees and clauses.

Softening yields affect interest coverage

Softening yields have also caused some borrowers' commercial property portfolios with banks to fail their annual reviews or be unable to meet interest coverage requirements. This forces landlords to seek alternative bridging solutions before returning to banks when yields have improved. Therefore, it is imperative to seek an alternative lender that not only serves as a transitional solution but also enables eventual refinancing back into banks.

Challenges in Development Projects

Non-income-producing sites, with or without development approval (DA) or planning permits, are also causing stress among land bankers or developers, given the higher holding costs, including rates, stamp duty, and land tax. Private lending solutions become an ideal choice when fees and interest costs can be capitalized into the loan amount to smooth cash flow.

How Can N1 Help?

We can fund any property asset, except construction. We fund residential, commercial, industrial, residual stock, land with and without DA or planning permits--everything except construction. We have recently supported projects as small as $100k+ second mortgages, mid-sized first mortgage acquisitions of $5m+, and large multi-residential properties exceeding $25m. We offer flexible LVRs up to 75% on houses, 55% on development lands, and 65-70% on commercial properties.

Have a scenario?

Our friendly team can be contacted on 1300 001 118 or scenarios@n1holdings.com.au.

Update on SIMPLE+: Non-complex Business Lending Pathway up to $1.5million

Following enquiries around the recent enhancements to SIMPLE+ we want to clarify our position to assist brokers.

The SIMPLE+ pathway is eligible for commercial lending only and our credit policy requirements still apply.
Our underwriting standards and lending appetite have not changed.
The following underwriting standards apply:
LVRs for standard residential property (up to 80%) or non-specialised commercial property (up to 70%).
Funding above these levels is considered on a case-by-case basis and can be processed through SIMPLE+.

SIMPLE+ remains a pathway to support non-complex Small Business and SME Retail customers access business lending up to $1.5million.

The other enhancements recently made to the pathway continue to be available to eligible customers.

I have attached a copy of the communication that has been sent out to all our accredited broker network and would appreciate if you could please update your broker portal accordingly.

New Ynet/Vownet Resource - Referrals Quick Guide

Please download our newest resource via the Professional Platform for guidance around referrals.