SME lending enquiries are on the rise

There has been a 56% increase in loan enquiries coming through brokers for SME lending in the past 6 months. Prospa has seen a three-fold increase in lead enquiries since the start of May, and this is expected to continue on a steep upward trajectory coming into June.

Don't miss out on this peak period during the EOFY to engage with any and all self-employed and SME clients. Prospa business loans can be utilised for any worthwhile business purpose, and this includes helping SMEs grow, survive or even paying out ATO debt.

Two questions you could ask your self-employed clients to discover opportunities -

  • Do you have any ATO debt, outstanding invoices, challenges or opportunities coming into the end of the financial year where you may require some help with cash flow?
  • Do you have a SafetyNet facility in place at your business such as a line of credit should you need working capital fast?

Prospa Minimum Qualifying Criteria:

  • Min 6 months trading and income
  • Min $6k monthly turnover (they lend approx. 100% - 200% of this figure ** at times up to 300%)
  • Must be PR or Aus Citizen

Prospa has some incredible white label marketing collateral complimentary to all their members, so no need to reinvent the wheel. Just reach out to your Prospa BDM for more information, or to lock in a one on one discovery session on how to find these opportunities within your database.

If you have any questions, refer to your Vow Financial BDM.

Upcoming Webinars Delivered by Head Office

We encourage our network to register for our Head Office webinars to ensure that you stay up to date on software and compliance topics.

Attending these webinars will automatically add CPD hours against your profile on the Professional Platform.

Click on the below links to register:

  1. Compliance FAQs scheduled for 16 June 2022
  2. Vownet YQA session scheduled for 27 June 2022

Hope to see you there.

Liberty Residential Loans Update

Liberty is all hands on deck this tax season to help more customers get financial.

With fast turnaround times and competitive rates, their free-thinking consolidation loans can make it easier to tackle ATO debt.

Read more about it here.

If you have any questions, refer to your Vow Financial BDM.

Going places with Banjo Loans

Banjo Loans has recently helped an accounting business obtain capital and cash flow funds they needed to be able to service the uplift in business demand.

See snapshot below of how they helped the business.

A bit of background

They are a dynamic accounting and financial services firm, delivering solutions to people and businesses for over 50 years.

How did Banjo Loans help them move forward?

  • With the busy EOFY period looming, Banjo provided control, flexibility and peace of mind with a working capital loan to manage their cash flow funding needs.
  • $750,000 over a 12-month period was provided within 3 days.

For any questions please reach out to your BDM.

Suncorp increases terms and LVRs in SME lending

New approach to SME lending

Suncorp is excited to share some recent changes they have made to their SME lending policy, which has put them in a stronger position to support brokers with their small business customers' lending needs.

They have also reduced the documentation required to submit an application, which makes them easier to do business with.

They have changed to a tiered pricing structure, which offers a rate discount for lower LVRs whilst remaining competitive at higher LVRs. This allows brokers to support different leveraging positions of their clients to suit their working capital requirements.

They are also extending their current special offer on their flagship Small Business Essentials product:

Suncorp SME training sessions

Due to the positive feedback on their new policy from their broker partners, they have organised Suncorp information sessions for their brokers in the coming weeks.

If you have any questions, refer to your Vow Financial BDM.

VOW Financial Moneytech JUNE SPECIAL

Moneytech would like to support commercial brokers to entertain the idea of Moneytech with their self-employed clients as EOFY approaches.

Additionally, the time frame of their Lo Doc LOC at 7.85%pa which is under The Federal Government's Loan Recovery Scheme is expiring June 30, 2022.

The team at Moneytech have put together a special for VOW brokers to take advantage of EOFY and SMEG, where they will waive the $795 application fee for all new loans submitted within the month of June with their Lo Doc LOC & Business Term Loan.

To find out more, click here.

For any questions please reach out to your BDM.

Brighten Lender update

Brighten Interest Rates Decision - New Business

On Tuesday, the Reserve Bank of Australia (RBA) raised the official cash rate by 0.50%. In response to the cash rate decision, Brighten has made the following changes to Brighten home loan products, effective 9th June 2022.

1. Full Doc
The following interest rates are now applicable to new Brighten Empower Prime and Brighten Empower home loan applications.

2. Alt Doc
The following interest rates are now applicable to new Brighten Boss Prime and Brighten Boss home loan applications.

3. Construction Loans
The following interest rates are now applicable to new Brighten Easy Builder - Full Doc, Brighten Easy Builder - Alt Doc and Brighten Easy Builder - Non-Resident home loan applications.

4. Non-Resident Loans
The following interest rates are now applicable to new Brighten Evergreen home loan applications.

5. Brighten Premium (188B/C Visa Holders)
The following interest rates are now applicable to new Brighten Premium home loan applications.

^Of the loan amount. #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.

If you have any questions, refer to your Vow Financial BDM.

Solutions for your self-employed clients through Resi

Resi makes it easier for you to look after more of your self-employed clients and their individual needs.

Through their unique product range consisting of: Essentials Options, Select, Renew or Agility a solution is sure to be found.

Where a self-employed applicant has not completed his current tax returns, alternative means of considering income can be considered. These include:

ALT DOC Options: Where current tax returns have not been completed, serviceability assessment can be completed by using one of the following income verifications: Accountants Letter, 6 months BAS or Business Bank Statements.

Directors Salary - Many self-employed people pay themselves a wage, which is often more than enough to cover their home loan repayments. Resi provides a solution to use this income without sending through company financials.

Or alternatively:

Most Recent Financials - whether it's only 1 year, 2 years or the most recent tax return supported by the most recent 6 months BAS - this full doc option through a prime solution should be one to consider.

For more information click here or please contact broker support or your BDM.