Finstro Funding Update

Approximately 40% of your client base would be comprised of self-employed clients!

82% of small businesses fail due to cash flow management. Are you taking the next steps with your small business clients talking about their cash flow needs? In today's world, this simple question could mean the difference between survival and the recovery actions needed to reopen or continue. Do you create deeper relationships by discussing their stock position or supplier payments? Do you understand the best use between a term or a line of credit facility? At Finstro, this is their core! It is where they excel.

On average, 1/3rd of small businesses have their cash flow tied up in outstanding invoices. This is called the lag effect. Whether it be awaiting payment from their debtors or even fully funding their supplier invoices, it all places a strain or lag effect on their daily cash reserves. In effect, this is operating (or living) from pay to pay! Does this impact their need to meet unexpected expenses?

Many businesses operate very similar to consumers who live pay to pay. They experience the peaks & troughs within the balance of their bank accounts. The self-employed or SME market has quite a real need to balance out their cash on hand, flatten or balance the curve.

Finstro is a trade-focused provider of trade credit & payment solutions. Business owners are placing their personal liability at risk through reliance on personal credit cards to supplement. By turning business turnover into business growth, single invoice funding provides flexibility across a business's daily, weekly & monthly cash movements.

A FINSTRO line of credit with three (3) sub-options provides that flexibility, which can be used repeatedly under an evergreen facility. Why would your client repay across an extended-term under monthly instalments when you can get in and get out, all whilst retaining an ongoing facility?

Trade Supplier Payments

o Easily upload supplier invoices for payment
o 100% of the invoice paid to suppliers
o 6-month repayment terms
o No penalties for early payout

Debtor Receivables

o Fund 80% against invoiced amount. Why wait for your payment!
o Repay by balloon repayment upon invoice collection
o 90-days terms
o No penalties for early payout

Your Cash Option

o Draw up to 100% of monthly turnover in cash for those unexpected expenses
o Simply transfer funds to your nominated account
o Amortised over a 12-month weekly, fortnightly, or monthly instalment plan
o Re-Draw of available funds permitted
o No penalties for early payout

Application Criteria

o Active ABN & GST Registration 6 months
o Minimum monthly turnover $6,250.00
o Minimum 6 months trading history
o No asset back securities required

Your Benefits

o Quick & easy referral process
o Approval within 24 hours
o Fully supported via your Channel Manager and/or your Internal Sales BDM
o Recurring settlement commissions (upfronts) at time of any invoice funding
o Ramped trail payments paid monthly
o Customer satisfaction

For any questions, please reach out to your BDM.

Lumi Lockdown - Broker Bonus

Despite the rising COVID-19 numbers, at Lumi, it is Business As Usual, and they have continued to write loans across all industries in July. This comes after a record month for them in June, which would not have been possible without you!

Brokers are often curious about how Lumi clients are using their funds. In recent times they have provided finance for the following:

  • The acquisition of a competitor
  • An ongoing working capital facility to bridge the gaps between client payment terms
  • Clearing ATO debt
  • Facilitating an office move (general equipment and labour costs)
  • Financing the balloon payment due on a piece of equipment

During June and July, Lumi has also seen an increased demand for larger loans. Feel free to contact Lumi if your client is seeking $30K or $300K, and they can help provide an attractive solution for small and not-so-small businesses alike. If you're ready to submit a deal, you can do it all online in less than 5 minutes via your Partner Portal.

Broker Bonus

Lumi has been relatively unaffected by this round of COVID and has continued to fund deals across all industries throughout July. As an initiative to give back to their broker partners for supporting them, they are running the following promotion*:

Refer any client/deal to Lumi via the broker portal from 27 July 2021 - 31 August 2021 and receive a $50 Westfield voucher. Should your application be approved, this amount will increase to $150, and if funded, you are entitled to the usual broker commission.

So how to get started and take advantage of this offer?

  • Get accredited via our partner portal here.
  • Call your BDM to workshop the deal.
  • Enter your client details under "create lead" in the broker portal.
  • Submit the deal via the broker portal.

Please reach out to your BDM to discuss any applications you have on your desk, or for any other questions!

ANZ Support

In line with the announcement from the Australian Banking Association last Thursday evening, ANZ is extending support for small business and home loan customers affected by the ongoing COVID-19 lockdowns across Australia. From the start of this pandemic, it's always been their priority to support all of their customers doing it tough and offer a range of support measures for financial hardship.

ANZ will continue to support Retail customers affected by continuing COVID-19 lockdowns or those recovering from recent lockdowns with an enhanced array of support measures. This could include temporarily reducing repayments, restructuring home loan debt or switching to a fixed-rate loan. Specific eligibility criteria will apply.

Customers who are identified as suffering financial hardship for any reason (does not specifically have to be as a result of the lockdowns) should be directed to speak to the ANZ Customer Connect team for further support.

ANZ's message to customers is that they stand ready to support them.

What you need to do:

For customers seeking financial support, please direct customers to:

  • Complete an online assistance application through

  • They should allow 30-45 minutes to complete the assistance application and have their personal, account, income and expenditure details available.

  • Once the application is completed, the customer will be contacted within 5-10 business days by a member of the ANZs Customer Connect team to discuss any options that we may be able to offer.

More Information:

Business Bank Customers

In addition to existing business support, ANZ will help small businesses with:

  • Business loan repayment deferrals (Note: updated eligibility criteria and processes apply);
  • Merchant terminal rental fee refunds waived for up to three months; and
  • Waiving of break fees and notice periods on Term Deposit and Farm Management Deposit accounts.

If you are contacted by a business customer, please refer them to their ANZ Business Banker.

For any other questions, please reach out to your BDM.

Libery Update

At Liberty, their range of business lending solutions are designed to help more customers get in control of their finances. Here's how they recently helped an SME expand their business:

Customer story:

A customer who is an owner/operator of a gym business was seeking funds to purchase a second gym for $660k.

Liberty solution:

Liberty provided a free-thinking approach to deliver a creative solution, taking into account the customer's ability to demonstrate strong servicing based on existing gym and vendor financials and a debt-service coverage ratio of 1.62x.

The funds totalling $660k included a combination of a $130k contribution from the customer, a family gift of $110k, coupled with a Liberty Business Care loan of $248k and a secured Liberty Mint facility of $172k.

To discuss a scenario or for support lodging, an application, contact your Liberty BDM or our Introducer Hotline on 13 11 33.