Login
ISCOVER
The self-employed and SME owners are a significant, but potentially under-serviced market. Non-banks represent an ideal home for these customers. Here’s why
THE SELF-EMPLOYED and SME owners represent a significant segment in Australia’s labour landscape.
Self-employed workers make up 10 per cent of Australia’s workforce, while the latest Australian Bureau of Statistics stats report that there are over 2 million small and medium-sized enterprises in Australia.
Despite these big numbers, this segment is often overlooked by bank lenders that appear to prioritise traditional prime full doc applicants. Whilst some self-employed and SME owners may fit the traditional prime full doc niche, many more might not. As a result, brokers who default to bank lenders won’t have all the tools needed to service these customers in their best interests.
And with COVID, natural disasters and now inflation, the pool of self-employed and SME owner customers who don’t fit the traditional prime full doc mould may be growing even more.
Self-employed and SME owners are a great segment to consider focusing on. Business levels have now largely returned to pre-pandemic levels, and while they’re in a stronger financial position, they have new challenges they need your support with.
Non-banks like Resimac are an ideal solution for these clients. The composition of non-bank funding and experience working with these types of borrowers means we have the capability to offer competitively priced, flexible and innovative lending solutions.
Why non-banks like Resimac for SME owners and the self-employed?
Alternate forms of income verification: For full doc income verification, many lenders require two years of tax financials. Non-banks, on the other hand, can accept an accountant’s letter, business activity statements (BAS) or business bank statements for their alt doc products. This gives us a better understanding of the applicant’s more recent financials – important given the financials from the last two years wouldn’t necessarily provide an accurate picture of the business’ current performance.
Can be used for more than just purchase and refinance: Whilst many self-employed and SME owners want to buy or refinance residential property, non-banks offer mortgages that can be used for much more – particularly to grow their business. Uses could include consolidating business debt and as cash out, where the funds could be used to invest in their business.
Those with credit impairments welcomed: Non-banks, especially Resimac, understand life happens and offer products designed for those with credit impairments. At Resimac, having defaults, writs and summons under $2,000, paid over 12 months ago, or listed over 24 months ago won’t exclude an applicant from a full doc or prime product. Furthermore, we treat a credit event as any single event that caused related adverse credit bureau listings – so, where eligible, multiple listings can be consolidated under one event. For applicants who have significant events, even a current bankruptcy, there are competitive products available for a variety of purposes.
For those new to business: We know things move fast and opportunities don’t hang around for long. Even those who are relatively new to business can access credit to help them grow their business. Non-banks like Resimac offer products for those with as little as six months’ ABN registration.
Chris Paterson
general manager – distribution Resimac
JOIN THE DISCUSSION