Brokerage launches digital SMSF lending platform

Named “SMSFr8”, the platform is designed to provide SMSF borrowers, in both the commercial and residential market, with the “best interest rates”, instant rate assessments and avenues for funding in a way that’s both user-friendly and transparent. 

Blue Crane Capital has said this is partly responsible through its algorithm, which utilises collected data derived from five years of arranging financing solutions which is subsequently compared with a user’s responses to a “series of questions regarding the type of loan and the parameters around their needs”. 

Further, Baz Brown, the director of SMSFr8 developer Incapsica, said the minimal design and execution of the website is purposed to allow a user to “focus on each question at hand”. 

“Meanwhile, we needed a backend that did the hard work: calculating each answer into the equation, but also allowing for formulations to be adjusted based on industry trends and fluctuations,” he said. 

“Another consideration was mobile. We wanted SMSFr8 to be responsive and easily accessible – in the pockets of borrowers everywhere.”

Blue Crane Capital managing director Chris Hall said the creation of SMSFr8 comes following a recent rise of popularity in the SMSF sector. 

According to the Australian Taxation Office, in the five years to 30 June 2020, the number of SMSFs in Australia grew by 7 per cent, while SMSF assets grew by 23 per cent. 

The ATO also stated that, as of this same date, there were 593,000 SMSFs in Australia holding $733 billion in total assets, making up 26 per cent of the country’s super assets. 

“We built SMSFr8 to empower SMSF borrowers and deliver enhanced transparency, particularly around more complex commercial lending. Now, borrowers can instantly assess their rate to ensure it’s competitive,” said Mr Hall. 

Mr Hall added that Bluestone Capital has seen a “significant uptake in commercial SMSF lending” since the amendment to the Superannuation Industry (Supervision) Act increased the number of trustees in an SMSF from four to six.

This amendment passed both houses on 17 June 2021. 

According to Mr Hall, business owners are now “leveraging tax incentives and opting to buy their commercial premises and continue to rent it from their SMSF vehicle”. 

Mr Hall added that another intention for SMSFr8 was a growing rate of non-banks in the SMSF lending space.

“Unless SMSFs are considering the complete lender market, they run the risk of paying too much interest – SMSFr8 is a disruptor here and will deliver complete rate transparency to SMSF borrowers,” Mr Hall said. 

“Regardless of what stage borrowers are at in the lending process – whether it’s a quick sanity check on an existing rate or they are curious to find the best interest rate available – SMSFr8 delivers peace of mind and greater bargaining power.”

The announcement comes after November’s confirmation of Stamford Capital Australia launching its own free-to-use online platform for commercial finance. 

Named comr8, the platform was also developed by Incapsica.

[Related: Stamford Capital unveils digital CRE marketplace]