Resimac launches new lending division

The secured business loan, which is secured against residential property, gives commercial borrowers an opportunity to consolidate their loans and ATO debts at a much lower interest rate compared to unsecured loans, helping them free up cash flow for their business.

Borrowers with a credit score over 600 can access funds of between $150,000 and $3.5 million, on loan terms up to 60 months (on principal and interest repayments). The loan-to-value ratio goes up to 70 per cent and rates start from 10.5 per cent per annum.

According to the group, the offering was developed after brokers told the lender that they wanted the flexibility of longer-term business loans and aims to help commercial borrowers save money in a tighter economic environment.

Nick Loan, the former director of GAP Business Loans, has been brought in to head up the arm as national distribution manager for secured business loans.

Mr Loan has more than 30 years of experience in commercial, industrial, and retail property investment, including experience in property transactions and funds management.

Speaking of the new secured business loan, Mr Loan said: “Challenging market conditions have seen many businesses take up different types of loans to get by, including unsecured loans, personal/business loans, and car finance, with interest rates that can run as high as 24 per cent per annum,” adding that by offering a secured business loan, businesses could access a much lower rate thereby freeing up cash flow for their business.

“We spoke to a lot of brokers when developing this product and the overriding consensus was clear. Brokers want to do business with a lender that offers certainty, consistency, quick decisioning speed, fast settlement, and the credibility of a trusted brand. These are all things that Resimac brings to the table.”

The lender has said it can provide an indicative loan approval in under 48 hours with settlement within two weeks.

“Importantly, we’re not just ticking boxes when it comes to credit assessment. Whether it falls within our credit policy or not, we always look for ways to try and make the deal work,” he continued.

Mr Loan added he was “excited to join Resimac at a time when secured business loans are an increasingly attractive and relevant solution for commercial borrowers”.

“There’s a massive opportunity here for brokers to grow their business and diversify into commercial finance if they’re not in this space already,” he said.

The move came as Resimac continues to build its commercial and asset finance offering, following its move to take a controlling stake in Sonder.

[Related: Resimac adds 3 to asset finance team]