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The Adviser

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Mortgage and finance brokers will now have the chance to offer their clients an efficient and convenient way to secure short-term finance using their freehold assets.

A new online lender that offers Australians an efficient and convenient way to secure short-term finance has entered the lending market.

Munibox provides loans to individuals and businesses, using non-real estate assets as security with no credit checks, employment checks or financials required.

Munibox gives broker clients the ability to leverage their higher value assets – such as cars, trucks, equipment, caravans and boats as security against loans of $5,000 or more for up to three months.

Sales and Operations Manager Martin Leedham explains “Munibox fills a gap in Australia’s short-term finance market by offering a secure, online process that gives customers a fast, efficient and transparent method of leveraging their assets for a loan.

“Munibox aims to fill this gap and establish itself as Australia’s unique, leading online platform for asset lending, Mr Leedham said.

Broker clients are able to borrow up to 70 percent of the value of their asset as valued by Munibox, including interest.

Assets are then securely stored in one of Munibox’s fully-insured and secure facilities located nationwide, for the period of the loan.

When the borrower wishes to repay the loan, including interest and costs, or upon maturity of the three-month period they can then reclaim their asset. Alternatively, the client does not repay the loan and forfeits the asset to Munibox for sale, with any surplus funds returned to the client.

One of the major reasons client’s approach Munibox for finance is for the speed and ease of the transaction, with approvals met within 24 hours in most instances; and the fact there is no material credit risk, making it an attractive alternative to approaching traditional lenders.

“Munibox does not carry out credit or employment checks, or request to see financials. Background checks are completed to verify the identity of the client, and to ensure the asset is owned outright and is therefore eligible as collateral for the loan.

 “A typical Munibox customer is someone who has a short-term cash requirement or irregular cash flows, such a self-employed or business owners. A Munibox loan provides them with the means to pursue an opportunity, or resolve any short-term financial road blocks quickly.

Leedham says that most clients use assets that spend a significant amount of time in storage or idle as their collateral, such as heavy machinery, secondary or prestige vehicles and caravans.

“Our clients tend to have ownership of several higher value assets, whether they be for personal or business uses. Particularly with assets used seasonally or very occasionally, our client can unlock the value of that asset to access funds.

Mr Leedham said Munibox was committed to transparency.

“All transaction costs are fully disclosed on our website to ensure there are no surprises. Each customer knows the process and the total cost of taking out the loan in advance.

“And unlike other lenders, Munibox only lends against an unencumbered asset, not against a person’s income.”

For more information and product specifications, please visit www.munibox.com.au/broker