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Specialist lender Bluestone Mortgages has seen a 50 per cent increase in volumes of its Business Easy loan product over the 12 months to February.
The company said the surge correlates with the consistent growth of the self-employed sector and actively supports individuals, companies and trusts who have been trading for less than 12 months.
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“Business Easy is highly appealing to start-ups and self-employed applicants as it only requires a three-month ABN to secure a loan, versus the traditional 24-month requirement,” Bluestone’s national head of sales and marketing, Royden D’Vaz, said.
“In real terms, this means that a previously disadvantaged group has a financial solution that supports their requirements and doesn’t discriminate based on trading history – hence why the product uptake is significant, and is expected to increase as market demand increases,” he said.
One broker who recently used the product to help her clients is Kristina Spencer, of Finance Solutions Central in Queensland. She says the Business Easy loan helped the Pinzon-Leal family, who had emigrated from Venezuela, buy their property.
“In this situation, Neferson Pinzon-Leal had a well-established family business overseas, but only had his commercial lighting franchise operational in Australia for four months, with significant trading income in those four months. This precluded them from being able to secure finance through traditional lenders for his property purchase in Brisbane,” Ms Spencer said.
“Bluestone was the only lender with a product that only requires three months’ ABN to be eligible for the loan. This critical feature enabled the Pinzon-Leal family to purchase their property,” she said.
“We were delighted to see the family move into the townhouse a few weeks ago, and gave them a Moët house warming hamper to celebrate their new home.”
Bluestone’s Mr D’Vaz said the Business Easy product is highly flexible and designed to provide finance to a growing market base of self-employed borrowers.
“The recent line of credit facility, Part 9 and 10 impairment adjustments and the ability to fix rates on all or a portion of the loan, help extend Business Easy’s full suite of features and benefits. The line of credit facility benefits day-to-day operations by alleviating immediate cash-flow issues, he said.
“Without the need for lenders mortgage insurance, the borrower doesn’t need to meet the lending guidelines of LMI providers, and adjusting the way we view borrowers in a Part 9 or Part 10 agreement means greater flexibility and access to quicker, more customised financial solutions designed to support the sector.”
[Related: SME lender sees high levels of client attrition]
