Crisis Funding for Businesses

Key product/service features:
HomeSec Business Finance funds short-term business loans (sometimes known as caveat loans or bridging loans), and we fund 12-month second mortgages. Both loan types can settle in as little as 24 hours from the time of application, and we secure our loans against real estate anywhere in Australia or New Zealand. One of the reasons why we are so fast is because we don’t do valuations on the security property.

Our Short Term Business Loans have a minimum term of just one month, and interest is capitalised for the loan term… meaning no payments at all during the loan term and therefore no need to demonstrate serviceability. This product is great for new business start-ups and clients with seasonal or erratic cashflow.

Our 12-monthsecond mortgage product is generally a little cheaper, and is simply an interest-only business loan, where interest is paid monthly for the loan term. Plus with HomeSec, there are no fees to extend the loan terms. You simply just continue to service the monthly interest.

How easy/difficult is it to introduce into the client conversation? 
Very easy! It’s all about identifying the client’s need, and the urgency of that need.  The product then sells itself.  The most important thing is to keep the conversation simple.  Don’t get caught up on interest rates etc. Just submit your lead to us, let us assess and if conditionally approved you will have the approval letter within a maximum of two business hours. From there you leave it entirely up to the client. Business clients are commercial in nature so they will do their own cost-benefit analysis, where if the benefit of getting the funds in 24 hours outweighs the cost, then they go for it. 

Many of our savvy and successful brokers have told us that when they get push back on the costs, they simply ask, “Do you want a rate, or do you want a solution”. They find that the most business clients start to realise they aren’t going to get a two-month business loan that settles in 24 hours at home loan interest rates.

Product lead time to settlement? 
24 hours from the time of application. HomeSec Business Finance is a little different to most other lenders where we don’t do property valuations, we don’t require tax returns or other financials, and keep things light and simple.

Which clients is it suitable for? 
Any self-employed business owner or small to medium enterprise. We will even fund start-ups and we don’t have any excluded industries. Our simple message is… As long as there is a genuine business purpose and enough equity in a piece of real estate, WE WILL FUND YOU!

How much can brokers make? 
Brokers can charge up to 4 per cent of the gross loan amount, and it is paid on the same day the loan settles. On a $500,000 loan, that’s $20,000 paid to the broker. How good is that! Plus with HomeSec, there are no clawbacks, and you don’t need a mandate.

Do they need to upskill/educate or is this a pure referral model? 
To be honest, it can be a pure referral model. We would prefer to do all the work for the broker and pay them their brokerage at settlement. Whilst our loans are very very simple, some brokers don’t feel confident in selling the rate or the structure as it’s a bit removed from their usual home loan pitch. As we have been lending for almost 16 years, no one can explain these loans to a client better than us. However, we respect the fact that many of our experienced brokers have strong relationships with their clients and they are very experienced with our product and they prefer to handle the transaction direct with their client. We are happy to work either way. 

Written by HomeSec Business Finance

Last Updated: 14 March 2022

Published: 08 April 2020