Taking the leap into commercial lending

Q. Why is commercial lending an important growth area?

At RedZed, our commitment lies in empowering self-employed individuals on their financial journey, whether they’re seeking residential or commercial solutions. That’s why having a strong commercial lending offering is essential: we take broker and market feedback seriously and continue refining our range of commercial products.

For brokers working with self-employed clients, adding commercial lending to your service offering can strengthen your client relationships. It positions you as a one-stop finance expert, encouraging repeat business as your clients’ needs evolve. Additionally, with many investors both within and outside of SMSFs now exploring commercial real estate for its attractive rental yields and capital growth potential, brokers are well-placed to expand their customer base in this segment.

Q. What types of commercial loans are gaining traction at RedZed?

We’re seeing solid growth across our full commercial lending portfolio. Our loans typically support a range of purposes, from purchasing and refinancing to consolidating debt, covering tax obligations, or unlocking business equity. We’re also an excellent option for clients who’ve had financial setbacks and may not meet the criteria of mainstream lenders.

One notable trend has been a surge in demand for SMSF-related lending, driven by our competitive rates and cost structure. RedZed has experienced increased volumes in line with broader market trends, with SMSF loans now easier to source and write compared to previous years.

Short-term commercial lending is another active area for us. These loans are often used to address cash flow needs, fund inventory purchases, assist developers and investors in acquiring future sites, refinance existing obligations, or release equity from completed projects.

Q. What makes RedZed’s commercial loan options flexible?

At our core, we’re driven by practical solutions – focused on meeting real market needs with common-sense decisions. We offer alternative documentation (alt doc) for income verification, meaning borrowers can verify earnings using accountant letters, business activity statements, or bank statements, instead of traditional payslips or tax returns.

Our pricing is risk-based, considering creditworthiness, method of income verification, LVR, and the characteristics and location of the security property.

We’ve recently made several enhancements: commercial vacant land is now accepted as standalone security, our commercial SMSF rates have been reduced, and the application fee for our standard commercial range has been lowered.

Additionally, we offer a short-term property lending solution for deals that fall outside traditional lending criteria. This option doesn’t rely heavily on documented income, but instead focuses on the borrower’s profile, equity position, suitable collateral, and a clear repayment strategy. The loan must qualify as unregulated and offers a highly competitive, private lending-style solution, delivered by a known and trusted brand.