Bluestone Mortgages has announced an enhanced product range aimed at providing funding to self-employed and small business customers. With this expanded range of options, the lender says brokers will be able to assist more clients more often.
The non-bank has unveiled four products with fixed standard variable rates as well as a line of credit option. Additional features include split loan capability, levels of credit impairment, and up to 85% LVR.
For self-employed clients, the lender has said the redraw and line of credit functions are especially useful as this lets them credit surplus funds to their mortgage and then make use of those funds whenever necessary.
“We’re focusing our efforts on providing brokers with products and features designed to assist and benefit more customers and especially, this under-serviced part of the market,” said Royden D’Vaz, head of sales & marketing at Bluestone Mortgages.
“We understand the challenges that brokers and their self-employed clients face when trying to obtain a mortgage that will ultimately help to fund their business.”
Speaking to Australian Broker
, D’Vaz said that the 2.4 million self-employed people are rarely heard in government, public policy or the media while big business further drowned out their voices.
“There’s not much out there for self-employed and small business owners to fund the growth of their business,” he said. “Most banks get nervous when someone approaches them saying, ‘I need more funds’. They think it’s a cash flow issue.”
The new line of products enables brokers to help clients tap into this need by allowing them to move money in and out as they need it.
“While there is no change to our commission structure, this adds flexibility to our products,” D’Vaz said. “It gives a bells and whistles enhancement to the products that we have.”
Amongst small businesses, housing equity came after bank credit as the second most common form of finance used, according to the RBA
’s Small Business Conditions and Finance Report
released in August 2015.
With house prices rising around the country, there is an increased appetite for SME home owners to tap into this equity to expand and grow their businesses.
“We want to give more of Australia’s small businesses, access to funding at a reasonable cost, so we are developing a suite of lending solutions specifically targeted to this market by giving them a helping hand when others won’t,” said D’Vaz.
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