Many of Australia’s small businesses would collapse were it not for mortgage brokers, says a brokerage specialising in business finance.
According to the Managing Director of Auswise Finance Pty Ltd, Paul Boyd-Skinner, Australia’s small business sector is relying more and more on mortgage brokers for assistance in tough times because of a lack of support from their bank.
The Gold Coast-based brokerage is now trying to encourage SMEs to go in a different direction to traditional banking.
Some of the company’s clients are faced with selling their family home and breaking up their business due to a lack of finance options.
One manufacturing business client had been placed into a Deed of Company Arrangement as they owed the Australian Taxation Office $300,000 as well as money to creditors, all while an administrator was charging them $20,000 per month.
Boyd-Skinner, whose firm specialises in non-bank and alternative business finance, said he was able to help them by using equity in the business director’s home to obtain a short-term mortgage through a private lender.
After six months he was able to refinance the home and pay back the private lender through alternative finance solutions.
He said: “The business clients I deal with can be at any level from start up, established businesses to a business that looks like they are going under. Our aim is to provide SMEs with the peace of mind to focus on their day to day business activity without carrying the burden of finance related stress.
“Sometimes we need to think outside of the banking arena and segregate facilities to other non-bank specialist providers.”
