A private lender has adjusted a range of features across its product offering to better cater to the unique needs of business borrowers which have been formed in the pandemic era.
According to director Tony Barbone, the new range of solutions from specialist commercial mortgage lender Private Mortgages Australia (PMA) came as a result of COVID-19 pushing the “role of private lenders to evolve”, with the updated policy shaped by the increase in borrower demand for business cashflow and property development or construction.
“There are certain scenarios when a private lender is going to be the best option for a borrower, so we want to make sure we’re delivering in these key areas to give our customers a solution that suits their needs,” Barbone said.
The director also stressed the crucial importance of brokers in helping customers to understand the full range of options available to them.
"Brokers play an extremely important role in helping borrowers to access private lending solutions –and this is even more apparent during the coronavirus period,” said Barbone.
"With the stress caused by lockdowns and restrictions, many borrowers are confused about which way to turn when they need money for cashflow or to complete a project, with many feeling that there isn't an option for them. It's great that brokers are able to enlighten them about the possibility of a private loan when they aren't able to secure funding elsewhere."
In a survey recently conducted by PMA, 94% of brokers indicated they expect private lending to become more prevalent due to the stricter lending policies at banks.
“The financial needs of an SME during a crisis are varied, but generally it is the necessity for short-term support until things get back to normal,” said Barbone.
“Private lenders have always had a focus on business lending and supporting small businesses and this is no different during this period of disruption.
“While the Coronavirus crisis has created less than ideal circumstances for businesses and developers there are ways to keep operations going during these tough times.”