Rate Money is stepping up its game in an increasingly competitive lending market.
The non-bank lender is rolling out a new offer designed to give self-employed borrowers a break, as an increasing number of small businesses across Australia continue to battle rising operational costs.
Starting Monday, 30 June, Rate Money is reducing rates across its "Evolve Easy Doc" range, with new rates starting from 6.64% p.a.
"We're turning up the heat," said Ryan Gair, co-founder and chief executive officer of Rate Money.
The "Easy Doc One Year" product will also have reductions, now starting at just 6.09% p.a. In addition, Rate Money has also removed interest-only loading on investment loans, offering additional solutions for those looking to expand their portfolios without extra cost burdens, the company said. Rate Money — which was founded in 2019 by Glenn Maynard, Luke Sheales and Gair — revealed more than $10 billion in loans earlier this year.
These changes come as Australia’s lending market grows more competitive — and as SMEs face mounting financial pressure. A recent Commonwealth Bank (CBA) study revealed that 89% of small to medium businesses have seen rising costs over the past year, driven largely by utility bills (66%), supplier expenses (47%), and marketing outlays (29%). On average, business costs have jumped 10%, with 40% reporting hikes beyond that.
At the same time, borrowers and investors are feeling the squeeze from a perfect storm of rising living costs, surging property prices, climbing rents, a tightening housing supply, and ongoing global uncertainty.
Meanwhile, a growing number of Australians are choosing to work for themselves — roughly 2 million, according to the World Bank — while at the same time many traditional banks remain hesitant to lend to those without a consistent paycheck. This is fueling the need for flexible lending products, such as self-employed financing.
“The recent reduction in interest rates has been welcomed with both arms by our small business customers," said Rebecca Warren, executive general manager, small business banking at CBA. "But running a business today continues to be tough, as consumer spending recovery is taking longer than anticipated and the macro-economic landscape continues to bring uncertainty.
Still, a hotter lending market could mean better deals for savvy borrowers and investors. As lenders compete more aggressively for market share, those ready to move could lock in more flexible terms, sharper rates or added perks that weren’t on the table just months ago.
Sydney-headquartered Rate Money specializes in loans for self-employed individuals. The firm said it plans to grow its books to $13 billion and open another 50 locations by year end.
