Wave Money has entered the commercial lending space with the launch of Small Ticket Commercial, a product aimed at helping brokers identify and act on commercial finance opportunities within their existing residential client base.
The product covers metropolitan commercial properties for both owner-occupied and investment purchases, with loan amounts up to $1.3 million, lending of up to 80% LVR, and terms of up to 30 years. Assessment options span Full Doc, Alt Doc, and Lease Doc, and the product supports individuals, non-trading companies, and trusts.
Wave Money founder and managing director John Flavell (pictured) said many brokers are sitting on commercial opportunities without realising it.
"Many of the best commercial opportunities aren't coming from new clients, they're already sitting within a broker's existing database," Flavell said.
The development comes as brokers report a marked shift in investor appetite towards commercial property, following changes to negative gearing rules that now limit the benefit to new-build residential dwellings.
Wave Money’s product structure is designed to make new commercial exposure easier for borrowers to manage. Flavell said the extended loan term was designed to give borrowers more breathing room than typical commercial lending arrangements allow.
"By offering loan terms of up to 30 years, eligible borrowers can structure repayments over the longer term, improving cash flow and providing the confidence of a genuine 'set and forget' lending solution," he said.
Flavell added that pairing this with 80% LVR lending would let borrowers "leverage their capital more effectively, preserving cash for working capital, business growth or future investment opportunities."
Rather than positioning brokers as commercial lending specialists, Wave Money says its approach is built around collaboration, with scenarios workshopped directly alongside broker relationship managers and credit decision-makers.
Flavell said the goal was to simplify what has traditionally been seen as a more complex lending category.
"Commercial lending has traditionally been viewed as more complex than residential lending, so we've deliberately designed a solution that removes unnecessary complexity and gives brokers the confidence to have those conversations with their clients," he said.
The lender sees particular relevance for business owners looking to purchase premises they currently lease, as well as residential clients considering diversification into this asset class. Wave Money describes itself as a broker-exclusive non-bank lender focused on borrowers whose circumstances fall outside standard lending criteria.
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