Q&A with Shanta Lobo – Senior Relationship Manager

Shanta is Senior Relationship Manager LendingShanta Lobo recently joined Private Mortgages Australia in the role of Senior Relationship Manager. We thought we’d take the opportunity to find out from Shanta herself what’s involved in her role and how she can help clients with short-term business finance.

1. What made you decide to join PMA?

Having been a career banker, with a history of 20 years in commercial business banking, I wanted to try something different that also complemented my experience and expertise. The role with PMA was able to offer me just that. The Senior Relationship Manager role is challenging because it’s a new environment but maintains the basic functions of a commercial lender.

2. What are you looking forward to most in this role?

I’m looking forward to learning more about the private mortgage space and working out ways to help small-to-medium businesses with their borrowing needs. I’m also excited about establishing relationships with brokers and helping to educate them about the various ways we can help their clients.

3. What do you think the key benefits of working with a private lender are?

This is lending at a grass roots level. We’re helping clients based on their individual needs and providing realistic lending solutions. The best thing is that we’re able to think outside the square and structure deals very differently to banks in order to provide more practical options for businesses.

4. What do you bring specifically to the PMA team?

With my background in business banking I bring a thorough understanding of business requirements. I have extensive knowledge relating to interpreting financials, financial projections and security structure. I also have a great network of brokers and referrers that I’m looking forward to working with in the future.

5. What makes PMA different to other lenders?

PMA recently made the decision to increase our maximum LVR to 80%. Most private lenders will generally only lend 65% to 70% LVR, and a lot of the time this is based on a forced-sale valuation rather than the true value of the security property. We always take the true value of the security property without any tricks in order to give our borrowers a better solution.

We’ve also introduced a ‘subsequent referral fee’ in order to eliminate channel conflict. This means we still pay a referrer should a borrower come back to PMA directly after taking a previous loan with us via a referrer.

At PMA we’re all about having a transparent lending process that offers greater flexibility and quicker turnarounds than traditional lenders so that a business can get the best solution.

6. What do you think is most important when maintaining good relationships with brokers/referrers?

Listening to client or referrer and understanding their requirements is absolutely paramount. Taking the time to ask questions and fully understand their individual circumstances makes the rest of the process so much simpler. It’s also important to provide prompt responses and to make quick lending decisions. Overall, by providing solutions that work for the client ensures a smooth process that everyone is happy with.

7. PMA doubled its new loan volume last financial year, why do you think this is?

I think it comes down to great service and delivering great results. We receive a lot of return business which is pretty rare in private lending but it’s something we’re extremely proud of. We’ve found that the great relationship we have with brokers means that they spread the word to other brokers in their network.

8. What are you aiming to achieve at PMA?

I’m hoping to get in touch with as many brokers as possible to find out more about their clients’ needs and educate them about what PMA is able to provide. I also think it’s important to establish a good relationship with the client directly and make them comfortable whilst maintaining a good relationship with the broker.

I’m aiming to always provide prompt and efficient lending solutions and keep on top of the entire lending process through to settlement.

 

To speak to Shanta about your business finance needs get in touch with her on 03 8488 9926 or 

[email protected]

 

PMA’s 2017 In Review

What a year it’s been for Private Mortgages Australia! We’ve had some standout moments in 2017 including:Private Mortgages Australia celebrates some stellar moments in 2017

  • Doubling our new loan volume in the 12 months leading up to our third birthday in July
  • Raising our maximum LVR to 80%
  • Taking a stand to put an end to channel conflict.

We’ve also continued to grow our team with new hires, hosted well-attended webinars and increased our Referrer Remuneration and Referrer Rewards. Here’s a bit more information about the highlights of 2017:

Doubling our Loan Book

In 2017 we saw our new loans grow by 115%, doubling our volume.  We’re so impressed that we’ve been able to maintain this growth (in our second year we increased our loan volume by 151%) – we definitely have our database of 3,000 brokers and referrers to thank for this.

We’ve put this success down the ever-increasing number of small-to-medium businesses needing access to commercial funding who can’t get it from the banks. It’s also been great to see so many brokers diversifying into the commercial space to work with these businesses.

We’re expecting a further 50% increase in the number of settled loans in the current financial year and are already well on track to achieve this.

LVR Increase

In the second half of this year we decided to raise our maximum LVR to 80%. The decision comes after we partnered with Property Predictions Pty Ltd, the creator of patented methodologies which measure demand trends and predict expected changes in prices across the Australian property market.

Most private lenders will generally only lend 65% to 70% LVR, and a lot of the time this is based on a forced-sale valuation rather than the true value of the security property. We always take the true value of the security property without any tricks in order to give our borrowers a better solution. The Traffic Light Reports from Property Predictions employ predictive and patented algorithms developed by leading property market analyst, John Lindeman, to provide highly accurate short term rent and price change predictions for houses and units in any suburb in Australia.

Combatting Channel Conflict

A recent survey conducted by The Adviser found that 78 per cent of brokers had lost a client as a result of channel conflict. It appears to be a growing concern with 88 per cent more worried about channel conflict than they were 12 months ago.

We receive over 90 per cent of our business from broker referrals and we want to keep it that way. That’s why we decided to make changes to our referral fee structure to alleviate any concerns from our broker partners about channel conflict.

We’ve now introduced a ‘subsequent referral fee’ which is paid to the referrer should a borrower come back to PMA directly after taking a previous loan with us via a referrer. We get a lot of repeat clients (which is uncommon in private lending) so we believe we’ve got to be doing something right. We want to reward referrers for providing us with a good lead and will continue to do so no matter how many times that client comes back to us directly. It’s basically free money for our referrers but we believe they deserve it. All referrer fees are paid within 24 hours of settlement with no clawbacks.

Finally, we’d like to take this opportunity to wish all of our supporters a very merry Christmas! It’s an extremely busy time for us and we’ll be working right up until Christmas Day in order to help any borrowers who need finance before the end of the year. If you have any commercial finance needs please get in touch.

MERRY CHRISTMAS!

Private Mortgages Australia raises maximum LVR to 80%

Specialist commercial lender, Private Mortgages Australia, today announced that it has raised its maximum LVR to 80%. The decision comes after the private lender partnered with Property Predictions Pty Ltd, the creator of patented methodologies which measure demand trends and predict expected changes in prices across the Australian property market.

“Having access to these Traffic Light Reports from Property Predictions gives us confidence to offer a higher LVR to borrowers who are looking to secure finance against properties in those suburbs,” said Tony Barbone, Managing Director of Private Mortgages Australia.

“Most private lenders will generally only lend 65% to 70% LVR, and a lot of the time this is based on a forced-sale valuation rather than the true value of the security property. We always take the true value of the security property without any tricks in order to give our borrowers a better solution.”

The Traffic Light Reports from Property Predictions employ predictive and patented algorithms developed by leading property market analyst, John Lindeman to provide highly accurate short term rent and price change predictions for houses and units in any suburb in Australia.

“It’s great that PMA is able to use the insights from our Traffic Light Reports to offer better solutions to their borrowers,” Lindeman said. “The predictive software we use gives them the confidence to back the borrower and increase the maximum LVR to 80% in selected suburbs. It creates a win-win situation for both PMA and the borrower.”

PMA puts a stop to channel conflict

Channel conflict: PMA moves to stop channel conflictA recent survey conducted by The Adviser found that 78 per cent of brokers had lost a client as a result of channel conflict. It appears to be a growing concern with 88 per cent more worried about channel conflict than they were 12 months ago. Over 93 per cent of brokers cited the major banks as their biggest concern and 74 per cent of brokers said channel conflict would influence which lenders they recommend to clients over the coming 12 months.

Private Mortgages Australia receives over 90 per cent of our business from broker referrals and we want to keep it that way. That is why we’ve decided to make changes to our referral fee structure to alleviate any concerns from our broker partners about channel conflict.

We’ve now introduced a ‘subsequent referral fee’ which is paid to the referrer should a borrower comes back to PMA directly after taking a previous loan with us via a referrer. We get a lot of repeat clients (which is uncommon in private lending) so we believe we’ve got to be doing something right. We want to reward referrers for providing us with a good lead and will continue to do so no matter how many times that client comes back to us directly. It’s basically free money for our referrers but we believe they deserve it. All referrer fees are paid within 24 hours of settlement with no clawbacks.

Of course, we do have some conditions around this. For instance, if a client comes back for a subsequent loan via a new referrer with an updated client mandate, PMA will always pay the new referrer based on the client’s updated direction to pay.

To find out more about the referral fees, interest rates and LVRs you can view a copy of our Referrer pack here.

PMA has also introduced a Referrer Reward program to show our appreciation for the great work our referrers do. As part of the program, the value of all transactions settled with PMA will count towards your referrer rewards total and each time you reach a referrer milestone you will receive a reward from PMA – think a nice bottle of Grange, flights, shopping vouchers and much more. Each time you reach a new milestone we’ll have a bigger and better reward for you.

To find out more about the rewards milestones, visit the Referrer page on our website here.

PMA doubles yearly loan volume

Private Mortgages Australia doubles loan book Specialist commercial lender Private Mortgages Australia (PMA) has celebrated three years in business by doubling its volume of newly settled loans over the past financial year.

PMA managing director Tony Barbone said the firm’s success was a result of an increase in small-to-medium businesses needing alternatives to the banks.

“We’ve had so many brokers and referrers come to us with clients who have been turned down by the banks. While serviceability is the greatest concern for banks, we are primarily focussed on securing the loan using property equity which allows us to be a lot more flexible.”

While Barbone was reluctant to mention the specific size of PMA’s loan book, it had increased by 151% in its second year and then a further 115% in its third, most recent year, he told Australian Broker. PMA was first established in 2014.

“We’re so impressed that we’ve been able to maintain this growth and double our loan volume year on year. We definitely have our brokers and referrers to thank for this.”

Barbone said he had also noticed an increase in the number of brokers diversifying into the commercial lending sector.

“It’s great that brokers are starting to see the benefits of working with small-to-medium businesses as there are so many who struggle to access funding when it is readily available from non-bank lenders.”

PMA currently has over 3,000 brokers in its database with an increasing number referring commercial loans to the lender, Barbone said.

“We’ve found that educating brokers about commercial loans via our regular webinars has helped us continually grow the number of referrers that come us.”

The directors of PMA expect a further 50% increase in the number of settled loans in the coming financial year.

The firm has recently focused on reducing channel conflict by bringing in ‘subsequent referral fees’ to referrer clients who approach PMA directly for additional loans. The firm has also amended its Referrer Rewards Program to make obtaining rewards simpler when referrers introduce clients to the lender.

“We have now become ‘channel agnostic’ whereby a borrower pays the same approval fee if they come direct to us or through a broker. We also allow our brokers to add a service fee or mandate,” Barbone said.

“We have also added a new policy whereby if a broker sends us a client, that client takes out a loan and then that same client comes back to us directly for another loan we will still pay the broker a referral fee.”

It’s important to respect the fact that these individuals are all broker clients, he added, especially since more than 90% of PMA’s loans come from the third party channel.

Posted on Australian Broker

 

Birthday Bonanza: Submit a deal, get $250

Private Mortgages Australia is celebrating its third birthdayHappy birthday to us! We’re very excited to be celebrating our third birthday on the 9th July but we want to give the gifts to our referrers. Refer a loan to us between the 1st of June and the 9th of July and have your client accept an Indicative Letter of Offer then we’ll give you a $250 Myer voucher. Easy as that!

Each additional loan will also earn you another $250.

Head on over to our Facebook and LinkedIn pages and share a birthday message with us using #HoorayPMA

If you have any commercial clients that need fast, flexible finance, then get in touch with us now.

 

Rewarding our referrers

Don’t forget that we also offer great rewards to our referrers through our Referrer Rewards program.  As part of the program, the value of all transactions settled with PMA will count towards your referrer rewards total and each time you reach a referrer milestone you will receive a reward from PMA – think a nice bottle of Grange, flights, shopping vouchers and much more. Each time you reach a new milestone we’ll have a bigger and better reward for you.

PMA makes new hire on back of stellar year

Royce Goh Senior Relationship Manager at Private Mortgages AustraliaPRESS RELEASE: 

Private Mortgages Australia (PMA), the specialised lender offering cost-effective loans to small-to-medium businesses, has hired experienced credit professional Royce Goh in the role of Senior Relationship Manager.

With 15 years of lending experience in Australia and overseas, Goh joins PMA from First Financial Services where he held the position of Mortgage and Business Loan Consultant. Prior to this he was the Asian Business Development Manager & Relationship Manager with NAB Business Banking.

“Private Mortgages Australia is experiencing incredible growth in the short-term lending space for commercial clients, so I’m really pleased to be joining them at such an exciting time,” said Goh. “The team are a great bunch of people who work with great brokers and borrowers and I’m looking forward to growing the business even further.”

In 2016 PMA saw a 210% increase in the number of loans settled and saw an 38% increase in the number of referrals coming in through referrer relationships. In order to accommodate this growth, PMA expanded the team with new hires, including Goh, over the last 12 months.

“2016 was a very exciting time for us at Private Mortgages Australia and with Royce joining us I can see the business getting bigger and better,” said Managing Director, Tony Barbone. “There’s been a real shift in the market with small-to-medium businesses realising that funding options are available if they get turned down by the banks. We’ve also seen many brokers diversifying into the commercial space which has seen more borrowers being introduced through referrer partners.”

“We’re expecting 2017 to be an even stronger year for us as many foreign investors look for alternative finance solutions due to the banks placing stronger restrictions on overseas borrowers,” continued Barbone. “Royce’s experience in Australia and abroad as well as his multi-lingual skills will make him the ideal person to help foreign borrowers find a loan that works for them.”

 

– ENDS –

About Private Mortgages Australia

Founded in 2014, Private Mortgages Australia (PMA) offers short-term, flexible loans to commercial clients that can’t get finance from the banks. Its transparent lending process offers quicker turnarounds than traditional lenders so that a business can get the best solution for achieving its goals. PMA offers first mortgage finance, second mortgage finance and caveat loans and can offer tailored solutions for borrowers who require urgent funding, have an ATO debt, are refinancing, are developers completing a project or are credit impaired.

Refer now and receive an iPad Mini 4

PMA Christmas promotion

To celebrate this festive season, PMA is giving away an Apple iPad Mini 4 to brokers who actively refer good quality opportunities and connect with our business. All you need to do is refer two loans by 31 December 2016. Both loans must have an Indicative Letter of Offer Accepted by 31 December 2016. Maximum of two iPads per referrer. Get in touch to discuss your client’s needs now.

We’re open right up until Christmas day and have extra staff on board to help with the rush ahead of Christmas.

And don’t forget about our Referrers Rewards program. As part of this program, the value of all transactions settled with PMA will count towards your referrer rewards total and each time a referrer reaches a milestone they receive a reward from PMA – think a nice bottle of Grange, flights, shopping vouchers and much more. Each time a new milestone is reached there will be a bigger and better reward. Call us to find out more about the milestones and rewards – 1300 856 683.

2016: A year to remember for PMA

The team from Private Mortgages Australia inlcuding Tim Hart, Tony Barbone and Peter Cuskelly.What a stellar year Private Mortgages Australia has experienced in 2016. In the last 12 months, We’ve seen a 210% increase in the number of loans settled in the last 12 months and, in order to accommodate this growth, have expanded our team with recent hires.

This year we’ve continued to develop great relationships with our referrers and have seen an increase of 38% in the number of referrals. To show our appreciation for the great work our referrers do we launched our Referrers Rewards program in 2016. As part of this program, the value of all transactions settled with PMA will count towards your referrer rewards total and each time a referrer reaches a milestone they receive a reward from PMA – think a nice bottle of Grange, flights, shopping vouchers and much more. Each time a new milestone is reached there will be a bigger and better reward. Call us to find out more about the milestones and rewards – 1300 856 683.

New digital presence

In 2016 we also launched our new website which provides information about the types of loans we offer and resources for our referrer partners. We’ve also made it possible for people to find out more about us through social media by joining Facebook, Twitter and LinkedIn.

To keep referrers informed we’ve held regular webinars throughout the year with our fourth webinar taking place on Thursday 8th December at 11am. You can register here.

End of year rush

The lead up to Christmas is the busiest time of year for PMA and we’ll be working right up until Christmas Day to ensure that our clients can gain access to the finance they need. To celebrate this festive season, PMA is giving away an ‘Apple iPad Mini 4’ to brokers who actively refer opportunities and connect with our business. All you need to do is refer two loans by 31 December 2016. Both loans must have an Indicative Letter of Offer accepted by 31 December 2016. Maximum of two iPads per referrer. Get in touch to discuss your client’s needs now.

Looking ahead to 2017

2017 is also looking like a very promising year in the private lending space. Further restrictions by the banks on foreign borrowers will force businesses to look to alternative solutions for their short-term finance requirements. While serviceability is the greatest concern for banks, private lenders like PMA are primarily focussed on securing the loan using property equity which allows them to be a lot more flexible and an ideal solution for foreign borrowers that can’t get bank finance.

We’ve also started to see the trend that many referrers are branching out into commercial broking and expect that the number of brokers we will be working with in 2017 will continue to increase.

We’d like to say a huge thank to all our referrers for your support in 2016 and we wish you all the best for the Christmas season. We’re looking forward to working with you again in 2017.

Merry Christmas from the team at Private Mortgages Australia.

Q&A with Peter Cuskelly – National Credit Manager

Private Mortgages Australia National Credit Manager Peter Cuskelly.Peter Cuskelly is the National Credit Manager at Private Mortgages Australia. He joined in 2015 bringing with him his wealth of experience in credit across all types of lending including commercial, agribusiness, mortgage and personal clients.  We thought we’d take the opportunity to find out from Peter himself what’s involved in his role and what he’s looking for in a commercial finance application.

1. What made you decide to join PMA?

After a long career as a bank lender and a short time as a broker, I was attracted by the flexibility of PMA to do a deal that makes sense, rather than making the borrower/broker meet the rules and restrictions of bank lending policy. I also like PMA’s transparent approach making sure the broker and client stay informed along the whole process with no nasty surprises.

2. What’s some of the more common reasons why borrowers can’t get traditional bank finance and need a private mortgage?

Common reasons include poor credit record, inability to demonstrate servicing and speed to funding.

3. You charge higher rates of interest than traditional bank lenders. Why is the market prepared to pay private mortgage rates?

We provide a niche service to provide loans where the loan structure gives the borrower what they need and has a sound exit, but just doesn’t meet the strict criteria of the bank. Often our customers are entering deals that are very profitable, so they don’t mind paying a bit extra for the ability to get the deal over the line quickly.

4. Tell us about the type of credit PMA provides?

PMA lend for any legitimate business purpose. Our core business is short term funding from two to 12 months up to $2 million, however we are now also managing larger loans from $2 million to $50 million with our wholesale funding pool which has really opened up some great opportunities.

5. Do you have postcode restrictions?

No – PMA will lend against property anywhere in Australia however we do reduce the Loan / Value Ratio (LVR) based on the property type and use the Genworth Security Location postcodes.

6. What’s the maximum LVR you will go to?

Our maximum LVR is 75%.

7. What evidence of serviceability do you require from a borrower?

This is the key differentiator for PMA – we capitalise interest over an agreed prepaid term so the client doesn’t need to make regular payments during that period. Repayment is based on the borrowers’ ability to execute their “Exit Strategy” to repay the loan, rather than service the debt over a long term.

8. Tell me more about what you look for in an exit strategy?

The key things that I look for in an exit strategy are that it is realistic and can be achieved in the timeframe. For instance, if the exit strategy is to receive funds from a contract then we need to ensure the contract can be fulfilled and is large enough to repay the debt. A secondary exit strategy such as refinance or sale of security property is also usually sought as a back up.

9. How and when do you pay your referrers?

Referrers are paid 24 hours after settlement, with no “claw backs” for arrears or early repayment.

10. How quickly can you settle?

We can usually provide an Indicative Approval within a few hours. Caveat loans can be settled within 48 hours with a straight forward security and co-operative borrower. Registered first and second mortgage loans generally require valuations (and bank consent for 2nd mortgage) so will take longer.

11. How do you value the security properties?

PMA have a very flexible valuation policy which allows us to use a range of sources including existing valuations, desktop valuations and agent appraisals as well as full valuations depending on the lending scenario.

12. Do you do development finance? If so how does it work?

We get involved in development finance both as a construction financier and also on a second mortgage basis to assist completion when the banks won’t help fund cost overruns.

As with all PMA loans we are flexible and make sure our deal structure suits the requirements of the borrower.

13. What loan sizes do you do?

We are the exclusive Mortgage Manager for PMA Capital Ltd, which is our own Fund that specialises in loans up to $2 million. We can now also manage larger loans from $2 million to $50 million with our new funding pool.

14. What tips would you give referrers to give them the best chance of getting their application approved?

If you have a scenario you would like considered, please use our one page Quick App which provides us all the information we need to quickly assess the proposal and a basis to provide an indicative quote or discuss the deal further.

15. What was the most exciting deal you’ve worked on?

Exciting is not usually a word you use a lot in finance. I think the most satisfying deal was one where we worked with the client and broker to pay out the ATO and stop administrators being appointed to a sound business. The exit strategy of selling a property was finalised within the loan term. It was the perfect loan from start to finish.

16. What makes an ideal PMA borrower?

I think it is a borrower that is keen to work with us to get the funding finalised as soon as possible and then make every effort to carry out the exit strategy and repay the loan.

17. What do you think makes PMA the best at what they do?

Taking the time to listen to the broker and client and making sure the deal meet their needs.

18. What’s next for PMA? Any milestones you’re looking to achieve?

There is so much going on at all different levels. I think the rate of growth of PMA has been great and I am looking forward to doubling our loan book again over the next 12 months. From an operational perspective, we are building a custom software program to automate the assessment process and will shortly start looking for a new credit support staff member, to help manage the growth (and take up some of my workload).

 

Peter has a Bachelor of Business, Graduate Certificate in Corporate Finance and is a qualified CPA. He has over 30 years experience in finance and also holds a Diploma of Finance and Mortgage Broking Management, and has completed the Agile Project Management Foundation & Practitioner course.