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.”

 

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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.

 

New Website Launches

Private Mortgages Australia has launched a new websitePrivate Mortgages Australia is very excited to announce the launch of our new website. We’re hoping the new site will be the place to go for all the information you could ever need relating to private lending. On the site we will regularly share industry news, give our opinion on relevant topics and provide updates on our products and the work we’re doing for our clients.

We’d be very happy to receive suggestions from our brokers and referrers about the kind of information you’d like to see on the site. We also hope to feature some of your articles and case studies so feel free to send over anything you think would be of interest.

Keep an eye on the website for details on our next webinar and we also hope to be launching a new ‘Referrer Rewards’ program in the not too distant future.

You can also follow us on our various social media pages including: