Private Mortgages Australia: What You Need to Know

All loans must be secured by Australian property with available equity by a First or Second Mortgage with a Loan-to-Value Ratio of up to 75%.

We provide funding solutions for a variety of business needs including:

• Bridging/working capital loans
• Equipment purchases
• ATO tax debt solutions
• Debt consolidation/refinancing
• Equity release
• Property development finance
• Subdivision finance
• Flip finance
• Residual stock finance

What is PMA’s experience in the SME finance landscape?

Throughout the years, we’ve observed how securing timely business finance continues to be a challenge for many SME owners. Financing options from traditional institutions like the banks have rigid application and serviceability requirements which take time (sometimes up to 2-3 months). Moreover, these serviceability requirements can be difficult to qualify for.

In many cases, small businesses are “finance ready”, that is they’re in a position where obtaining finance is a suitable option. However, they may not be “bank ready”, meaning they are still unable to meet the standard requirements of a bank to be approved of a loan.

We at PMA strive to fill in the gaps for these businesses by offering flexible and tailored finance solutions, to allow them to secure the funding they need in the quickest possible time.

Who can benefit from PMA’s services?

SME owners and property developers who need fast and flexible finance solutions can benefit from PMA’s offerings. We don’t believe in a ‘one-size fits all’ approach when structuring loans. Instead, we tailor each loan to suit individual borrowers’ needs.

Aside from the self-employed, SME owners and property developers, our offerings can also benefit mortgage brokers and accountants in helping their clients make appropriate finance decisions.

Whenever their clients face difficulty in funding solutions, brokers and accountants can work with PMA in finding the best funding solution to meet their clients’ needs.

This allows them to provide a wider array of solutions for their clients and also improve their customer service.

How does PMA work with brokers/accountants?

At PMA, 90% of the borrowers we lend to are introduced to us by brokers and accountants so having great working relationships with our referrers is instrumental to the success of PMA. As such, PMA feels that it is important to reward our referrers generously. If a broker or an accountant refers a client to us and the client takes out a loan, referral fees are paid within 24 hours of settlement with no clawbacks or any hidden fees.

More importantly, our referral system is channel agnostic. This means that once you refer to us a client and that client comes back to us directly for another loan, the referrer will still get paid referrer fees for that second loan, and for the succeeding loans that follow if the borrower takes additional loans in the future.

If you’re a broker or an accountant and would like to know more about PMA’s referrer program, be sure to visit our referrers’ page.

What does PMA’s ideal client/borrower look like?

PMA’s ideal borrowers are those looking for finance for a genuine business purpose and have property with available equity to secure their loan. Many of PMA’s borrowers have a good exit strategy for repaying their loan, however, they don’t meet the strict requirements of traditional lenders, such as:

• They can’t prove that they will be able to service the loan by making regular payments
• They don’t have their financials up to date (most banks require two years of completed financials)
• They have a blemish in their credit history
• They have an ATO debt (banks won’t consider lending to anyone with an ATO debt)

What features separate PMA’s loans from other private lenders in the market?

One of the main advantages of PMA is that we have our own pooled mortgage fund (PMAC Trust) to fund our loans. This means that we don’t need to go to other funding institutions or individual investors to be able to finance a loan. So when you are speaking to PMA you are speaking to the actual lender.

This gives PMA the advantage when it comes to the speed of processing and settling a loan and gives the borrower peace of mind.

How quickly can deals be settled?

PMA has an average response time of 4 business hours after the initial query. The entire application, approval and loan settlement process can occur within just 5 business days upon receipt of all outstanding information.

What advice do you give to brokers looking to offer commercial finance?

For those who specialise in residential lending but wish to diversify to commercial, our suggestion is to make it a point to talk with your clients. Data has shown that an average of 30% of residential brokers’ clients are either self-employed or are small business owners. Chances are, you already have clients in need of commercial financing and all that’s needed is to open the conversation.

Listen to their needs, and exactly what they’re trying to achieve and these will be the best starting point to assess the solution that can best fit them.

Of course, knowing what your client needs is only half the story. The next step is in making sure you are able to present options that can help them achieve their goals. This is where working with private lenders becomes beneficial if you want to increase the number of options that you may want to present to your client. So in case your business client gets rejected for bank finance, there are other tailored solutions that you can present to them for their funding needs.

If you are a broker, accountant or business owner and have a business lending scenario you would like to discuss, feel free to contact us or you can complete our Quick App form here (< 10 mins).