What makes PMA a flexible lender?

1) Serviceability is not required

Traditional finance institutions like banks follow rigid serviceability criteria before approving a loan.

These serviceability requirements are there because banks want to make sure that a person is able to cover monthly payments.

Because most small businesses don’t have a fixed revenue stream, meeting serviceability requirements can be tricky, especially if a business has lumpy or seasonal cashflow.

Rather than serviceability, PMA focuses on the borrower’s exit strategies to determine the capability of the business owner to pay back their loan. And based on this exit strategy, loan terms can be tailored accordingly.

2) PMA considers multiple exit strategies

There are many exit strategies that PMA’s borrowers have used in the past, but the three most common ones are refinancing, selling an asset, or paying back from business proceeds.

Refinancing: If a borrower is looking to get a bank loan but isn’t able to qualify because their finances aren’t in order at that particular time, they could take out a private loan first to get their financials sorted and allow them to refinance to a traditional lender at the end of the loan term.

Selling an Asset: Another common strategy used is when a borrower is looking to purchase, renovate, or develop an investment property. The exit strategy for them will be the sale of the property upon completion.

Paying back from business proceeds: If a borrower needs funds for working capital or for purchasing additional equipment to increase production, then the exit strategy will be paying back the loan from increased business earnings

3) Quick and Streamlined Approval Process

Aside from offering tailored solutions, PMA provides flexibility to borrowers through its streamlined application and approval process, ensuring that businesses can access the funds they need in a timely manner.

It all starts with the submission of our Quick App form that takes less than 10 minutes to complete. We have an initial response time of 4 business hours to notify the applicant if PMA is in a position to help, and if yes, be able to assist the applicant regarding the next steps.

Settlement can be done within just five business days upon receipt of all required information.

4) Diverse Range of Loan Products

PMA also provides flexibility by offering a diverse range of funding solutions for different business needs such as:

• Bridging/Working Capital loans
• Business Purchase/Establishment Finance
• Equipment Finance
• Equity Release (1st/2nd mortgage)
• Refinance/Debt Consolidation
• ATO Tax Debt Relief Loan
• Land/Property Finance
• Land Subdivision Finance
• Renovation/Flip Finance

This diversity allows borrowers to choose the product that aligns with their specific goals and financial circumstances, adding an extra layer of flexibility to their funding options.

5) Transparent terms and conditions

Flexibility is most effective when it is paired with transparency. PMA prides itself on providing clear and transparent terms and conditions, which is the reason why we’ve built excellent relationships with brokers and borrowers alike.

Borrowers are kept informed about interest rates, fees, and repayment schedules, allowing them to make informed decisions about their financial commitments. This transparency builds trust and contributes to the overall flexibility of the lending process.

For more information on PMA’s commercial finance products, feel free to contact us and our customer relations team will gladly answer any questions you may have.

If you are a broker and would like more information about PMA’s referral program, you may download the referrer pack to learn more.