As part of our continued commitment to provide clients with short-term property-backed secured business loans, Aquamore recently secured a new $120-million warehouse facility.
The latest move in our strategy to drive growth, this facility enables us to provide more finance packages to brokers and their clients. Backed by an institutional bank with a similar vision and goals, the warehouse facility heralds the start of a new round of funding as Aquamore continues to negotiate and finalise an increased volume of loans to brokers acting on behalf of their clients.
The move drew the attention of Broker News and resulted in a very thorough article about Aquamore. We sat down with our Head of Third Party Distribution, Matthew Porch, to get the details that prompted the positive attention from both the media and industry alike.
What financial brokers want
Matthew, why does Aquamore attract financial brokers? What’s different?
Let’s consider the product firstly. We prefer to service interest every month as this enables us to maintain a competitive edge and gives the client more flexibility in terms of their limit. We are open to pre-payment or capitalisation of interest in the appropriate circumstances, but this is not an automatic offer on every table.
We go beyond blue-chip properties in prime locations and recognise that the suburbs and regional areas can provide sound investment opportunities.
From a financial services perspective, we keep things as simple as possible for brokers’ clients, which is not always easy to do in the world of loans. However, we genuinely understand that every client comes to the table with different goals, needs and situations. So we work to make our policies as flexible as possible.
We’re also mighty quick and can provide fast business loans. It is not unusual for us to provide letters of offer within 24 hours, provided all our requests for information have been met and passed muster. Brokers appreciate how easy our online application portal is to use, so these fast application and turn-around times are not uncommon.
Being transparent is also key to our success. From pricing to policy fine print, we lay it all out so there is no room for misunderstanding or confusion. By way of example, we tend not to charge commitment fees or engagement costs, and we pass on valuations and legal requirements at cost, without any kind of added clip-on by us.
Brokers respect us because we can identify good borrowers, and once we do, we then support them to achieve their goals.
How do you identify a ‘good borrower’?
In part because we take the time to recognise we’re potentially doing business with an individual, not a cookie-cut-out template. We do not simply analyse the asset or assets behind an individual. Instead, we carefully consider their profile. There is always a more complete story when you look beyond the assets.
Commercial Business and Property Loans
We provide two-month to two-year loans for residential, commercial and land projects from $300,000 to $5-million. This short-term duration is something fairly unique that other private money lenders in Australia tend to eschew. Not us – it’s very much our sweet spot. Indeed, this is where we believe we can deliver maximum value so our clients can, in turn, generate maximum reward. Now, if the client reaches their loan expiry and wishes to extend, we’re open to considering this provided they have acted soundly during the life of the loan.
What fast business loans are most popular right now?
Commercial property loan lending has dialled up in recent times. This is partly due to the fact that some major lenders have pulled out of this space whilst others are not able to be as nimble and agile as Aquamore.
Australia is coming out of its post-pandemic numbing, and we see ourselves as playing a responsible role in helping to stimulate the economy. Encouraging and providing real estate investment loans does not just support a single individual’s interests; it has a flow-on effect throughout the community. So the more eligible short term loans we can grant, particularly now, the better.
Advice for brokers
What advice do you have for brokers reading this?
Don’t put all your eggs into the residential home loan basket. We’ve all had to adapt and evolve these last two years, and considering commercial loans can open you to an entirely new and lucrative income. Also, encourage clients to consider the bigger picture beyond. For example, short term financing with the potential to evolve into a bridging loan. This can lead to a much bigger, more lucrative outcome that might not seem plausible right now. Yet down the line, it’s actually probably well within reach through bridging finance.
If our conversation with Matthew has sparked your interest and you would like to inquire about our loans and services, please contact our team. We’d be delighted to hear from you, learn about your specific situation, and see how we can help you achieve your financial goals.