A fresh-thinking disruptor in the Australian financial industry, commercial loan provider Aquamore has experienced a strong and enthusiastic broker response to its short-term finance solutions. We sat down with the Head of Third Party Distribution, Matthew Porch, to find out more.
Matthew, can you firstly clarify; what is a bridging loan?
A bridge loan is a type of gap financing arrangement wherein the borrower can access short-term loans to meet short-term liquidity requirements. Essentially, these loans “bridge the gap”.
What loans are available with Aquamore?
We provide short-term bridging finance packages from $300,000 to $5m loan sizes. The average lifespan of these loans is 12-months, although this can be negotiated.
Who would benefit from this type of bridging finance?
That’s part of the attraction of an Aquamore short-term bridge loan; we don’t have a cookie-cut-out clientele. We enable businesses needing quick cash flow for new equipment, staff or other opportunities. Equally, we’re an attractive proposition to property developers looking to acquire new sites or property investors looking to make additional purchases. We assess and consider each applicant on a case-by-case basis rather than try to fit square pegs into round holes. This has been a big part of our industry success to date.
Let’s talk about that. What makes Aquamore different from more traditional bridge finance lenders?
Great question, and I can answer that in several ways.
We’ve just touched on the fact we don’t apply a homogenous lens across our processes or our culture, for that matter. We’re not traditional, so we’re not set in stale ways. We’re nimble, responsive, and open-minded. For example, a broker could visit our site right now and apply on behalf of a client. We can initiate the assessment without requiring all documentation upfront immediately (although, of course, it will be necessary at some point).
I think efficiency is also something brokers appreciate. For example, approving an application fast is not unusual for our team. For a client, that kind of turn-around can be all the difference between remaining in property negotiations or being outbid.
Institutional capital is also an important feature that brings an element of security and confidence to what we do. We’re not financial cowboys – we’re in this with solid backing.
The fact we package up smaller loans with shorter lifespans (albeit this is flexible) and a very simple pricing structure also makes us stand out from others. We know the Australian economy is built on small businesses. These operators do not want – or need – to be locked into huge loans for protracted periods. More manageable-sized loans empower them to grow or get over that speed bump without biting off more than they can chew. We don’t want our clients to drown in debt – we want them to prosper.
Finally, I’d say transparency is another key point of difference. There is no fine print and no hidden agenda at Aquamore. Our rates and terms are clear to see and understand. We are also very upfront in confirming that brokers receive a commission from us when client applications are successful. We want everyone in this transaction to prosper.
How do brokers apply for bridging finance?
This is the easy part! They just visit our site and apply for a loan online. The process is very simple, and as I mentioned earlier, not all documentation needs to be to hand immediately – brokers can submit it retrospectively. Assessment can take place quickly, and approval can be fast.
What security does Aquamore require?
All loans must be backed by Australian real estate collateral. In September 2021, we sourced more funding via a $120M institutional warehouse facility. The facility will grow and enable this particular funding line to continue. The financial partner involved in the purchase shares Aquamore’s goals, so it was very much a strategic and sustainable step towards our vision.
What is Aquamore’s vision?
Our vision is to be the number one bridging loan provider in Australia, and I am confident we are well on our way to achieving this. We’re working towards this goal by demonstrating our understanding of small business lending and forging relationships with repeat referral partners. Our solutions-based approach and view of the bigger picture are what underpins this vision. However, I think what ultimately makes our vision unique (and why brokers are responding to us so positively), is because we see the value in many businesses where others don’t.
If you have any questions about the information Matthew has shared with us here, or you require more details about a bridging loan, please contact the Aquamore team today. We’d be delighted to hear from you!