Over the next two weeks you can expect to receive a lot of phone calls from business owners wanting to borrow money to support their cash flow over the Christmas break.
The best part about borrowing with HomeSec is that if they do need to borrow money for 3-4 months, as an example, they don’t need to make any repayments until their loan matures.
At HomeSec, we have designed our entire business model around helping businesses succeed.
The reality is that businesses have enough on their plates as it is with meeting their other financial obligations, and we don’t think we need to add to that stress, especially when the point of our loans is to support cash flow in the first place.
A reminder that if over the next few weeks you find yourself busy attending Christmas parties and you have a new deal, just call us or shoot us an email and we will take care of everything for you, and you can still charge your usual brokerage.
Don’t forget that we never require mandates. YOU simply tell us what your brokerage will be, and we will pay to you at settlement.
Watch our short video on HomeSec Business Loans over Christmas
Just last Friday, we had the unfortunate experience of witnessing some disgraceful behaviour from another private lender. We were settling a loan for a loyal client of ours, as they needed some money for cash flow for the Christmas holidays, and the loan also involved paying out another private lender.
The other lender took two days to give the client a payout figure, and once they knew he was desperate they gave him the payout figure an hour before settlement and added an extra $20K in Exit Fees.
Fortunately we have the technology to do a variation on the loan contracts, so we were able to lend him an additional $20K to pay out the exit fees.
But that's not the point here. The real point is.....
The grass is not always greener on the other side when you see a private lender advertising cheap rates folks! They will always get you somewhere!
At HomeSec we pride ourselves on transparency being one of our core values!
- We rebate interest if you pay back early
- We have no hidden fees
- We are the only private lender that can settle any business loan in under 24 hours
- We have a broker reward program
- Every aspect of business is aimed at making it easier for the broker to settle loans and for the brokers to make money
We think it’s fair to say that most of what the media reports about economy is doom and gloom, as that 'sells papers'. However, we want to reassure you that at least from our perspective, it’s not the case at all.
For example, auction clearance rates are reported as being fairly low, but it is NOT because people are desperate to sell.
It’s because sellers have a figure in mind, and the figures they are getting from buyers, who assume they are desperate, are ridiculous. Owners are simply showing that they are prepared to hold out (and have the financial capacity to do so) until buyers become more realistic.
Another reason is the quality of stock on the market. Wealthy or financially savvy people are essentially saying, ‘I’m not going to even bother listing one of our properties on the market now.’ Of course, this is not what the papers are reporting!
- Who doesn’t need valuations? HomeSec
- Who doesn’t charge thousands upfront? HomeSec
- Who capitalises the interest for the term of the loan? HomeSec
- Who rebates interest if you pay back early? HomeSec
- Which lender lets you earn big commissions and add an interest trail? HomeSec
Speaking of property sales, don't forget that we can fund purchases that are in rescission THE SAME DAY. Click HERE for more info.
As we are sure you are well aware, the hardest type of finance to obtain for your clients is a business loan, especially for a start-up business.
For an application to be successful, the business needs to provide projection figures, full financials, or a 50% deposit if starting a new business, and these are just to name a few.
The truth of the matter is that small business hire 70% of Australian’s working population, and that’s why it’s so important that you as a broker have access to a private lender that you can trust.
Now Let's Talk About a Solution!
We are here to help you and your client in any way we can!
Short Term Business Loans (Caveat Loans / Bridging Loans) Explained in 2 minutes. Click HERE
When it comes to service, speed, integrity AND RESPECT, there's only one lender you need to remember and that's HomeSec Business Finance.
The team at HomeSec Business Finance
One question that keeps coming up lately is…
Why is HomeSec the only private lender that capitalises interest for the entire term of the loan?
And it’s a very good question indeed! The simple answer is.... it’s called bridging finance folks!
The reality is all lenders should be doing the same, but that would mean they couldn’t charge the higher rate after the first month...cough cough…hide their fees!
The point of short-term business loans are to help cash-flow, and you need to be able to go about your day running your business, and still be able to comfortably pay your mortgage, wages etc.
That’s why when you borrow money from HomeSec Business Finance for any business opportunity, you don’t need to worry about any interest payments during the term of the loan. You can then pay back the loan once you have sold the stock, or refinanced. (as an example)
Click HERE to find out more about the importance of Capitalised Interest
On a positive note to finish off, if you have a client that is in rescission on a property settlement, we can settle it the same day. We’re seeing this increasingly become an issue with brokers, as the banks are taking a lot longer to settle.
While we can all appreciate how annoying it is when your inbox gets inundated with newsletters. At HomeSec we go to great lengths to provide value for you in our weekly updates, and to help educate you (and in turn, your client) on everything to do with Business Bridging Finance…plus it’s nice to not take it all so seriously and have a bit of a laugh sometimes.
It’s been great to see brokers becoming savvier since we started our emails, and a by-product of this has been more unscrupulous lenders being exposed for some of their sneaky tactics.
We think it’s fair to say everyone has had enough of the interest rate being quoted as “from,” which is a nice way of saying this is where the rate starts but is not the true rate. We have since noticed them attempt to change their structure and hide fees elsewhere, but shonky tactics always inevitably come undone. (Click HERE to learn more on this)
One of our competitors sent an email last week saying, if they settle the loan they will rebate the upfront fees. This means that if it doesn’t settle, you will be out of pocket for thousands of dollars to cover their long lunches. Now, with all due respect, we don’t need to discuss their tactics anymore
So a Recap on Our Product and Amazing 24 Hour Service...
- We are a Business Bridging finance LENDER
- Same day settlements to settle purchases in rescission
- 24 hour settlements for any business purpose
- We settle on a caveat behind the current 1st Mortgage
- We only charge $495 if your loan is conditionally approved, to cover our searches and due diligence - There is NO reason why you should pay any more.
- We don’t need valuations - Who has time, plus they are expensive for non-conforming loans
- We don’t need financials or cash projections, and credit history is irrelevant to us
- Brokers can charge up to 4% brokerage and you don’t need a mandate
We'd like to quickly explain our product in a bit more detail for some of our newer brokers, who are new to the HomeSec community, and we’d start with the very basics and that is... what exactly is our product?
Quite often in the finance industry, we hear a lot of different terms used to describe a short-term business loan, such as a caveat loan, but another way you can think of our product is as essentially bridging finance.
In a nutshell it is borrowing funds for a short period of time in order to make money, or avoid a major disaster. We have a saying at HomeSec and that is that cash is king when it comes to taking advantage of business opportunities, and that’s why it pays to have a product such as ours up your sleeve.
The reality is a lot of business owners are asset rich with poor liquidity, and that’s where HomeSec can help your client access money in under 24 hours (secured against their real estate asset) for just about any business opportunity.
Examples of Different Loan Scenarios From the Past Few Months
- Properties in rescission - If you are going to lose out on a property settlement because the banks are slow, we can provide bridging finance until you get your finance in place
- Purchasing discounted stock and selling for a profit
- Business tax debts as well as consolidating business debts
- Purchasing a new business - We don’t need financials or cash projections
- Builders starting new projects that need a cash injection to get a project started.
It's all about BRIDGING the gap between today and an event in 1, 2, 3 or 4 months time when long term financing (or some other financial event) comes through.
How Many Settlements are You Losing by Not Having this Product, When Your Client’s Finance Falls Through?
HomeSec Business Finance is a short-term business bridging lender that has been operating for over 14 years. We specialise in funding loans within 24 hours, for property settlements that are in rescission.
The speed at which we are able to provide access to funds has been a total game changer for the real estate agents we deal with. Which is why today we wanted to take the time to tell you a bit about HomeSec, and how we can help you and your clients.
Dealing with HomeSec is very straightforward!
HOW IT WORKS - WE will fund the purchase that is in rescission within 24 hours of application. (even the same day in many cases). Our bridging loan facility is only for a few months until they are able to get their longer term finance in place. Or alternatively they may be waiting on another property they have sold to settle, which would then enable them to complete the new property purchase. This is essentially what bridging finance is, and we fund these types of loans every day.
It should be noted that since our product is for 'business lending' and not consumer lending, your client’s Pty Ltd company will need to be the borrower for the loan.
Hands up if you’d like to go to Hawaii a few times a year on HomeSec?
Every now and then we like to remind brokers that with every loan you settle with HomeSec, you get points to put towards an iPhone, Smart TV, OR a trip to Hawaii.
We want to make it abundantly clear that this is not like the incentive programs, where you need thousands of points that will take years to acquire. This is very achievable, and if you understand our product, it is very achievable for you to be heading there a few times a year on HomeSec.
Don’t forget, HomeSec doesn’t just do smaller short-term business loans, we also do loans over 1 million dollars
In case you needed more convincing as to why HomeSec Business Finance should be your lender of choice for all your short-term business funding needs, here’s a reminder of what sets HomeSec apart from the rest of the pack…
Because integrity, transparency, service and respect are our core values, we can safely attend broker functions without worrying if we are going to cop abuse from brokers.
There's only one lender you need to remember and that's HomeSec.
The team at HomeSec Business Finance
We think it’s fair to say that most brokers would come across a client with the following stressful scenario at least a couple of times per month, and that is…
BORROWERS BEING IN RESCISSION BECAUSE THEY HAVEN’T GOT THEIR FINANCE IN PLACE.
Even though clients often think they have their ducks in a row with their finance, lenders have become so unpredictable lately. This can be extremely costly to the client, not to mention the heartbreak and stress that comes from a funder backing out. So we'd like to give you an example of how we can help.
Last Thursday afternoon we received a deal from a broker that was very organised with his loan submission. His client bought a development site, and if they didn’t settle by Monday, they would lose their sizeable deposit and consequently miss out on making a significant profit building on the land.
By 6pm that night we had the loan approved, and we then ordered the loan contracts.
By 9am on Friday the documents were signed. We then called the client’s conveyancer and advised we were ready to settle, and she didn’t believe us, because they had been let down so many times from the banks prior to this!
The settlement was booked in for 12pm on Monday!
AND BOOM.... IT SETTLED!!
So there you have it folks! We specialise in lending for cash flow, business tax debts, start-up businesses, business debt consolidation, business expansion, settling on properties in rescission… just to name a few.
Here's a little 2 minute video that shows just how much of a lifesaver our loans can be.