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The lender’s parent company, BNK Banking Corporation, has announced a shift in the strategic direction to pivot the lender’s trajectory into SME lending as a part of its next stage of expansion.
BNK Banking accredits this shift due to there being more than 2.4 million SMEs nationwide employing almost 5 million Australians.
National manager of sales and strategic partnerships at Better Choice, Paul Bakker, said the SME lending market has become a growth sector ever since COVID-19 restrictions have eased.
Mr Bakker added that the lender’s SME product range includes offering larger loan amounts of up to $5 million, along with waiving application fees for a limited time.
“Better Choice is well placed to assist SMEs who have done it tougher than most over the past few years in coping with a variety of challenges which included the COVID-19 pandemic and natural disasters in some regions,” Mr Bakker stated.
“It has been particularly tough for many businesses during the COVID era, with the pandemic impacting trade, staffing and supply chains.
“While there has been government stimulus to help SMEs retain staff and try and weather all the challenges, it can also be necessary to take out a loan to keep the business going and purchase necessary equipment.”
The lender’s commercial suite will include full doc and alt doc term loans along with products for commercial self-managed superannuation funds (SMSF) and lease docs.
“We are targeting residential brokers who are looking to diversify into commercial lending with a dedicated ‘best in market’ commercial team to assist brokers clients with a same day scenario response,” Mr Bakker concluded.
“We can offer applicants 25-year loan terms, P&I, with no annual reviews and just one form of income verification for commercial alt doc loans.
“Our offering is also there to assist brokers seeking finance to grow their business with a broker trail book loan.”
Last month (August 2022) the federal government delivered the draft legislation to introduce a technology tax incentive for SMEs for the purpose of supporting digital adoption by those businesses.
The Technology Investment Boost would provide a bonus of 20 per cent tax deduction for eligible expenditure incurred on expenses and depreciating assets that support digital operations.
Small businesses must have an aggregated annual turnover of less than $50 million to be eligible for the incentive, available until 30 June 2023.