Did you know that over a third of small businesses fail due to cash flow issues that could have been prevented? Not only this but the amount of growth opportunities that SMEs miss due to lack of finance is enormous. Spotcap wants to see small businesses grow and to help make this change, we’ve made small business finance easier than ever to understand, with our guide to commercial loans.
A huge problem for small business is an even bigger opportunity for residential mortgage brokers. The current state of the Australian economy has led to favourable circumstances for brokers to diversify their offering by considering commercial lending. Plenty of your clients are business owners, often requiring not only residential finance but business finance, too. Spotcap offers unsecured business lines of credit that are made available to the everyday business owner. Our loans are unsecured, and applications take as little as 5 minutes.
Best of all, it’s so easy to write this type of finance! A brief 5-step process is below, making you more valuable than ever to your clients, and generating another stream of income in no time.
1) Create a partner account
2) Complete pre-qualification questions
These are five basic questions that ensure your client’s business is in good financial standing, helping us analyse the health of the business.
3) Fill out basic client and business information
For applications up to $100k, no financial documents are required. Instead of uploading financials, we only ask four questions:
- What was the total sales revenue for the past quarter?
- What was the business profit over the past 36 months?
- Does the business have an existing overdraft or line of credit? If so, what is the limit and how much is currently in use?
- Does your business have any outstanding borrowings? If so, how much and what are the monthly repayments? (You must include all liabilities).
For applications between $100k – $250K, we require:
- 4 quarters of BAS
- 2 years of Profit & Loss
- 2 years of Balance Sheets
4) Hand the application over to your client to complete
Go back to the main dashboard where you started the application, and click on ‘Open Applications’ (in blue). You will see your client’s email address above a button saying ‘Hand over to User’. Click this button to send the application to the client to sign off and submit.
5) The client connects their business bank account
The client will need to choose a bank from a list in a drop-down menu, then input their login details as if they were accessing the account through the bank’s website. This allows us quick and easy access to the financial data needed to make a decision.
Once the client completes their application, it will be sent to our expert team of underwriters to assess the application and within 24 hours, you will have an answer to give your client.
Once your client draws down against their approved line of credit, we’ll pay your commissions instantly. No need to wait weeks (or even months!) for commission payments to process, as is the case with some other lenders.
It’s that easy to write this type of finance – even as a non-commercial broker!
Diversify with smart and simple business loans
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Originally published October 8 2018 , updated July 11 2019