As most Australians know, approaching a mortgage broker to find the best home loan financing offers means exposure to the best options available rather than just providing info on the finance packages offered by a single lender. That’s why so many Australians are approaching brokers to explore ways to finance their mortgages. But when it comes to unsecured business finance, brokers often find that they don’t have the capacity or the time to assist. And in many cases, that may mean losing a client or handing them over to unsecured lending platforms that focus on “selling” rather than offering individualised support.
To the SME, unsecured loans may seem like a convenient solution. But without information on the consequences of accepting a financing offer, it’s possible that they’ll opt for a fast, easy solution that may not benefit their financial position in the months to follow. It’s nice to know that you can get up to 500K AUD in unsecured finance, but all-too-easy to overlook the cost of credit and how that impacts the business.
Sometimes, the “best” offer isn’t the best for the individual enterprise that chooses to accept it. And, as we all know, “easy money” isn’t really easy. Furthermore, there will be those who, having seen that a business qualifies for the loan it really needs, will try to “upsell” and this may not actually be in the client’s best interest.
Choosing a source of unsecured business finance may seem simple, but as the basic rule of economics states, there’s no “free lunch.” In this context, the unsecured lending platform makes its revenue from lender commissions, and the larger the loan, and the smaller the share to entities referring clients, the more profitable it becomes.
While the resulting transactions fall short of being unethical, they are lacking in terms of client education and may end in decisions that will be regretted later. Meanwhile, from the referring broker’s perspective, unsecured business lending platforms will take over “ownership” of referred clients leaving them out of the picture. For SMEs and their financial advisors, the eventual outcome could be far from positive.
This begs the question of whether there’s a better solution, and Yuan Chong, Director of Zetara Finance Partners, believes that he has one.
Zetara Finance Partners believes that finding the best options available and exploring their consequences with the beneficiary on behalf of the financial advisors who refer their clients offers the smartest solution for all concerned. According to Zetara’s director, Yuan Chong, the SME should benefit, and the broker should remain fully informed of all interactions and retain their client. All it takes is an unsecured business lending expert who knows the market, and is willing to identify options and educate the prospective loan beneficiary on the financing packages available based on the business’s profile.
Zetara Finance Partners deals with the nitty-gritty business of identifying and assessing available unsecured loan options and ensures that the SME is informed of the impact its choices could have on the business’s future financial health. Meanwhile, the Finance Partner (broker or accountant) is kept informed of progress throughout and the client is returned to them once options have been investigated and conclusions drawn.
The key differences in Zetara’s model are the individualised attention each business referred receives, identifying options rather than offering cut-and-dried solutions, information sharing, and regular reporting to referring partners who are able to retain clients seeking assistance in an area they aren’t geared to serve. As a result, the SME can enter into a financing deal with “eyes wide open” while still enjoying rapid access to unsecured finance while its preferred broker retains its client.
To Yuan Chong and the brokers that make up his select base of Finance Partners, this is a win. The SME benefits, their brokerage of choice benefits, and Zetara Finance Partners benefits – all of this without any additional cost to the entrepreneur hoping to bridge a cash flow shortage or expand his or her business.
For more information visit the Zetara Finance – Funding Your Business Towards Success website or call their team of experts on 0482 619 996.