Following on from a thought-provoking article in Mortgage Business from Andrew Way, Semper, on the current market being a “phoney economy”, a panel of industry specialists have come together to consider: are we in a state of market buoyancy or a misguided state of self-belief?

Listen to Nick Harper’s views here:

We all know that disruption breeds opportunity.
Here are some insights from Andrew Moulds, Head of Asset Finance, Lend, on where the opportunity is for brokers right now, and how to stay ahead of the game:

  • It’s all about agriculture: The agricultural sector is booming with a combination of fantastic weather conditions, the expectation of some strong spring rains, and the winter crops being close to the annual harvest. With the outlook so positive, a lot of those farmers are looking at spending money now.
  • There’s tremendous demand for equipment funding: Keep in mind there’s the equipment needed to support that harvest, such as earthmoving, trucks, trailers, motor vehicles, light commercial equipment, specialised agricultural equipment. In addition, there’s also the equipment required to manufacture the harvest. All this equipment needs funding.
  • The rise of secondary markets: There’s still some supply issues for us in transport and logistics so we’re still seeing the asset prices running quite high, and getting supplies is an issue. A lot of those operators are now looking at the secondary market to source assets.
  • Managing inflated asset prices: Make sure that you’re doing some loan structuring to try and either reduce term or minimise the loan payments so that the proposition you’re putting to your lender palatable. It’s really important to structure that loan so that the lender can see equity coming into the transaction, and equity throughout the term will enable you to get a better result with the lender panel.
  • Be aware of borrower red flags: Andrew cautions brokers to be aware of borrowers requesting capital raising on assets. Lack of borrower transparency is a really big red flag that the customer is looking to get working capital for survival, not for growth. If you’re not getting the data from the client about the purpose of the funds; stop, take stock, go back to that customer and get a really good deep dive as to what they need those funds for. Otherwise, you’re just going to spin your wheels working on a deal, it’s never going to get anywhere.
  • Capitalise on change: The current economic environment and political narrative are not only driving change in industry. They’re also driving change in society the way we’re behaving. Keep a keen eye on businesses that are responding to this shift, as they’ll invariably need finance to support growth.
  • Be the hero of your suburb: The sense of belonging and being local is stronger now than ever been. Get amongst your local community. Be that voice. Be that expert when it comes to all things finance, and you’ll not only be able to find opportunities today, it will pay dividends down the track.
  • Seek out innovation: Look at what’s happening around you and identify innovative operations. In particular, manufacturing, health, construction, energy, food, and technology are strong.
  • Stay ahead of the game: Businesses, lenders, and products are increasingly shifting toward technological platforms. It’s important to embrace and invest in technology now.
  • Find different ways to connect: Try different marketing mediums, like community groups on social media, to increase your local footprint.
  • Change your vernacular: Many people are still talking about when COVID ends. We need to change the vernacular to: how do we live with COVID and be ahead of that game?
  • Remain cautionary: There is a spike in new private lenders. Do some due diligence and make sure you’re dealing with reputable ones who have the right structures in place. Look at how they operate, what documentation they have and what compliance they adhere to.

Where Semper fits in:

Semper is a leading private lender that specialises in $2M+ structured finance for often complex transactions:

  • 1st mortgages from 7.74%p.a.
  • 2nd mortgages from 11.99%p.a.
  • Set rates independent of term
  • Suited to support businesses poised for growth via acquisition, or deleveraging by sale of assets

What you can expect:

  • Best-in-market rates
  • Referral fee paid up-front
  • Commissions paid at drawdown
  • Fast drawdown
  • Simple application process
  • Funding within 48 hours
  • Full back-end support
  • A seamless process with a personal account manager
  • Guaranteed compliance

Reach out today:

Kieran Gill | Sales Director
T: 1800 736 737 | M: 0419 122 192
E: Kieran.Gill@semper.com.au

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