In a tougher lending market, more clients are falling outside standard credit policy.
For brokers, that means more clients with circumstances that do not fit neatly into traditional lending models. They may be self-employed, carry ATO debt, have recent arrears or defaults, be refinancing out of a private loan, or simply have an income structure that is difficult to assess through a standard scorecard.
Complex circumstances don’t always tell the whole story.
In many cases, there is an explanation behind circumstances, a viable income story and a practical path forward. The challenge is finding a lender prepared to look beyond the headline numbers and assess the circumstances.
This is where specialist lending can play an important role.
Rather than relying solely on automated scorecards or standard servicing criteria, MA Money considers the broader circumstances behind the application. That may include what caused the borrower’s financial pressure, how their current position has changed and whether the proposed loan creates a more sustainable outcome.
For self-employed clients, this flexibility can be particularly valuable.
Business income is rarely perfectly consistent. Seasonal trading, delayed customer payments, recent business growth or temporary cashflow pressure can all affect the way income appears on paper. MA Money can consider specialist applications from borrowers with an ABN from six months and GST registration from day one, along with scenarios involving ATO debt and business-purpose cash out.
Credit impairment can also be considered more broadly.
Defaults, mortgage arrears, recent credit events, discharged bankruptcies and Part IX or X agreements being paid out may all fall within specialist lending policy, subject to individual assessment. In the right circumstances, debt consolidation can also provide an opportunity to bring multiple liabilities, including ATO debt or private loans, into a more manageable structure.
For brokers, the opportunity is to look beyond whether a client fits standard policy and instead ask whether there is a workable lending solution.
A borrower may have experienced a difficult period because of divorce, illness, a change in employment or business cashflow pressure. Their credit history may show the impact, but this does not always reflect their current capacity or future position.
MA Money’s specialist lending approach is designed to help brokers work through these more complex scenarios, with common-sense credit assessment, BDM support and 48-hour conditional approval (subject to satisfactory supporting documentation).
Because in a tougher lending market, complex does not have to mean unworkable.
Have a complex scenario? Speak to your MA Money BDM.
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Information for broker use only. This article is of a general nature only, does not constitute financial, tax, legal or credit advice, and does not take into account the personal objectives, financial situation or needs of any individual. It does not constitute credit assistance as defined under the National Consumer Credit Protection Act 2009 (NCCP Act). Brokers are independently responsible for complying with all applicable obligations under the NCCP Act. You should seek independent advice from a licensed professional before making any financial decisions. Applications for credit are subject to eligibility and lending criteria. Fees, charges and T&Cs apply (available on request). MA Money Financial Services Pty Ltd ACN 639 174 315 Australian Credit Licence 522267.
