Commercial lending that’s faster and simpler

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Recognising that busy brokers and their SME customers don’t want to spend precious time on a laborious commercial loan application process, ANZ is enhancing its Streamlined lending policy to help overcome these obstacles

IN A FAST-MOVING and complex market and an economy facing significant challenges, small to medium-sized businesses need to be able to adapt and react quickly to changing circumstances. In recent times, SME owners have been hit by labour shortages, supply chain problems and rising inflation that puts upward pressure on the costs of goods and services and the overall costs of running a business. The official cash rate has also increased 13 times in just 18 months, and the driving up of interest rates on residential property loans has had the flow-on effect of lifting interest rates for commercial property loans. But SMEs have shown their resilience and ability to adapt

New loan commitments, business finance by purpose (seasonally adjusted and trend), values, Australia

Sept 05

“Minimal documentation is required from a business owner [for a loan application], and a decision may be delivered quickly. This saves business owners time and effort, and a faster decision reduces the stress of waiting for an outcome”

Ivan Mioc, ANZ

through tough times, especially during COVID, and those that have come out the other side often have an appetite for growth and need access to timely and efficient finance to capitalise on business opportunities. This is where ANZ Bank can assist commercial finance brokers and their business customers. MPA talks to Ivan Mioc, general manager, ANZ Commercial Broker, who explains what the bank is doing to improve the lending experience for SME clients.

One of the largest and most well-resourced banks in Australia when it comes to business banking and serving the needs of small businesses, ANZ will soon enhance its Streamlined application process for commercial loans. Mioc says the Streamlined application process for business lending will be available to eligible businesses for secured lending of up to $1.5 million and unsecured lending of up to $300,000 (subject to qualifying criteria). “Minimal documentation is required from a business owner, and a decision may be delivered quickly,” he says. “The process saves business owners time and effort, and a faster decision reduces the stress of waiting for an outcome.” ANZ’s enhanced Streamlined lending application process for secured loans of up to $1.5 million will be available from 4 December 2023.

Applicants for secured lending will be required to supply one business activity statement (BAS) and an ATO Portal statement, while applicants for unsecured lending will be required to supply their four most recent BAS statements. Applicants may receive a decision in as little as two to three business days. Mioc says the potential benefits of the ANZ Streamlined application process include:

SMEs that are eligible businesses can benefit from this simpler and faster application process, regardless of the loan type, Mioc says. The process is aimed at new or existing business customers who are looking to either offer security as collateral for a secured loan or to obtain unsecured lending and where those businesses have operated for more than one financial year under their current management and ownership structure. “Commercial loans approved under the Streamlined process can be used for any acceptable business purpose, but we generally see secured commercial property purchases or refinances up to $1.5 million, or unsecured lending up to $300,000.”

Some of the biggest challenges facing ANZ SME customers right now are inflation, access to skilled staff, and supply chain issues, Mioc says. “In a high interest rate environment, brokers should stay in regular contact with their clients, as many are reviewing their current lending arrangements, and this is leading to restructure conversations that brokers can assist with.” Mioc says ANZ’s Rapid Refinance offering can also support customers with refinancing their business lending through a simple and quick process. “Every situation and loan scenario is different. By finding out about the challenges facing a customer’s business, brokers can work with bankers to determine the support required for that individual business.” He says post-COVID, many businesses have seen big growth in demand and activity. “ANZ is well positioned to quickly and easily support these businesses to grow, particularly via our streamlined lending processes and GoBiz offering. “One of the biggest trends in this sector has been the increased demand from customers to purchase their own commercial premises. The widespread trend of longer loan terms across commercial lending has made buying a premises more feasible in comparison to renting,” Mioc says. For example, a customer borrowing at an 80% LVR on a commercial property loan over 30 years may find that their repayment is not too much higher than, or is comparable to, the rent they pay. “They are also building an asset base for their future and have the certainty of knowing they will not have to move. Buying their own premises can also be assisted via streamlined processes such as ANZ Streamlined lending.”

Qualifying criteria apply to ANZ’s Streamlined lending and Rapid Refinance application processes. To learn more about these processes or other streamlined lending options available to your clients, contact an ANZ business banker or BDM or talk to ANZ about becoming a commercial broker.

Streamlined lending – the benefits and opportunities

Diversification into commercial broking

Published 27 Nov 2023

“There’s been increased demand from customers to purchase their own commercial premises. The widespread trend of longer loan terms across commercial lending has made buying a premises more feasible in comparison to renting”

Ivan Mioc, ANZ

Founded in 1835 and headquartered in Australia, ANZ is one of the four largest Australian banks and is ranked in the top 25 banks globally by market capitalisation. It employs approximately 45,000 staff and operates in 29 markets globally. ANZ serves over 10 million retail, commercial and institutional customers, with consumer and corporate offerings in its core markets and supporting regional trade and investment flows across the region. ANZ's purpose is to shape a world in which people and communities thrive. That's why it strives to create a balanced, sustainable society in which everyone can take part and build a better life.

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Value of business lending by purpose

Sept 08

Sept 11

Sept 14

Sept 17

Sept 20

Sept 23

$ billion

Construction (seasadj)

Construction (trend)

Purchase of property (seasadj)

Purchase of property (trend)

Source: ABS Lending Indicators, September 2023

ANZ’s Streamlined lending

Streamlined application process for business lending is available to eligible businesses to apply for secured lending up to $1.5 million and unsecured lending up to $300,000 (subject to qualifying criteria)

Minimal documentation is required from a business owner, and a decision may be delivered quickly

The process saves business owners time and effort, and a faster decision reduces the stress of waiting for an outcome

Minimal documentation is required in addition to the business credit application form to start the application process. Simplified processes for unsecured lending make it easier for eligible businesses to access up to $300,000 in unsecured lending (which may include an overdraft of up to $100,000). Businesses can apply by showing they have no current outstanding ATO debts with a copy of their ATO Integrated Client Account statement and their most recent BAS statement – but note that some business owners may also need to provide an ATO income statement.

Commercial loan purpose

Challenges facing business customers

Asked what ANZ is doing to make the commercial lending process quicker and easier for brokers and their clients, Mioc says turnaround speed is an important driver of whether a customer achieves their next big move or not. “Customers want to focus on running their businesses, not worrying about setting up their banking and loans,” he says. “Brokers who work to further understand customers, understand the problems they are trying to solve, and ultimately drive better customer outcomes, will often be able to obtain a faster outcome for customers.” Mioc says ANZ is committed to supporting its accredited commercial brokers by offering the right tools, expertise and solutions to help businesses start, run and grow.

“We have recently expanded our commercial BDM presence and run regular webinars to support broker education. We encourage our brokers to speak with their commercial BDM or banker; we’re always happy to help.” ANZ also offers a range of products and policies to suit the customer’s lending needs, whether it’s “our enhanced Commercial Property Investment Lending or our Streamlined or Rapid Refinance offerings”.

Faster turnaround times, removing barriers

If a broker is already retail accredited with ANZ, Mioc says they can talk to their retail BDM for a referral. “If they are already working in the commercial space but are not accredited with ANZ, their aggregator can help put them in touch with the relevant ANZ contact for their state. More information about how to work with us is also available on our website.

ANZ commercial broker accreditation

Disclaimer: This is general information. ANZ is not giving advice or recommendations, and we haven’t taken into account your customers’ needs, financial circumstances or objectives. You and your clients should carefully consider which ANZ products are appropriate for them and should seek appropriate independent advice (which may include property, legal, financial, taxation and accounting advice) before making any decisions, investing, or acting on it. Terms and conditions, fees and charges, and credit approval and eligibility criteria apply to ANZ products.

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Data from the MFAA Industry Intelligence Service 16th Edition report, covering the six months between October 2022 and March 2023, shows that more mortgage brokers are writing commercial loans. Compared to the October 2021 to March 2022 period, there was an 8.67% increase in the number of mortgage brokers also writing commercial loans. “We support and encourage residential brokers diversifying into commercial lending,” Mioc says. “For brokers, diversifying and having a broad skill set that includes commercial and asset finance is as much about growing their business as it is about offering a holistic service to customers.” ANZ’s data shows that approximately 35% of the retail applications it receives are from self-employed customers, representing genuine opportunities for brokers. Mioc says if a broker isn’t talking to their customers about their commercial lending needs, another broker will. He says ANZ wants to support accredited brokers who want to provide holistic financial solutions to their customers, regardless of whether they are for a business or personal purpose. “It’s important we help support brokers and their customers, and offering a ‘full service’ is an excellent client retention tool for brokers.” Mioc acknowledges that diversifying can be a challenging transition. He says that’s why education is so important, as is the support offered by ANZ BDMs and bankers. “We regularly host webinars and actively support aggregators’ broker education programs.” Education and professional development is also a focus at ANZ, Mioc says. “We continue to educate our BDM team to ensure they are in the best position to assist brokers with their requirements and to answer their questions thoughtfully.” ANZ has also increased its investment in its commercial broker channel, recognising its contribution to the overall business. “This means that our teams are involved with some exciting projects designed to improve the broker experience – watch this space.”

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