A commercial finance lender has experienced rapid growth with its flexible financing option as the commercial space readies for expansion.
Maxiron Capital’s Flexi Rapid, a desktop-only valuation lending product aimed at commercial borrowers, has already garnered significant attention despite only being launched a few months ago, according to Iman Asadi (pictured above), director of lending at the nonbank.
“Lending solutions that offer such speed and flexibility tend to quickly become popular among commercial brokers, particularly in dynamic markets,” Asadi said.
“Flexi Rapid is a powerful tool that empowers commercial brokers to provide their clients with swift, flexible, and efficient financing solutions, thus enhancing their competitive edge in the market. It’s ideal for brokers seeking quick and efficient financing solutions for their clients, especially in situations where time is of the essence.”
Overall, the commercial finance sector has had a tough year.
After 12 rate increases in 13 months, 2023 has continued on from last year’s trend of increased cost of borrowing, which slowed borrower momentum. This resulted in the trading volume of commercial assets dropping by 45%.
However, the tide has likely turned after three consecutive rate pauses and forecasts for rate cuts on the horizon.
With the economy and inflation slowing rapidly, pent-up demand for commercial assets may see a strong investment rebound, according to the Commercial and Asset Finance Brokers Association of Australia’s August report that relied on Commonwealth Bank (CBA) research.
Parts of the commercial space have already started to grow with small business lending increasing 9.7% in March alone, while medium-sized business lending jumped by over 21.7% in the same period.
Herron Todd White’s August Commercial Property Clock – Industrial, which measures buyer sentiment of regions across Australia, also showed many areas are showing signs of recovery.
Capital cities such as Darwin, Adelaide, and Perth are in an upswing of activity while regional centres such as Townsville, Fraser Coast, and Bundaberg are at the peak of the market already.
Asadi said the commercial lending market was a dynamic and ever-evolving space, presenting numerous opportunities for brokers.
“These opportunities include assisting clients with property acquisitions, refinancing, and expansion,” Asadi said.
With the commercial property clock rising in both regional areas and cities across the country, commercial brokers may need products that cater to both demographics.
Flexi Rapid fits this bill offering several key features, including no valuation fee for properties in both metropolitan and regional areas, an LVR ranging from 60% to 70%, and approvals for loans of up to $2 million.
“Flexi Rapid is a powerful tool that empowers commercial brokers to provide their clients with swift, flexible, and efficient financing solutions, thus enhancing their competitive edge in the market,” said Asadi.
Asadi provided an example of Flexi Rapid in action.
A client from NSW required immediate funding to renovate a commercial property due to an impending property sale.
“The broker swiftly submitted the application, and remarkably, we were able to finalise the loan within just seven business days,” Asadi said.
Notably, the submission didn’t require a full property valuation; instead, Maxiron Capital relied on a desktop valuation with a LVR of 68%. The $300,000 loan amount was set for a term of six months.
“The client and broker were over the moon as they have never been through a private lender that settled a deal that quick,” said Asadi. “It’s a testament to Flexi Rapid’s unique features, such as rapid settlement times and no valuation fees, which can be a game-changer in the world of commercial lending.”
“The current state of the industry may vary based on economic conditions, interest rates, and regional factors,” said the leader from Maxiron Capital, which has signed on as social media sponsor for this year’s Australian Mortgage Awards.
“However, with the right products and services, brokers can thrive by addressing the unique financial needs of commercial clients.”
