Only six months ago, commercial interest rates were in the 2-3% range. Now, they're in the 4% range; very soon, five will be the new four. Interest rates are rising, and there is zero we can do about it as a small business owner. Okay. So how best to protect yourself? Time and information. Information for you, the client, and time for the intermediary, 'us' (broker). Every funder will be moving. We have over 100 funders who use the Reserve Bank of Australia (RBA) and the swap rate as their ‘control’ interest rate. However, not all follow this...
What does that mean? Some of the Fintech's have futures agreed upon. Meaning, they might only have a rate change every three months, rather than every week. They're trying to grab the market at the moment. There's a number of them. They have come in with a market-leading product that is now on par with the Major banks, but a whole lot easier to apply for and get approved....
Right, that won't last forever. So what's next? Give your intermediary time and ask them to go through not just the big four, because if it was the big four everyone would just walk into the bank. There's so much more value by going deeper at the moment and identifying some of the different rates and product and the pros and cons of each.
Make sure you ask your intermediary this, because right now, as an intermediary, as a mover of money, we feel our service has never been this valuable because we have access to the entire market. Give your intermediary time and information. Ideally, if there are big purchases, tell us three months out. We know it doesn't always work like this, but the longer we have to work on something, the more value we can deliver. At the Matias Group, we have our own Logic technology that matches clients with every funder on the market... Not just every funder, but every trade finance, every asset finance piece, every car finance piece, every secured mortgage piece, crypto-lending, and that's why we've got close to 300 funders, including our privates. Time and information, right now, for you and also for us, the intermediaries could never be more important. Make sure you're educated and choose wisely, who you use to educate you.