Lending solutions for the self-employed

Self-employment is a popular option for many Australians. Data from the Australian Bureau of Statistics reveals there are currently 2.1 million self-employed workers across the country – a figure that is likely to rise as people increasingly look for flexibility and autonomy in their work.  

The self-employed workforce accounts for a sizeable portion of the working population, and yet has historically endured more than its share of challenges, particularly when it comes to sourcing funding. 

RedZed was set up 15 years ago with the aim of bridging this gap by arranging flexible loan options for the self-employed who didn’t necessarily conform to the traditional bank lending criteria, says Chris Calvert, executive general manager of distribution. 

“With the self-employed, you're not dealing with a standard employee who presents their most two recent pay cheques to the bank to secure their loan. RedZed is focused on delivering the optimal customer experience by working with brokers to provide flexible loan options for the self-employed with a common-sense approach to decisions,” Calvert says.

Record growth and expansion

Since its inception in November 2006, RedZed has provided more than 6000 self-employed borrowers with residential and commercial loans, working directly with customers and their accountants, as well as a network of third-party brokers. 

In August, the company celebrated the milestone of A$5 billion in loan originations, with the pandemic heralding an exceptionally busy period in the self-employed lending segment. 

“It's certainly a growing sector and the life blood of the economy,” Calvert says.

Last year was also significant for RedZed. In December, it became the first organisation globally to process mortgages through the SAP Cloud for Banking platform, as part of its focus on scalable and flexible technology to improve efficiencies for staff, brokers and customers. 

Timely, tailored solutions

“For the self-employed who don’t always comfortably fit a bank’s lending criteria, RedZed offers a more personalised approach. The team often helps public practitioners connect their small and medium enterprise clients with lending solutions,” Calvert says. 

“It might be that an accountant has a client wanting to borrow some money to pay off a tax debt or wanting to expand their business – for example, purchasing business equipment. In such situations, a timely response is typically the customer’s highest priority. 

“These are all people who have got businesses to run and time really is of the essence when they want to borrow. We are set up to work with self-employed customers in a flexible, timely and efficient manner,” Calvert says.

Click here to contact RedZed for more information.

RedZed Lending Solutions Pty Ltd ABN 31 123 588 527 Australian Credit Licence 311128. Terms, conditions, and fees apply.