Innovation at the forefront of Lumi

This article was produced in partnership with Lumi.

Lumi’s Head of Third Party John Clifford talked to Mortgage Professional Australia’s Tracey Prisk about how the company’s latest innovations support business owners in the current environment marked by rising interest rates and uncertainty.

Clifford (pictured above) said the innovation behind the partner-led company’s two products – a revamped line of credit with great flexibility, and a rate-reducing business loan with Rate Ease™  –  set the company apart from others in the market.

“We want our customers to thrive, not just survive, therefore we reward lower risk with a better price without leaving higher risk businesses behind,” Clifford said. “We lend the Lumi way, which means we do the right thing by our customers! That’s how Lumi’s Rate Ease™ came about.”

Lumi aims to fund as many SMEs as possible

Clifford said the company’s chief goal was to help many small businesses achieve their goals by providing the necessary funding.

“We strive to say yes as often as possible,” he said. “This means some of our clients are subject to higher interest rates due to the higher risk we are covering.”

“However, when these clients exhibit good repayment behaviour, their rates usually remain high.

“We believe this is unfair, and that's why we've designed a rate-reducing business loan for those who need it most.”

“The rate is automatically reduced every four weeks for a period of 12 months when repayment promises are kept for Lumi business loans with Rate Ease™.”

Clifford said Lumi had also put a significant focus on revamping its existing line of credit.

Lumi’s line of credit the most flexible option

According to Clifford, the improved business line of credit is Lumi’s most flexible funding option to date and serves as the ultimate safety net.

He said it allowed businesses to navigate cash flow fluctuations by drawing down funds whenever needed, ensuring they paid interest only for the amount borrowed.

“This is particularly valuable in the current environment of uncertainty and escalating interest rates,” Clifford said.

“Business owners may miss growth opportunities by avoiding applying for business funding (it’s normal, they try to reduce their debt) but when opportunities arise, they may not have time to react.

“With our line of credit, if not utilised, no interest is incurred.

“However, if an opportunity arises, funds are readily accessible without the need for a new application process and they can keep accessing more funds as needed, the repayment period resets with each drawdown, making payments easier to manage and giving clients more control and transparency.”

Lumi can offer partners trail commissions ‘that could last forever’

Clifford said what also made Lumi’s line of credit stand out, and unique in the market, was that partners that offered Lumi’s line of credit to their customers not only received their commission up front once the client made the first drawdown, but “the trail commissions that we pay monthly could be ongoing forever”.

“As long as the client keeps the facility open, even after they renew it,” Clifford said. “This is a notable departure from the mortgage space, where brokers are sadly still facing clawbacks.”

“I think this puts us in a very, very different position. We are truly a partner-led business and believe partners should be rewarded for what they do.

Lumi’s mission is to shake up small business lending by providing fair, transparent, straightforward business funding where you and your clients are not required to jump through hoops, read between the lines, and be concerned about what's the catch? For more information about Lumi visit here.