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The National Australia Bank-owned digital lender has updated its income verification requirements, allowing eligible sole traders to apply with one year of individual tax returns and a matching Australian Taxation Office Notice of Assessment.
Applicants must have a continuously active Australian Business Number for at least two years and demonstrate a minimum two-year continuous profitable trading history.
Lending is capped at a maximum loan-to-value ratio of 80 per cent, with a maximum loan term of 30 years.
The offering is available through Ubank’s network of more than 17,000 accredited brokers, with the lender citing approval turnaround times of around two days for eligible applications.
Under the policy, applicants’ most recent financial year-end must be no older than 21 months. Eligibility, conditions and credit criteria apply.
Addressing a growing market
According to the Australian Small Business and Family Enterprise Ombudsman data, nearly 1.7 million Australians operated as sole traders in 2021–22.
Ubank head of broker distribution George Srbinovski told Broker Daily that the proposition was shaped by Ubank’s existing approach but would aim to address the needs of a segment of the market that was underserved.
“At Ubank, we’re focused on listening to brokers and solving real customer pain points. This new offering helps make home lending simpler for eligible sole traders, while giving brokers the confidence of a fast, digital experience,” he said.
“As a lender, we want to identify areas where we can make a real difference and deliver a product exceptionally well. We believe sole traders are a segment we can serve effectively while building on the strengths of our existing offering.”
Srbinovski added that simplicity was the aim in the proposition, recognising the diversity of borrower and circumstance in the segment.
“We’ve deliberately excluded more complex lending, such as complex trust structures and construction, because we want to focus on a segment we believe we can serve well.
“It’s about building on what we’ve already established at Ubank and giving brokers another option for their sole trader clients.”
Srbinovski also said that another part of Ubank’s approach to sole trader lending was in the technology architecture behind Ubank’s lodgement portal, Loanapp.
“Loanapp is central to our approach,” he said.
“We spent two years developing a bespoke version for Ubank, which will continue to underpin the application process for our self-employed proposition.
“The focus is on getting applications from brokers to us as quickly as possible, with minimal friction.
“We use electronic identity and verification checks to identify issues before an application is lodged, while application data can be transferred from aggregator CRMs to reduce manual work. Documents are also signed electronically, removing the need for paper.
“Technology helps streamline the process from application through to settlement, while our Australian-based call centre supports customers with setting up the app, connecting their accounts and arranging direct debits.”
[Related: Self-employed surge a golden opportunity for brokers: Pepper Money]
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