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The offering, which is available to new and existing RedZed customers, allows borrowers to opt in to earn PayRewards Points on their loan, although an additional interest rate applies.
There are no minimum spending requirements or caps on points earned. RedZed said a borrower with an average loan balance of $800,000 over a year could earn up to 200,000 points.
Points can be redeemed against business expenses and bills, helping borrowers manage cash flow, or transferred to 17 airline and hotel partners.
These include Qantas Business Rewards, Virgin Australia Business Flyer and Singapore Airlines KrisFlyer.
Grant Austin, CEO of pay.com.au, said the partnership would give self-employed Australians another way to earn rewards from their existing financial commitments.
“Managing cash flow is a top priority for self-employed Australians,” Austin said.
“We’re excited to partner with RedZed to extend the benefits of our PayRewards ecosystem to their customers, giving them another opportunity to earn rewards from existing financial commitments that can be used for business expenses, everyday purchases or a well-earned holiday.”
RedZed chief sales and marketing officer Natalie Irvine said the offering was aimed at providing additional value to the lender’s self-employed customer base.
“Our customers are small business owners who work incredibly hard to build something of their own, and we’re always looking for ways to give them more value and support them beyond the loan itself,” Irvine said.
“Our partnership with pay.com.au is another way we can reward our customers while continuing to do what RedZed has done for the past 20 years: back self-employed Australians and the businesses they’ve worked so hard to build.”
The partnership coincides with RedZed’s 20th anniversary. Founded in 2006, the lender said it had provided $15 billion in finance to more than 36,000 self-employed Australians across residential, commercial and self-managed super fund lending.
Rewarding borrowers
RedZed is the latest lender to explore rewards as a way of adding value to its loan products.
Most recently, Everyday Rewards partnered with home loan technology platform Middle to offer members up to 250,000 points when they settle an eligible mortgage through a broker connected by the platform, alongside annual rewards for up to five years.
Launched on 5 November, the arrangement covers eligible property purchases and refinances across a network of more than 60 lenders, including Australia’s four major banks.
Prior to that, SME lender Prospa came out with its own proposition, offering eligible businesses up to 500,000 Qantas Points per loan when taking out a Prospa Small Business Loan or Business Loan Plus.
[Related: Top burdens on SME cash flow revealed]
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