tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, July 13th, 10:20AM

Mortgages

rss
Latest Headlines

Book aimed at small businesses

Mortgage adviser Deepesh Chaudhary has turned his hand to helping small businesses.

Tuesday, October 10th 2023, 9:56AM 2 Comments

by Sally Lindsay

He has written a book titled ‘How to Buy the Right Business the Right Way’.

Chaudhary was inspired to write a book because it takes about two years to buy a business – from when a customer starts thinking about it to when they execute the deal.

“I have always had a passion for helping small business enterprise (SME) owners because I had felt the pain when I set up Auckland Business Solutions. It is a long cycle from initially getting the business idea to making it successful.”

He sees many people wish to start a business, but don't know what to do, how to do it and which business is right for them. “It is a really underserved market by banks and lenders in general.

“There's nobody to handhold. There is no real resource available, especially from the funding point of view. This book will help people understand the numbers and their financial capacity.”

Having worked at Westpac as a business manager from 2020-2022, Chaudhary dealt with nearly 1,000 small businesses and was able to help them, even though the bank did not have a specific portfolio for SMEs. During that time he learned how business operates. Lending for small businesses has now become a niche for his business.

“I know how to obtain business funding. As long as people can be helped and understand the numbers around their financial capacity, it makes life so much easier for them.”

He gives an example of one business owner who went to one of the biggest mortgage adviser firms in the country as a first home buyer. “The firm told him as he hadn’t operated his business for 18 months no bank would give him a mortgage and he would have to wait another 18 months to make an application.

“He approached me. I was confident I could get him into his first home with his past 12 months of business financials, the profit and loss (P&L) forecast and financials for this year.  He got the mortgage at a high LVR with a 10% deposit. He didn’t have a 20% deposit.”

Chaudhary says the myths floating around the mortgage advising industry need to be called out and flattened. The biggest problem, he says, is many advisers do not have business banking experience.

“Having business banking experience gives a next level of comfort when dealing with self-employed customers. Specialising in SME lending has been possible because I have that banking experience.”

Another example is of a client who worked as a handyman at a rest home with his wife. “He decided it wasn’t for him and he was no longer interested in the work.

“He set up a business and three months down the track, he and his wife wanted to buy their first home.  Because he was newly employed in his franchise business and although his wife was working full-time at the rest home, none of the banks would give him a mortgage. His own bank said he needed two years of financial history before it would consider his mortgage application. He was told repeatedly to go to a private lender.”

Chaudhary says by the time the client approached him, he was on the edge of defeat. He obtained a mortgage for the client by getting him to provide his business financials, P&L forecast, what guaranteed income could be generated, the franchise agreement and a statement on the franchiser’s credibility, packaged it together and presented it to the banks. It’s the difference between being approved for a mortgage or not being able to obtain one.”

Chaudhary says his book will be useful for business owners in similar situations. “Bank branches don’t want to serve them and the ‘big boys’ at the main offices want to write bigger deals in the commercial space. It is a market that is totally underserved.”

Tags: Mortgage People

« Will repealing the CCCFA be enough?New code for debt collectors »

Special Offers

Comments from our readers

On 10 October 2023 at 1:14 pm AdviserMan said:
Congrat's Deepesh, we need more forward thinking Advisers in NZ doing the great deeds we all do everyday.
Let's hope it is a best seller, and helps more Kiwis become successful.
Regards Geoff Peterson
On 10 October 2023 at 2:43 pm krish@mortgagesuite.co.nz said:
Well done and good luck with your book. Whole heartedly agree that not many mortgage brokers have business banking experience to understand how to fund business clients. In my 24 years as a Mortgage Adviser and having come from Corporate & Commercial banking background, I have helped many clients who were either declined by the banks or the brokers giving up. Brokers need to upskill themselves in order to provide the correct advice.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 11 July 2024 1:26pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com