ING announces changes to commercial SME lending

The bank has announced increases to its LVR for commercial SME lending. Effective immediately, the changes will bring the new maximum LVR to 80 per cent.

Previously, the maximum LVR was broken up into different rates, ING listed as:

• Industrial (60 per cent)
• Retail (65 per cent)
• Logistics (70 per cent)
• Office (75 per cent)
• Mixed use (75 per cent)
• Residential for acceptable business purpose (75 per cent)

Ray Esho, national sales manager for SME lending at ING, commented on the announcement, driving home how the initiative is aimed at supporting small businesses.

“I’m very pleased to announce these changes. We want to do more to help small businesses, and this is one of more changes to come to make it easier for SMEs to choose ING for their property funding,” said Esho.

“We’ll continue to source broker feedback as we enhance our SME offering, with the aim of always offering simple, transparent policies, a great origination experience and the right sales and support teams – ultimately driving the best outcomes for customers.”

Speaking to Broker Daily, Esho discussed how brokers are consulted when introducing changes. This relationship helps to keep both broker and consumer engaged.

“We speak to brokers every day. We view brokers as the voice of customers, and we’ve heard their feedback loud and clear. We recognise there’s an appetite for SMEs to do business with us which is why we’ve reviewed our policy settings – and will continue to do so. We’ve always valued broker feedback and will continue to encourage it,” he said.

Esho also drove home the small business focus of the initiative, and how it’s becoming ever important as the number of these organisations grow.

“By increasing our maximum LVRs, we’re able to cater for more small businesses requiring commercial loans with ING,” he said.

“According to the ABA, total commercial lending grew 6.5 per cent between April 2023 and April 2024. We see the SME lending space as an opportunity for us to increase our market share via our broker network.”

There are challenges that SMEs may run into when searching for a loan. While the circumstances will determine the challenges, there are some trends to be examined.

“It’s no secret economic pressures have made things tougher for SMEs. A recent study by MYOB indicated a downturn in SME economic performance despite the wider economy showing resilience. We recognise the vital role of SMEs in Australia’s economic health and driving innovation and we want to help, with greater flexibility to support their business operations,” Esho said.

[Related: ING offers cashback for energy-efficient homes]

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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