Self Managed Super Funds

Self Managed Super Funds are now a very common funding vehicle, and ideal for this type of strategy. In fact many of our funders have a SMSF and use it for this very purpose, in addition to funds in their own name. If you have $500,000 or more to make available for lending, this could be for you. 

SMSF’s are designed to grow through prudent investment strategies, and this is one of those opportunities.  Plus unlike managed funds, etc, you can stop being a lender at any time.  If at a later stage you want to move to some other investment strategy, you simply let us know that you won’t be lending anymore. Once your current loans mature, you have all of your money back, plus your interest from those final loans, and you are free to invest wherever you want.


During the GFC, most ordinary super funds showed negative returns to their investors, where as our funders showed return of 15%pa…. a far cry from -2.1%pa, etc, which on average was all the big funds managed to deliver.   Even on a very good year, normal funds struggle to get over 12%pa.

The other beauty of funding short term business loans is that you are not exposed to share market volatility, exchange rates, individual company or industry woes, or even interest rate rises.   Our industry is solely dependant upon a stable real estate market, and general business confidence.   Even in a recession (or near recession as we have just seen), the demand for short term lending is still there, and the safety of your money (as a lender) is still preserved.   Admittedly, we do alter our lending criteria from time to time to suit the economic outlook of the day, but this is purely to ensure there is always a safety buffer for your money.

Don’t you hate researching a particular company and their stock, then you buy their shares thinking it is ripe for the picking and the indicators are all good, only to see the share price dive on the back of an unexpected company announcement, or the industry sector takes a hit.   Further more, a small investor (i.e.: someone with less than $10m) is so exposed to the tidal waves that the large investment funds can cause in the stock market.   I have been there myself…. I buy a great stock, and then a major fund decides to dump $100m of stock unexpectedly and it sends the share price south.   It is like rowing a dingy across a major shipping lane.   With short term business lending, YOU HAVE CONTROL.  The loan is in the name of your SMSF, and any volatility in such a short space of time in the real estate market is very minimal.

Easy… talk to your accountant or investment advisor first.   My personal experience was that I just had to alter my Trust Deed to reflect what investments I am making with my SMSF.   I used to trade shares, and when I started using my SMSF for short term lending back in 2004, I simply asked my accountant to alter the trust deed to remove share trading as the investment strategy, and insert short term mortgage lending.    Very simple, and totally compliant with all of the governing authorities… including the ATO and APRA.

Want To Get More Information ?

Our Investor Manager is waiting to speak with you.