Finance and Coffee sat down with Ryan Gair, CEO from Rate Money, discussing the lender's rapid growth and unique business model since its founding in 2019.
Rate Money has experienced exponential growth, escalating from approximately 15 franchises to 41 across the Eastern seaboard (Queensland, New South Wales, and Victoria). Their current goal is to reach 55 "high-performing" franchisees, with expansion planned for South Australia and other key locations. The company reports over $11 billion in total settlements since inception, with $9.7 billion settled on their own product, and $4.3 billion of funds under management.
The core of Rate Money's strategy is specialisation. They exclusively focus on AltDoc (Low Doc) and self-employed lending, differentiating themselves from competitors who offer a wider, less specialised product range. This niche focus helps streamline their marketing, messaging, and target clientele.
Rate Money operates as a mortgage manager, allowing them to offer bespoke products not available through third-party channels. Key examples include:
Alt Doc Loans for self-employed Australians
Construction Low Doc Product: They were one of the first to market with this highly sought-after product.
One-Year Tax Return Product: Designed to compete with major lenders while catering specifically to the self-employed customer.
Customer-Centric Fees: Their prime Low Doc products typically feature no application fee, no valuation fee, and no risk fee, providing a streamlined and predictable process for the customer.
Significant Growth and FocusExclusive Products and Unique Value
📢 Immediate Opportunity: Rate Money is Actively Seeking Brokers
A major takeaway from the interview is Rate Money's current recruitment drive. They are looking for experienced brokers (typically 2-5 years in the industry) who are ready to take the next step and grow their business into a high-performing franchise.
Rate Money Head Office is positioned purely to support its franchisees, offering comprehensive assistance in:
Infrastructure: Setting up the necessary systems and processes.
Compliance: Providing full training and support to ensure all deals are processed correctly.
Team Building: Assistance in building out sales and credit/admin support teams.
Business Development: Extensive sales, marketing, and local area marketing training, including access to B2C leads from an upcoming major media push.
The company views its relationship with franchisees as a true business partnership, providing the tools and products needed for brokers to stand out and build a sustainable business within the profitable AltDoc space. They even noted that several brokers who previously referred business to Rate Money have converted to become successful franchisees themselves.