Non-Bank Business Lenders

Feedback To Non-Bank Business Lenders Survey

We asked the lender CEOs to make some general comments about the current non-bank business lending market. We stated, “Topics may include expectations for your lending activity over the next quarter; SME confidence; general market outlook & growth prospects of the non-bank business lending sector.”

“The outlook for the industry is healthy. Our experience shows that there are a lot of SME struggling to access funds from the banks, but they’re prepared to look for an alternative. Word is spreading that genuine credit providers are willing to lend quickly to help with business growth. The borrowers really are in a good position as there are now options available to them.”
– Wade Doblo, CEO, Business Fuel (Cash Advance) Pty Ltd
“Over the past 12 months we have witnessed a significant transition in the market with a high percentage of businesses now seeking credit through fintech lenders, such as GetCapital, as their first option. This is a change from 12 months ago and a clear sign that the fintech sector has broken into the mainstream. This move to ‘fintech as a first choice’ has also meant customers’ expectations of fintech lenders is higher. Customers are demanding the speed and efficiency of an online process but also the ability to talk to a relationship manager to help guide them through their finance options. The other trend we are witnessing is that SMEs are demanding greater choice of finance product and more flexibility in these products. The days of the single product lender are over. Lenders need to be relationship and solution focused in order to meet customers’ expectations. GetCapital has experienced rapid growth in the past 12 months largely because we have listened to customers and evolved our product and service offering to meet their needs.”
– Jamie Osborn, CEO, GetCapital
“Spotcap is optimistic about the outlook for the online, non-bank business lending sector in Australia. Our business is growing rapidly and we continue to see increased demand. SME awareness of the alternative lending sector is also increasing as the sector matures and more people become aware of these financing options. “
– Lachlan Heussler, CEO, Spotcap
“The regulatory capital environment continues to discriminate against lending to SMEs, in favor of funding for residential mortgages. Large corporations continue to increase payments days, putting more and more working capital pressure onto small and medium size business owners. In our travels around the country, the biggest obstacle to growth is lack of working capital. Fortunately, as per the ballistic growth in alternate finance products overseas, local business owners now have choices, never before available.”
– Steve Yannarakis, Director and Founder, InvoiceX
“SME lenders are growing more aware of options in the market. Diversity of funding and cost are high on their priorities. Flexibility in terms and customised solutions to the borrower are constant winners in the product market. If one thinks that SME lenders other than banks are lenders of last resort they are wrong. Margins will tighten over time and bank competitive pricing is there for the good quality credits.”
– Leo Tyndall, CEO, Marketlend
“At ThinCats, we aim to serve the very large underserviced segment of strong incorporated SME borrowers seeking larger loans for longer terms and would normally be bankable if they had enough real estate security.”
– Sunil Aranha, CEO, ThinCats Australia“Our factoring industry is growing dramatically with our factoring products and Broker Network connections who introduce most of our small to medium size business on a national base. Please refer to our Company overview and products available”
– Gavin Muir, General Manager, First Class Capital“There is growing number non-traditional lenders offering loans without the need for real estate security. We believe this has come about due to a combination of banks tightening and maintaining their credit rules back in the GFC and SME’s looking for/needing a higher level of service. Bank’s segmented service model often means, compared to, say, Fifo Capital, SME’s will receive a much higher level of relationship-based service. Higher levels of service mean a more satisfied client as we can approve and fund our clients at a more rapid rate – which, at the end of the day, is what our clients are needing.”
– Neil McMillan, Fifo Capital

“Awareness of non-bank lenders is growing exponentially.”
– Kevin Heydt, 365 Capital

“We see great opportunities in the alternative lending sector to enable the growth of the Australian SME community through our working capital facilities.”
– David Brennan, CEO, Kikka

“SME confidence is reasonable with expectation being for our lending book to increase as we focus on sectors that are not well serviced by the major banks.”
– Ian Smallman, CML Group Ltd

“SME is very much a high touch as you have to specifically and individually review each application. On a case by case apply specific conditions. And that is why Banks rather chase larger transactions and not spend time on transactions below $250K.”
– Antoine Laval MD, Agile Capital & Multi Finance

“We are confident in the products we have available for our clients and we are still seeing SME confidence to acquire equipment. Up to $75,000 exc. GST we can have approved within 24-48 hours as long as the ABN has been registered for 3+ years, has a clear credit file and the company director has equity in property and also has a clear credit file. No financials required for these transactions if acquiring core business assets such as IT, telco, plant and equipment etc.”
– Mitch Williams, Team Leasing

“The non-bank business lending sector will continue to grow with the attitude of the major banks. An exciting time for our Industry.”
– Donelle Brooks, Speedy Finance

“Strong outlook over next 18 months.”
– Trent Littleford, Manager of Operations – Interim Finance

“We are seeing an increasing number of SME’s seeking rapid finance from Private Mortgages Australia to help them with their business.”
– Tim Hart, Director, Private Mortgages

“With number of providers active in this space increasing to service the SME segment and general lack of financial literacy or experience of some of these clients we note a lot of people with multiple applications and active facilities. With better protection and regulation inevitable in the future for SME this should reduce. Our goal at FUNDA is not about making it easier for people to qualify but make it easier for the people who do qualify!”
– Nathan Wright, Funda

“SME bank lending will be limited to those with adequate security, particularly for new businesses.”
– Brenton Task, CEO, Financier Capital

“We are already experiencing considerable growth in 2016 and expect this to continue. One of the key factors in the growth of this sector is the ability to align the right products with the right clients, which ultimately reduces risk to lenders and clients alike. SME’s have always struggled to get a fair assessment of their opportunities and businesses, now however more are engaging in alternative funding to support their growth and realise their potential.”
– Blair Chinnery, CEO, BRS Finance

“Many SME’s are finding it tough in general and cash flow stress and working capital constraints are more problematic for SME’s than was the case in the past 2 or 3 years. Political uncertainty at home and economic instability in our region as well subdued condition in developed economies are all having an impact on SME’s.”
– Julie Andrews, Nova Business Finance

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