The latest research from PricewaterhouseCoopers shows that private lenders /private lending loans now equate to 27% of all loans in Australia (as of 2018).
In recent years, non-bank loans have increased 15% year on year, while the market share of the big four banks has declined.
Diverse Funding Solutions are non-bank private lenders based near Sydney that can arrange a privately funded loan for you that’s much faster and more straightforward than the major banks and other mainstream lenders.
We provide our business clients with a range of personalised, fast and flexible finance options and private business loans.
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Read The Definitive Guide: How Does Private Lending Work in 2020?
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Private lenders / private lending loans are legal and the private lending market in Australia is growing. This growth has been fuelled by conservative bank lenders tightening their business lending practices.
Bank loans are becoming increasingly harder to get and banks can take weeks to look at new loan applications.
As a result, many Australian property developers and business owners can’t get the finance they need to survive, grow and prosper.
It’s now harder for small to medium-sized developers and businesses to get finance.
Did you know that poor cash flow is one of the leading causes of property development delays and business failure?
It doesn’t have to be that way if you can get the right finance solution for your property development or business needs.
That’s where a private finance loan from the private lending market can help.
The extremely poor conduct of the big banks and other mainstream lenders was brutally exposed in the 2019 Banking Royal Commission.
That conduct has also encouraged the growth of private lending in Australia.
Research from PricewaterhouseCoopers Australia shows that non-bank lending now comprises of over 1/4 of all loans.
The private finance market in Australia is also recording double-digit growth each year.
On the other hand, the market share of traditional lenders is declining.
More and more people are voting with their feet and walking away from big bank lenders. They are looking for the type of personalised solutions and service that private lenders can provide.
Private lending is fast becoming mainstream in its own right!
Check out: Non-Bank Lenders Explained – Why Choose a Private Loan?
DFS are private finance lenders that specialise in sourcing and structuring financial solutions for all types of business owners including property developers.
Many of our clients aren’t able to meet the requirements of mainstream lenders, or simply don’t have the time that it can take for other institutions to settle loans.
Our private lenders understand that each property developer and business owner (and their individual circumstances) are different.
We take the time to get to know our clients individually to find out about their needs and goals. We then structure a loan around your requirements and pair your situation with one of our lenders.
Our customer service is second to none!
When you take out a private loan with us, you’ll have the same account manager throughout the entire process. That means you’ll have only one point of contact who’ll fully understand your business finance needs.
We’ll provide you with personalised service and you’ll never have to explain anything twice!
We have a fast, hassle-free application process with no forms – now that’s real ‘low doc’ lending!
Business finance applications are assessed and approved quickly.
We can provide you with fast access to funds (the same day as you apply in some cases).
Firstly, we’ll consider the type and amount of collateral our clients can provide.
Secondly, we’ll present a finance solution of the best possible loan terms (interest rates, fees and other conditions).
Loans can be up to 100% of the value of the collateral our clients can provide via a secured (caveat) loan.
We work with over 200 private lenders!
That means we have options that other lenders don’t.
If a bank or other lender says ‘no’ to your loan application due to your credit history (or for any other reason), don’t give up. We can get you a ‘yes’ from one of our alternative lenders even for private lenders short term loans.
Don’t think that the only option left to you is using high-interest finance sources like credit cards or personal loans for your business needs!
Put simply, private money lenders like us at DFS have access to a pool of private funds from private loan lenders.
These funds can be approved for property developers and business clients who might not satisfy the strict lending criteria of mainstream lenders.
Finance problem: A company that owns a small suburban shopping centre needed to do major refurbishments to their premises. They needed to attract high-quality, long-term tenants.
Unfortunately, the extent of the renovations meant that many of the centre’s stores would have to be vacated for an extended period. The resulting loss of rental income would mean that the company would temporarily be unable to afford their loan repayments. But their bank wasn’t willing to adjust their loan terms.
Private lending solution: Frustrated, the company turned to the private lending market. Their private loan application was assessed and quickly approved. Their private lender assessed both the cost of the renovations and the forecast increase in value of the premises. The renovation was completed on schedule.
The company was quickly able to attract new tenants for the shopping centre. They then had the cash flow to easily make their loan repayments.
Finance problem: A Melbourne manufacturing company needed additional funds. They wanted to capitalise on an opportunity to expand their business. They required bridging finance until they could expand and increase their cash flow.
However, their mainstream lender declined their application for the additional funds. It didn’t meet their strict new lending criteria.
Private lending solution: To avoid missing out on the opportunity, the company found a private lending solution instead. Their private lender assessed the value of the collateral that the company provided as part of the finance application process. They also assessed the strong potential of the expansion opportunity. The private lender approved the expansion funds.
The manufacturing company now has more staff, more customers, and more profits!
Finance problem: A new Gold Coast property development company saw an opportunity to build an apartment complex. The Gold Coast is one of Australia’s fastest growing regions. The weather and the beaches make it a great place to live or visit.
The property development company approached the big banks and other mainstream lenders. But their funding applications were declined by all of them. That’s because the company wouldn’t be able to generate any income during the construction process.
Private lending solution: Refusing to give up, the company found a private lending solution instead. Their private lender assessed the land value and they approved the necessary building funds. The project was completed on budget and on schedule.
Units in the new apartment complex then sold quickly and the property development company made a huge profit on the project.
If you need finance and you’re finding it difficult to get, consider a private finance loan. More and more businesses are going for private lending and reaping the benefits of private business loans.
Contact us today to find out how DFS can help you.
The future of your property development project or your business could depend on it! We provide flexible finance solutions for clients all over Australia, including Sydney, Melbourne, Brisbane and the Gold Coast.
If the bank says NO, DFS can get you a YES!
