SALVEST : NON-BANK LIKE.

"World Monetary Markets has come to a grinding hault with banks have pressed the pause button on lending. Non Bank or CRED lenders are proactive sourcing solutions for developers in a time of rising rates, costs and a decline in banking appetite”. Anthony Ferraro

NON BANK LENDING- Non-bank lenders account for around 10% of total commercial real estate lending in Australia,  gained popularity in recent years, offering alternative financing options to property developers who may not meet the stringent criteria set by banks.

AUSTRAC expects this to grow by almost 10% a year through to 2024 with non-bank lenders offers greater flexibility, and better long-term outcomes for partners.

Non-bank lenders provide more flexible lending terms, quicker approvals, and a willingness to consider projects that might be deemed higher risk by traditional lenders.   

Ask these important questions :

1. what historical results have you achieved in lending?

2. what experience do you have in similar deals?

3. do you have available funds or will you need to raise this capital first?

The rise of non-bank lenders has been a significant development in the financial landscape for both developers and homeowners with key attributes including - 

Increased access to financing - these lenders often have more flexible lending criteria, allowing borrowers with unique circumstances or less-than-perfect credit histories.

Streamlined lending processes - as they leverage technology and data analytics to assess applications quickly, enabling faster approvals.

Diverse loan options - offering products tailored to the specific needs of developers and homeowners. These may include short-term construction loans, bridge loans, and specialised financing options -  solutions that align with unique circumstances and requirements.

Flexibility in loan terms - they may offer adjustable interest rates, interest-only periods, and customised repayment schedules.

Market competition and innovation - the rise of non-bank lenders has increased competition in the lending market. Borrowers can benefit by having more options and potentially more favorable terms.

    

HOME OWNERS considerations: 

Reputation and credibility- look for reviews, testimonials, and feedback from other borrowers. Check if the lender is licensed and regulated.

Interest rates and fees - Non-bank lenders often charge higher interest rates and fees due to the increased risk. Evaluate the interest rates, fees, and any additional costs. Compare these rates with other lenders, consider the impact on your overall financial situation and ability to repay the loan.

Loan terms and conditions- Review the loan terms and conditions, understand the repayment schedule, including the duration of the loan, interest rate adjustments, and any penalties or fees for early repayment. 

Transparency and disclosure - expect this regarding all aspects of the loan. 

Customer service and support - consider their responsiveness, accessibility, and willingness to address your inquiries or concerns.

Financial stability and reliability - ensure they have the capacity to fulfill their commitments throughout the loan term. Look into their financial standing, track record, and stability in the lending industry.

Professional advice: Consider seeking advice from a financial advisor or mortgage broker who can help you evaluate non-bank lender options.