Why you should consider a Non-Bank Lender for your Business Finance needs
Whether you're looking to fund daily operations, expand your offering or simply smooth out cash flow disruptions, access to Business Finance is essential. Traditionally, many businesses have turned to banks for loans, but in recent years, non-bank lenders have become a strong alternative, and for good reason!
With tailored financial products and a more flexible approach, non-bank lending is growing rapidly across industries and becoming a preferred option for small and medium sized enterprises (SMEs). But what exactly is a non-bank lender, and how can they support your business?
What is a Non-Bank Lender?
As the name suggests, a non-bank lender is a financial institution that provides credit or funding outside the traditional banking system. These lenders don't hold banking licenses like traditional banks do, but they are still regulated and operate legally in Australia.
Non-bank lenders come in many forms, including online finance platforms, peer-to-peer lenders, private financiers and alternative funding providers. Their focus is often on speed, flexibility and servicing businesses that may not tick every box a bank requires.
So why are more businesses turning on them? Let's break it down.
8 Key Benefits of Non-Bank Business Finance
1. Faster Approval Times
One of the biggest frustrations business owners face with traditional finance, is how long it can take to get approved. Banks are known for paperwork-heavy processes and lengthy reviews.
Non-bank lenders, however, are often faster and more efficient. Because they aren't burdened by the same red tape, they can make quicker decisions, sometimes within 24-48 hours. If you need finance in a hurry, this can make all the difference.
2. Flexible Loan Terms
Non-bank lenders have more freedom to offer loan structures that align with your business's unique needs. Whether it's a customised repayment plan or a flexible credit facility, these lenders can adapt their offerings, rather than forcing your business to fit into a rigid mould.
This flexibility helps businesses manage cash flow more effectively and borrow on terms that actually make sense for them.
3. More Accessible for Small Businesses
Securing finance from a bank can be especially tough for small businesses, especially those without a long credit history or substantial assets. Non-bank lenders are often more willing to work with younger or riskier businesses, opening up funding options that would otherwise be out or reach.
If your business is growing or just starting out, a non-bank lender could be the key to unlocking the finance you need.
4. Innovative Finance Solutions
Non-bank lenders often lead the way in offering modern, adaptable finance options. For example, products like invoice finance, equipment finance or short-term working capital loans are increasingly popular.
These options can help free up cash tied to unpaid invoices or fund equipment purchases without dipping into reserves, all while keeping your business moving forward.
5. Easier Eligibility Requirements
Where banks tend to have strict eligibility rules and high credit standards, non-bank lenders can be more accommodating. They're often open to working with businesses that have fluctuating revenue, newer credit histories, or even previous finance knock-backs.
This makes non-bank lending a practical solution for a much wider range of businesses.
6. Personalised Service
Because they're typically smaller and more specialised, non-bank lenders often provide a more personal experience. They're not just ticking boxes, they take time to understand your business and build solutions around your needs.
Many operate with a partnership mindset, focused on helping your business succeed rather than just issuing a loan and moving on.
7. Diverse Funding Sources
Unlike banks, which usually rely on deposits for lending capital, non-bank lenders often draw on a mix of private investors, institutional funds and wholesale credit sources.
This diverse funding base can mean they're more resilient, and more willing to lend, especially during times when banks may be tightening their belts.
8. Better Adaptability to Market Trends
Banks tend to move slowly, bound by layers of approval and legacy systems. Non-bank lenders, on the other hand, are agile and better equipped to respond to market trends or economic shifts.
Whether it's adopting new fintech, adjusting to changing business conditions, or rolling out new products, these lenders are often the forefront of innovation in finance.
Is Non-Bank Lending Right for your Business?
At RLA, we work with a wide network of both banks and non-bank lenders to help you find the right finance solution for your business, whether you're looking to boost cash flow, invest in equipment or fund your next stage of growth. With over 35 years' experience in North Queensland, we understand the local business landscape and tailor our services to support your goals.
If you're exploring non-bank lending or want expert guidance through the options available, our term is here to do the hard work for you, from finding the right product to managing the application process and follow ups. Discover how RLA Finance can help move your business forward.