In recent years, both the Australian and international money markets have experienced significant change, creating a fertile ground for the emergence and expansion of non-bank lenders. This surge can be attributed to several interconnected factors, such as evolving economic landscapes, regulatory changes, availability of private equity, and the shifting preferences of borrowers. This expansion has been particularly pronounced in the realm of commercial finance, with a diverse range of non-bank lenders catering to distinct target markets and offering innovative products, especially in the realm of commercial finance and commercial asset finance.

Expansion of Non-Bank Lending

In Australia, non-bank lenders in commercial finance have notably increased their market share, raising approximately $15 billion last year to fund loans that fall outside the stringent criteria of major banks. As a result, more businesses now have access to alternative funding solutions tailored to their specific needs.

Global Trends and Private Credit

Globally, the private credit industry has experienced substantial growth, with assets under management nearing $2 trillion over the past decade. Alternative asset managers like Blackstone and Apollo Global Management have been instrumental in this expansion, offering high-yield lending solutions that attract investors seeking robust returns. Consequently, businesses now have more opportunities to secure financing outside traditional banking channels.

The Role of Finance Brokers in Accessing Non-Bank Lenders

Access to non-bank lenders in commercial finance is often facilitated by specialist commercial finance brokers. The increase in non-bank lenders has been matched by a similar rise in finance brokers. However, not all brokers offer the same level of expertise. While most will gladly take on a deal, not all have the knowledge and connections to place it correctly.

This is a critical concern, as the finance broker marketplace is disorganised and fragmented. Choosing the right finance broker can determine the success of a financing deal.

This is where Convergent Capital Corp. steps in. Our role is to understand the strengths of different finance brokers and ensure your deal is placed with the right expertise. By matching businesses with the most suitable finance specialists, we maximise the chances of securing optimal funding solutions.

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The Opportunity Ahead

The rise of non-bank lenders in business finance and commercial finance presents an exciting opportunity for businesses seeking capital with greater flexibility and fewer restrictions than traditional banks offer. However, success in this evolving market requires expert navigation.

How can businesses take advantage of this opportunity?

• Work with an experienced finance broker who understands non-bank lenders.

• Explore customised loan structures suited to specific business needs.

• Seek out trusted advisors to ensure optimal deal placement.

The opportunity is there, and with the right guidance, businesses can thrive.

Partner with Convergent Capital Corp. today to ensure your funding success!

Additional Resources

• Explore our finance solutions – Growth Funding
• Explore our finance solutions – MBO Funding
• Explore our finance solutions – Asset Finance
• Explore our finance solutions – Debt Restructuring
• Explore our finance solutions – Acquisition Finance
• Why choosing the right finance broker matters

Disclaimer

Please note that the information provided in this article is for general guidance and informational purposes only. It is crucial to seek professional advice tailored to your specific circumstances before making any financing decisions.

The writer cannot be held liable for any actions or decisions made based on the information provided in this article. It is always advisable to consult with qualified professionals to assess your specific situation and receive personalised advice.