It’s true! The private lending market is evolving rapidly, and small business is turning to it in droves.
Small and Medium-sized enterprises (SME’s) make up around 2.4 million businesses and generate over $700 billion of our output according to the Australian Productivity Commission*. That’s a huge number of operators and an even bigger list of needs when it comes to running a smooth and effective business. Especially when it comes to finance!
One in six small to medium businesses seek finance every year*, which is a lot when you consider how many SME’s you pass on the way to work. They are doing this to grow their business and as the backbone of the Australian economy it is the private business lending sector that is meeting their need. With the ability to secure a loan with non-traditional forms of collateral, the product range is vast when it comes to private borrowing. Throw in skilled brokers who will help with confidence and product awareness and the outlook is prosperous after the devastating blows felt during 2020.
Access to funds for SME’s grew increasingly hard during the long-term restrictions imposed due to COVID with extensive applications processes, slow customer service and strict lending criteria. Since then, a report by RFI Global found 70% of SME’s in Asia-Pacific indicated they are not satisfied with access to credit provided by traditional banking and as many as 44% of them are considering non-traditional options. This trend is driven by competitive interest rates, speed of access to funds and flexibility in repayment options. All capabilities that Private Business Lending boasts.
What is Private Business Lending?
Essentially Private Lending is an option for small business owners that helps them to grow their enterprises, get over problems with cash flow, finances expansion plans or expedite hurdles that arise in the business cycle. Unlike traditional lenders, the process of private business lending works fast , saving valuable time when running a small business.
Higher approval rates and access to cash (as soon as the next day!) are huge benefits without a focus on credit checks or convoluted lending criteria. Sounds risky? It’s not. Safety and security is still assured as non-bank lending is governed by the Consumer Credit Code, lending regulations set out by ASIC and all operators are require to hold an appropriate license.
So what options does Private Business Lending offer a small business seeking fast finance?
There’s a wide range! And we recommend talking to us at Equity Tap about an option to suit you. With solutions that include bridging loans, caveat loans, 1st mortgages, 2nd mortgages, equity release loans and more, the ability to unlock funds is now easier than ever. At Equity Tap we ‘tap’ into your equity and give you immediate access to business capital so whether you:
- have Sold a property but need the surplus cash right now
- are asset rick but cash poor
- have found a property to buy but need bridging finance
- are waiting on settlement and need funds now
Equity Tap can arrange loans from 100k to $10m that are across 1 month or up to 12 months. All with no hidden fees or charges.
We do this because we know how important it is for small business operators to do what you do best, run your business. Our process is easy because we want your life to be easy!
Talk to one of the Equity Tap team about how we can turn your real estate into an ATM for your business by tomorrow.
Ready to be preapproved? Apply for an Equity Tap loan now.
Read more:
When the bank says “NO”, what’s next?
Why Private Business Lending fuels the economy