Denied business finance? Why Aussies are turning to non-bank lenders

Ian Chambers

Monday, 02 March 2020

You might assume that going straight to the bank for a business loan is your best move, but the truth is, traditional lending institutions are getting tighter with their lending criteria, leaving small business owners in the dark.

A massive 1 in 4 small businesses in Australia are denied finance. And, according to an ABS report, the most common barrier to successful business growth and development is lack of access to funding.

So, how can you grow your business the way you want if the big, established businesses are the only ones getting to ‘yes’? The more you have, the more you get, right? Wrong.

Valiant is shaking up the finance industry to make lending easier (and fairer) for Aussie SMEs having trouble securing finance with traditional lending institutions. If you’re put off by long-winded applications or have already felt the pinch from a recent rejection, let Valiant do the heavy lifting and simply wait for funds to arrive in your bank account in as little as 24 hours.

Get approved in 3 simple steps:

  1. Click here to get started and fill in a few basic details so we can understand your business goals.

  2. We’ll contact you to confirm your eligibility before starting the application process.

  3. Sit back while we do the heavy lifting and find you a competitive loan aligned with your business goals. Wait for cash to arrive in your account in as little as 24 hours.

A report from a well-known Private Funder found 29% of SMEs who do secure funds through banks say their business has been negatively affected by the long-winded process involved in applying for finance. It can take several months before you see any funding and that’s if you get approved at all.

Applying for finance unsuccessfully can also put a black mark against your name, which can be damaging to your reputation as a borrower when you need cash in the future. Taking out a business loan and paying it off on time can also improve your credit history and build trust with lenders, making you far more ‘creditworthy’ and increasing your borrowing potential for future credit requests.

But how do you get a ‘yes’ from your lender, especially as a small business, in order to grow and prove your creditworthiness? Is there a way to avoid undergoing hours of stressful paperwork, phone consultations and risking damage to your credit score?

How non-bank lenders are helping Aussie SMEs get approved, minus the hassle

Aussies are moving away from traditional lending for more streamlined solutions. Non-bank lenders are often privately-owned, but still highly regulated by ASIC. In addition, their business loans are much easier and quicker to apply for, as they don’t make you jump through loops and holes to get the cash you need.

Many businesses turn to non-bank lenders for reasons such as:

  • Being unqualified for traditional loans due to strict lending criteria
  • Needing access to funding quickly
  • Avoiding complicated and long-winded applications
  • Wanting more flexibility in rates and fees
  • Wanting more options

Non-bank lenders understand that SMEs are still growing, and are still on their way to obtaining high-value assets like properties and equipment. Sure, lending without collateral makes you a greater risk, but that doesn’t automatically make you unreliable—it’s your ability to successfully run a profitable business that non-bank lenders care about.

Rather than making you put personal or business assets on the line to secure your loan, non-bank lenders are more interested in your overall business plan, profit and loss statements, annual sales and financial statements. Unsecured finance also allows you to borrow money without collateral upfront, which is great news for businesses who don’t want to risk their assets being taken away or don’t have access to appropriate security to begin with.

So if you need funding fast, and don’t have time to wait around for a potential ‘yes’, let Valiant streamline your application and do the heavy lifting for you.

We compare a diverse suite of lenders including both traditional non-bank institutions and alternative lenders to ensure you’re getting a suitable product for your needs, at a great rate. Our service is free for you to use and doesn't affect your credit score whatsoever, so there’s no need to worry about risking damage to your credit history.

Better yet, we’ll do the paperwork and negotiation so that you can get back to building your business and snapping up sales. Don’t let big banks hold you back from your success. Get fast funding for your business needs, minus the headache.

Ian is our Director of Speciality Finance here at Valiant, with 40 years experience in the finance industry. He works closely with our private funders to support applications for speciality finance products, such as non-bank and No Doc secured loans.

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