Small business finance: Non-banks vs. banks
With over 10 years of experience, the team at Naritas understand the hassle of jumping through the hoops to just apply for a business loan at a bank; let alone getting an approval.
What is a non-bank commercial lender?
Essentially, a non-bank lender is a lender that’s not a bank, credit union or building society. It has its own source of funds, which it lends out with a margin for profit.
A non-bank lender may also be a company or individual (as is becoming popular with P2P) who have cash or borrow money from a bank at wholesale rates and then lend that money with a profit margin added.
What are some of the key differences between banks & non-banks for small business borrowers?
|Loan amount||Borrow as little as $1,000 or as much as $500,000+||Banks actively court larger loans & borrowing less than $50,000 is cumbersome|
|Application process||Easy application process with a decision in as little as 5 minutes||Tiring process and excessive paperwork. Usually takes weeks for a result|
|Criteria||Small and new business friendly. Bad credit considered||Business must be established for 2 years+ with extensive proof on profitability.|
|Repayments||Flexible to fit your budget||Fixed large repayments|
|Money as fast as the same day||Yes||No|
|Loans can be approved with no verification of financial statements||Yes||No|
|Loans can be approved with no verification of tax returns/BAS||Yes||No|
|Approval criteria designed for small businesses||Yes||No|
How do I get assistance with getting approved?
The team at Naritas are experts in delivering timely guidance & commercial finance approvals. We have over 100 lenders on our panel & a high quality team of dedicated commercial credit advisers to steer you efficiently through the approval process.