Why Non-Bank and Private Funding

Banks are built to lend against a scorecard. Non-bank and private lenders are built to lend against a deal. For developers and asset-backed borrowers, that difference is often the difference between doing the deal and missing it.

What non-bank funding can do that a bank often will not

• Consider higher leverage, which preserves your equity and can lift return on equity.
• Move faster, because the credit decision sits closer to the deal.
• Flex on presale, structure and security where the deal supports it.
• Read the story, not just the score.

How non-bank lenders assess a deal

A non-bank lender starts with the asset and the security position, then the credibility of the exit, the track record of the sponsor and the headroom in the feasibility. Gearing is measured against value and, on a development, against total development cost. Because the assessment is deal-led rather than policy-led, a sound but non-standard transaction can get a hearing it would not get inside a bank credit box.

Commercial finance is regulated differently to consumer credit

The funding we arrange is for business and investment purposes, which sits outside the consumer credit regime that governs owner-occupied home loans. The Australian Securities and Investments Commission sets out how credit is regulated in Australia, and the Australian Government summarises funding options for businesses. Bottom Line Finance arranges commercial, business-purpose finance only.

The trade-off, honestly

Non-bank capital usually costs more than a bank rate. The point is not to pay more for its own sake. It is that the right structure, at a higher rate, can deliver a better bottom line once you account for leverage, speed and the deals it lets you do. Price is what you pay. Value is what you get.