New Zealand’s small and medium-sized enterprises (SMEs) are increasingly turning to non-bank lenders as traditional banks tighten lending criteria. This is in part due to heightened capital requirements, ESG considerations, and economic uncertainties. This shift towards non-bank lending is evident, with the sector growth of 51.1% from 2018 to 2023 and an additional 4.4% in 2024, reaching a market size of NZ$1.3 billion.
Advantages of Non-Bank Lenders for SMEs:
Agile Decision-Making: Non-bank institutions can adapt swiftly to market changes, offering timely solutions to pressing financial needs.
Flexible Loan Products: Non-bank lenders offer tailored payment structures and terms that accommodate diverse business needs.
Less Demanding Credit Assessments: Alternative documentation options, such as bank statements, are accepted.
Reduced Security Requirements: Some non-bank lenders offer unsecured loans up to certain limits, easing the burden on businesses lacking substantial collateral.
Lower Equity Requirements: Businesses can access funding without significant equity stakes, facilitating growth opportunities.
Rapid Approvals: Simplified application procedures lead to quicker funding decisions.
Auckland Finance Offers
Cornerstone Products & Solutions
- Commercial Loans
- Asset acquisition in Civil Construction and Transport. Including funding older equipment with low/no deposit, retaining clients working capital.
- Working Capital Advances, secured by satisfactory tangible assets
- Short Term Bridging Finance
- First or Second Mortgage security
- Interest-Only arrangements, up to 12 months
Service Underpinnings – The ‘Commonsense Lender’
- Fast Approval Processes: Streamlined procedures can provide quicker access to funds.
- Flexible Lending Criteria: Tailored solutions that consider the unique circumstances of each business.
By proactively exploring and understanding these alternative financing options, you can better support your clients in securing the necessary funding to sustain and grow their businesses during these challenging times.
If you would like to discuss this further or need assistance in identifying suitable non-bank lending partners for your clients, please feel free to reach out.
Difference Maker Moment:
A registered Earthmoving company with experience boasting over 10 years hit a fork in the road when its sole director had a matrimonial split. Property equity was removed from the balance sheet and despite winning a large project with year-round work with steady cashflow, the company was no longer deemed bankable. The client demonstrated a track record, verified the workflow and AFL were able to fund the required assets to deliver on this project and beyond.
Auckland Finance supports skilled operators.