Banks and Non-Banks Targeting Small Business Loans
If you use the level of frontline advertising numbers to gauge the interest in small business lending, you could be forgiven for thinking financial institutions are fixated on gaining their share of this lucrative market.
Look beyond the glossy advertising, heartfelt post COVID-19 radio and TV advertising, and repetitive social media spam and it’s a different story.
It’s no secret that institutions are looking at higher lending margins and business lending fits the bill. Promises of funding to get back on track after the pandemic provide encouragement to entrepreneurs who are looking to expand, consolidate debt or put some much needed capital into their enterprise.
Don’t be fooled. Business lending is as difficult to obtain as ever before with counter productive credit policy that is at polar opposites to all the carrots dangled in front of keen borrowers.
The broker community is more often than not given the task of securing these loans, and even the most experienced operators are having issues.
That said, it’s not all doom and gloom. The assistance of experienced mortgage brokers means that borrowers are looking outside the normal home for these loans and getting cost effective results in a timely fashion.
Most borrowers would never have heard of these lenders, yet are pleasantly surprised when their loan is funded at competitive rates in record time.
It just proves again the broker channel is all about best interest duties and results. It will be interesting to see what percentage of these loans are funded with the invaluable assistance of the broker community.
My tip is it’s well over 60%
Bigger, better, stronger.