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Out with the old and in with the new. Non-bank funding may be the smarter option for your ASX listed business.
Advising an ASX listed company? 5 tips you need to know about non-bank funding
03 February 2021
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4 minute read
It’s the start of a new year and now the start of a new month, a time where new business ventures, acquisitions and growth plans are on the table.
Now is the time ASX listed companies are looking to raise capital and investigate the commercial lending options most beneficial for future growth. The process of sifting through a myriad of funding alternatives can be a time consuming exercise for industry professionals representing ASX listed companies. Together with the rise of non-bank lenders, accountants and financial advisors of ASX listed companies are challenged with ensuring they are recommending the best commercial funding solution for the success of the business.
What is alternative lending?
Alternative lending, or non-bank funding, has become an increasingly attractive solution for ASX listed businesses looking for acquisition financing, growth capital and other working capital requirements. Non-banks are financial institutions who provide users or businesses with easier access to obtaining loans from specialist banking professionals outside of the standard banking sector.
Here are five reasons non-bank funding is likely to meet your business needs in an ever-changing environment.
1: Unique loan structure and flexibility
The last 5 years has seen traditional banks shifting towards tighter lending criteria, thus triggering the rise of non-bank lenders to fill the ‘funding gap’ following the high demand of SME’s and ASX listed businesses seeking capital.
Known for being more nimble than traditional banks, non-bank lenders offer unique loan structures and long-term flexibility, where alternative financing is becoming the go-to for companies who fall outside of conventional bank criteria or simply want more flexibility with their loan.
2: Shorter process, not as time consuming
Non-bank funders are much smaller organisations with less bureaucracy, thus enhancing the efficiency of their work and communication with borrowers.
This becomes an easy alternative to the lengthy, time consuming process of obtaining capital from one of the big four banks. Whilst due diligence processes are still required, greater timeline clarity and tailored customer service is provided with non-bank lenders.
3: Larger loan sizes
Non-bank funders often provide a broader loan scale due to less regulatory requirements needed to access capital.
Non-bank lenders, such as ORB Alternative, with a strong aggregated portfolio of funding sources have the capacity to meet demands up to and over $25 million, meaning ASX listed companies do not have to worry about the confinements of traditional bank thresholds.
4: Streamlined application process
An easy, pain-free online application process is what to expect when applying for funding from a non-bank lender.
Forget pages of forms and mountains of records, all you need to provide is general business information and financial information (revenue and profitability). Avoiding the need for traditional paper-based correspondence enhances the efficiency of settling funding requirements.
5: Tailored service
When navigating a rapidly growing commercial lending market, it is important to make sure you will receive support from your lender depending on the interests and ambitions of your business.
Whilst traditional loans are not often tailored to suit the needs of your business, a non-bank might be able to increase the loan amount or shift terms of the loan, aligning with the interests of the growing business.
Unlike existing non-bank funding, ORB Alternative is dedicated to professional service providers who require a funding partner to support business growth for their ASX listed company.
The products are tailored for brokers, advisors, lawyers; any professional service provider which faces a business with a need, aiming to enhance relationships with clients by taking the pain out of seeking multiple entry points for funding.
Interested in exploring your non-bank funding solutions? Visit our website today or give us a call.
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