What are the advantages of borrowing from a non-bank lender?

Updated On November 7th, 2023By Dynamoney

Regardless of how successful your business is and for how long you have been operating, if you are a small or medium sized business that has considered using debt as part of your financial operating strategy, there is every chance that you have struggled when it comes to working with a bank or traditional lender. If you are a new business or have had any kind of cash flow or credit challenges, there is even less likelihood that you have been able to get a fair hearing from a traditional lender, if you could even get a meeting.

Businesses of every size regularly consider utilising debt as a sensible operational strategy for supporting business operations and growth. Whether it is a small loan or facility to support purchase of vehicles to address growth needs, or a line of credit to cover anticipated short term cash flow challenges, the expectations that major lenders have of smaller businesses are often impossible to overcome.

Typical roadblocks experienced when dealing with bank lenders include extended times to hear whether approval has been granted or not, exorbitant interest rate premiums which reflect the bank’s view of the risk associated with smaller businesses, a “one-size-fits-all approach to dealing with small and medium businesses which doesn’t reflect the nuances of any particular business or sector, and onerous security requirements which might include mortgaging business facilities or even providing director’s guarantees which put your personal assets at risk in the event of a default.

The novel coronavirus has had some very bad effects on the non-bank lending business. Never before has the lender food chain become so apparent. https://t.co/18RNWrNQh0 pic.twitter.com/19KZ9DoNLi

— AAPL (@AAPLOnline) December 7, 2020

For newer businesses, the expectations for the company to demonstrate profitability and sound financial management are likely to be difficult, even impossible, to meet. The challenge for small and medium sized businesses to operate and grow is significantly diminished by the approach that traditional and banking lenders offer.

However, there now is a sophisticated and nuanced lending sector emerging, catering for smaller companies. The sector recognises these challenges and takes a different approach to supporting small business clients. Dynamoney is a leading non-bank lender that specialises in working with smaller and medium sized companies, even emerging and start-up companies, to provide lending solutions which can help you to propel your strategy and vision into the market. Underpinning growth and providing you with the financial comfort you need to make the decisions that will keep you in business for the long term.

Whether it is a small loan or facility to support purchase of vehicles to address growth needs, or a line of credit to cover anticipated short term cash flow challenges, the expectations that major lenders have of smaller businesses are often impossible to overcome.

Our team of specialist lenders has broad experience across a range of sectors and, importantly, we get small business, and we get your challenges. With a range of finance solutions, from vehicle finance through to trade and insurance premium finance, solutions for energy efficiency initiatives, import and export finance and even small business loans, Dynamoney works with both new and established businesses and even businesses that may have had previous credit challenges but can demonstrate their ongoing viability.

Our finance solutions are typically available following a short turnaround approval process, meaning you don’t have to wait and stress for extended periods about whether or not you’ll get approval and even if you don’t have a long history in business, we can work with you to identify finance options to support your business growth aspirations.

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