POINT BLANK -- A solid base

The liquidity crisis has left an indelible mark on the psyche of Australia's lenders. But despite the volatility in the marketplace, Provident Capital's Steve Sampson says the company has managed to weather the storm while remaining true to its non-conforming roots.

WHAT FUNDING CHALLENGES HAS PROVIDENT FACED OVER THE PAST 12 MONTHS?

While uncertainty in the finance markets prevailed over the last 12 months, we have been in the fortunate position of being able to fund our core products off our balance sheet. Our retail investors have shown genuine support to our investment products because we have continued to pay all our commitments on time, every time while others have not.

In fact, we were fortunate enough to be able to release two new mortgage income funds and put in place a wholesale funding line to expand our lending product range to include lite doc and prime mortgages.

It goes without saying that we are extremely proud of how we have continued to expand and grow in a time that was so challenging for so many others.

IN THE LATEST THE ADVISER SENTIMENT SURVEY, WE SAW A RECORD LEVEL OF BROKER SUPPORT FOR THE NON-BANKS. DO YOU THINK THIS WILL TRANSLATE INTO BUSINESS?

Banks have a habit of becoming complacent in their service levels when competition shrinks.

Obviously they can have a funding and pricing advantage but I believe that a lender with a good consistent service proposition, fair price and commission and no channel conflict can forge stronger relationships with the broker network and its clients.

That is why Provident Capital has expanded into the Prime and Lite doc markets and complements its non-conforming offering.

IN A CHANGING MARKETPLACE, A NUMBER OF NON-CONFORMING SPECIALISTS HAVE STEPPED AWAY FROM THEIR TRADITIONAL LENDING SPACE. WHY? ARE WE LIKELY TO SEE MORE LENDERS DO THIS IN THE FUTURE?

The obvious reason for the reduction of non-conforming lenders is the lack of liquidity.

There's no denying there was a lack of appetite in the institutional markets to provide this type of funding, however as previously mentioned, we have been fortunate enough not to have to be reliant on institutional funding.

There is also the fact that non-conforming lending requires meticulous credit assessment to ensure safety of the loan. Some operators were not diligent enough and suffered enormous losses forcing them out of business, whereas our credit policies have been consistently robust no matter what the state of the market, which is reflected in the fact that we have successfully managed through the GFC.

I'm not sure that there are many ‘true' non-conforming lenders left in the marketplace right now, and certainly none that can refinance and provide options for a borrower from non-conforming through to prime.

WHAT COMPANY GOALS DOES PROVIDENT CAPITAL HOPE TO MEET OVER THE NEXT 12 MONTHS TO TWO YEARS?

We are very optimistic about the coming 12 months. Our major aim is to provide our introducers with a cross-section of product from non-conforming to low-doc and now prime, and become one of the best recognised and respected non-bank lenders in the industry.

We are working hard to expand our distribution base and provide brokers with unparalleled, quality service - the best in the market.

The release of our Prime and Lite Doc range of loans is an exciting step for a company like ours that has been established for almost 20 years.

We will use that experience to ensure our customers are the happiest in the market.