Today’s market is defined by uncertainty, but it is also defined by opportunity for those who are prepared. For brokers, success increasingly comes down to having the right lending partners to help navigate volatility, move quickly and deliver certainty. We sat down with Damien Simonfi, CEO and founder of Capital Bridging Finance, to discuss the state of the market, the role of bridging finance, and where brokers can unlock opportunities in the current environment.
Q. How would you describe the current lending environment at the moment?
It has been challenging, but it has also been manageable for brokers and borrowers who know where to go. We’ve had three interest rate hikes this year. Inflation’s ticking up. We’re seeing tighter lending standards, and it’s just a more selective approach from the big banks.
There are some really mixed signals out there, and that hasn’t helped sentiment. I think people like certainty. But credit is still flowing, especially outside of the majors. As a bridging financier, we’re definitely seeing much higher demand for those short-term solutions and giving the borrowers the breathing space to refinance or to move on to that next project.
Q. What are you seeing from borrowers at the moment?
I think there are a lot of tough conversations out there. But let’s not forget this is nothing new. We’ve been through many cycles before, and as brokers, financiers, borrowers, we adapt.
In terms of behaviour, we’re seeing borrowers become more realistic. They’re planning better, using bridging finance as an alternative. Those who adapt are getting the deals done.
Q. What does this shift mean for brokers and their clients?
In practice, it means that brokers have to work harder, invest more time, and become more strategic. One size doesn’t fit all, and clients with complex situations – such as a self-employed and chunky cash flows and property developer-type borrowers – are getting declines.
You’re seeing a lot of people who have never heard “no”, hear “no” for the first time.
There are a lot of honest conversations happening between brokers and their borrowers – longer time for approvals, stricter criteria, and that can sometimes lead to higher rates.
Q. How have you seen the role of short-term and bridging finance evolve?
I’d like to say nothing really changes in lending, but it has. Bridging finance used to be a very niche market, but now it’s a core strategic tool. You have 22,000-plus brokers now, and a good portion of them are using bridging finance and short-term lending to fix those scenarios that banks are just steering clear of. In today’s market, timing is really important.
Q. What are brokers missing out on if they don’t use non-bank lenders?
First and foremost, it’s income. But it’s reputation as well.
It’s a little bit like going to a doctor – you want to hear all of your options. If you go to a GP or if you go to a really skilled broker, they will give you all the options. Non-bank lenders give you access to the complex commercial deals that don’t fit inside those rigid mainstream banking boxes. Clients are more than happy to pay a higher price if it keeps the deal alive.
If you’re travelling down the freeway, and there’s a roadblock, for example, you might want to take a service road. All those roads lead to Rome, and I suppose that’s what we’re here for.
Q. What should brokers be looking for in a short-term lending partner?
There are probably three or four key qualities that I think are really important. Speed with decision and settlement. Flexibility on how to structure the loan from the start and also how it matures and exits safely. Transparency and communication – I mean, that’s everything. And you get that with tenure. People trust you after having put scenarios through you in the past and a proven track record. These are all relationships, first and foremost. I’m still receiving telephone calls from people that I met in 2005 or 2006. So, consistency is really paramount.
Q. How do you see short-term lending evolving in the immediate future?
The environment is tougher. But brokers have never been more important. The broker community is very sophisticated, highly educated, and skilled – more so than it has ever been.
Clients who do work with experienced brokers and lenders like Capital Bridging Finance are the folks that are just going to keep kicking those goals. Every loan we settle is a sliding door moment for that borrower. It’s life-changing. It really is critical. And when you see that success on a personal level where every loan you write comes in safely and exits safely – it’s magic.
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