A specialist financier has seen a 30 per cent rise in revenue due to increased demand for short-term finance for SMEs.
NWC Finance has said that it experienced "record demand" in the last year, particularly from brokers, lawyers and accountants seeking cash flow solutions for their clients, in the face of tighter credit criteria from the major banks.
Joe Morello of NWC Finance said that new APRA controls on the banks' capital adequacy and concerns about potentially 'high-risk' loans were causing the banks to tighten their lending policies.
He commented: “There has been a surge in calls this year from brokers and accountants whose clients’ finance has fallen over literally hours before settlement of purchases or expiration of finance facilities, slow or lack of payment by debtors or an urgent need for new capital.
"We are finding this is happening more often as the banks are pulling their funding for deals, often too late for clients or arranging alternative finance from top and second tier banks.
“The result of our funding almost always saves a company and the assets of the owners, who more often than ever fall into liquidation and lose their homes and other assets,” Mr Morello added.