Specialist financier NWC Finance has reported “record demand” in the first three months of the 2017–18 financial year, following an “unprecedented number” of land buyers and developers coming through its doors.
According to the short-term lender, land buyers and developers are increasingly finding it hard to get loans through the major banks as they have tightened up their lending criteria and policies off the back of macro-prudential controls.
As such, the company has seen a 30 per cent increase in business this financial year.
Joe Morello, a director of NWC Finance, commented: “Many of the clients who come to us are having very oppressive conditions placed on their loans at the last minute, which simply cannot be met.”
He added that the lender is seeing large loans being written for these people, often more than tens of millions of dollars.
NWC Finance noted that it was also seeing more approaches from brokers, lawyers and accountants on behalf of their clients who fall foul of the tough lending conditions, despite interest rates remaining at historic lows.
They reportedly have more than 1,000 brokers writing business through them.
Mr Morello concluded: “We expect NWC Finance will post another record result for the current financial year as clients are facing even further pressure from the traditional lenders.”
[Related: SMEs increasingly concerned about cash flow]