New research has revealed which non-bank lenders brokers think are at the top of their game for short-term, commercial, specialist, debtor, and equipment and leasing lending.
Momentum Intelligence’s Third Party Lending - Non-Bank Lenders 2017 Report , run in partnership with The Adviser, has revealed that for the fourth year in a row, specialist short-term secured asset lender Assetline Capital beat out competition to win the category of Non-Bank Lender for Short-Term Lending.
Assetline Capital's co-founder and executive director Nick Raphaely said he thought more brokers would turning to Assetline Capital this year as banks tighten up on their lending criteria.
He said: "The banks have got tighter and slower and that has resulted in us doing more business. When I talk to my peers in the market, they think that 2017 is going to be a really busy year because they don’t see the banks loosening up. So, they think the well-capitalised and well-established private lenders have a very good opportunity."
Mr Raphaely also said that he hoped to quicken turnaround times and offer larger loans (up to $10 million) in the year ahead.
Commercial property finance specialist Thinktank moved up one place this year to take the title of Commercial Lender 2017. Jonathan Street, Thinktank’s co-founder and CEO, commented, “It is wonderful to receive this sort of independent recognition for the sort of business we do and the relationships we have across so many brokers, and we are very appreciative for such a resounding vote of support from the industry."
He added that the market for commercial finance was "significant" and could offer brokers a "great, ongoing source of potential business across their self-employed and SME clients".
He noted that SMSF lending in particular had been a major area of activity with an increasing number of brokers building out a recurring stream of business.
Non-conforming specialist Bluestone Mortgages was recognised by brokers for its product and service offering.
Campbell Smyth, CEO at Bluestone Mortgages, commented, “The recent win is significant. It reflects our complete focus on specialist lending, and efforts to provide brokers with solutions designed to assist and benefit more customers, especially self-employed borrowers."
Mr Smyth attributed the success of the company to a focus on supporting the SME sector and its expansion of its BDM team.
According to Mr Smyth, since returning to the market in 2013, the company has sustained a year-on-year growth rate of over 100 per cent, which he attributes to its focus on "supporting start-ups and self-employed borrowers, being in tune with their evolving demands and consistently providing products that are highly appealing to the sector".
He commented: "In real terms, this means that a previously disadvantaged group has a suite of financial solutions that supports their needs and doesn’t discriminate based on trading history – hence why the product uptake is substantial, and is expected to increase as the SME sector evolves...
"The specialist lending space, especially the self-employed sector, is grossly underserviced and represents a sizeable market segment. We encourage brokers to embrace specialist lending as part of their dealings and not leave revenue on the table,” Mr Smyth concluded.
Equipment, Leasing and Business Finance
NLG Leasing, which provides outsourced asset finance aggregation and referral services for financial services professionals, came out top of the crop in the Equipment, Leasing and Business Finance category of non-bank lenders.
“The NLG Leasing team were completely thrilled to win the Equipment, Leasing and Business Finance category in the recent awards for the second year in a row,” said Frank Crombie, director of aggregator services, NLG Leasing.
“Asset and equipment finance continues to be a growth sector and the obvious area for diversification. It provides an alternate revenue stream, increases a broker’s value proposition and aids client retention by creating deeper and ‘stickier’ relationships.
"For your clients, managing cash flow is an ongoing challenge for most businesses. Equipment acquisition through a finance structure enables the use of an asset without the risk or pressure of a sizeable upfront payment. It also frees funds to be reallocated to other areas. This smart financial alternative can positively affect efficiencies, productivity, sales, and ultimately growth,” he said.
Cash Flow and Debtor Finance
Three-year-old company Moula was ranked as the best non-bank lender for cash flow and debtor finance offerings.
Aris Allegos, co-founder and CEO, said: “Getting funding into a somewhat convoluted trust structure within 24 hours is something that typically floors brokers and customers at the same time.
“We have massive customer advocacy because of the turnaround times. We’ve worked really hard to ensure that our product has been built with respect, and to win an award like this is a reflection of the effort that we put into that.”
Mortgage Ezy was also recognised by brokers as being the best mortgage manager.
Between 28 November 2016 and 23 December 2016, Momentum Intelligence asked brokers to rate the non-bank lenders they had written business with over the last 12 months across eight key metrics.
Survey responses were carefully assessed, measured and validated through statistical data analysis (SPSS) by an external market research professional, resulting in a total usable sample of 591 brokers.
[Related: Commercial Business Writers 2016]
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