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Why People Are Increasingly Turning to Non-Bank Lenders

Non-bank lenders are becoming more and more popular and common in small business lending. Increasingly, Kiwis are recognising them for being innovative and flexible, and are regulated just like banks are. Learn more below about who and why people turn to non-bank lenders such as Mortgage Masters, and read more about Mortgage Masters on our About Us page.

What Is a Non-Bank Lender?

A non-bank lender is a lender, offering credit and loans, that is any financial institution other than a bank. Whilst they don’t provide the other types of services that a bank does, non-bank lenders are regulated in their lending services just as banks are. With the burgeoning number of non-bank lenders on the market, interest rates are being driven lower and lower. With competitive rates and the kind of flexible loan terms that a bank could only dream of, non-bank lenders can make some of the best small business lenders.

Why Turn to a Non-Bank Lender?

Non-bank lenders excel in their customer-oriented service.

Fast

Non-bank lenders are focused on fast and responsive service, in a new model that leaves traditional banking in the dust. When you need a personalised service on a timeframe that can keep up, non-bank lenders offer clear advantages over banks.

Dynamic

Non-bank lenders go out of their way to connect with and understand their clients. If you are facing unique challenges, whether it’s securing the documentation you need or a risky business venture, non-bank lenders are the ones who will listen.

Some Specific Examples

People turn to non-bank lenders for all sorts of reasons.

Bad Credit History

Banks’ lending criteria can be surprisingly strict, and too restrictive for people who have a bad credit history. Your credit record can span items as wide-ranging as credit cards, mortgages, and even if you paid your bills on time. If you have credit accounts, enquiries or defaults you aren’t aware of, banks may see this as a warning sign to turn tail. However, non-bank lenders are much more accommodating for people who don’t want to be chased for any credit mistakes from the distant past.

Small House Deposit

Some people who want to get on the property are consistently told by the banks that their savings are too small for a house deposit. Non-bank lenders can be resourceful enough to secure a mortgage, even for a small deposit.

Self-Employed

If you are self-employed, you may struggle to prove your income in a way that will meet a bank’s lending criteria. Don’t let the fact that you’re your own boss hold you back. Instead, turn to a specialist non-bank lender who will be more flexible in terms of what kinds of proof of income they will accept.

Property Investors

Bank and non-bank lenders use different ways to calculate whether you can afford the remortgage deals to add another home to your property investment portfolio. If you don’t want to be limited and take full advantage of your opportunities, non-bank lenders make for some of the best mortgage lenders.

Talk to a Loan Broker

To book a consultation or ask any questions you may have about your finances, give us a call on 0800 630 7171.

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