When you need a short-term business loan, don’t let a bunch of silly, outdated myths stop you from securing the loan that could save the day.
When it comes to short-term business loans, chances are your mind immediately thinks of approaching your own bank or another more traditional lender. But what if something out of the ordinary happens? A once-in-a-lifetime opportunity? Or your supply chain stalls temporarily and you need a fast cash flow injection to keep the wolves from the door? A non-lender, like Strive Financial, could be the answer.
What’s a non-bank lender?
As the name suggests, a non-bank lender is a lender that isn’t a bank, building society or credit union. As they don’t have an Authorised Deposit-taking Institution (ADI) licence, and therefore don’t have access to customer savings to lend out, they make their money from the interest they charge on loans.As disruptors to the traditional lenders, many myths have grown up around the industry. So, we’re here to bust five common myths about non-bank lenders.
Myth #1: Only desperate people use them
People use short-term business loans, or fast finance, for many reasons. The most common is a temporary cash-flow problem, which has impacted many Australian businesses over the last three years as global supply chains ground to a halt due to COVID-19 restrictions. Imagine needing just a bit of cash or a small line of credit, for just a few weeks or months, to keep your business afloat but your usual lender just can’t arrange it fast enough?
Myth #2: Non-bank lenders are crazy expensive
There are lots of factors affecting small business loan interest rates across the industry and Strive Financial may not be as expensive as you think. Afterall, we’re talking short-term lending here so looking at the annual interest rate is only telling half the story. Why not crunch some numbers in our handy online loan selector and see what loan will best suit your current needs. Or check out our quick 90-second video explaining short-term business loans.
Myth #3: It’s all a bit …..dodgy
Many people incorrectly lump non-bank lenders into the same category as pay-day lenders and ‘loan shark’ type businesses. This is unfair and completely untrue. In fact, all Australian non-bank lenders hold an Australian Financial Services Licence. This is rigorous to maintain and means we must be honest and transparent about our rates and associated fees.
Myth #4: Non-bank lenders are only for people with a bad credit history
While Strive Financial does lend to those with a ‘bad credit’ rating, they’re by no means our only customers. As always, our strict security criteria applies, protecting both investors and borrowers alike. Most of our customers are people just like you – small business owners looking for financial solutions so they can save the day or seize the moment.
Myth #5: Non-bank lending is risky
As we strive to safeguard investors and borrowers, we generally require a first or second mortgage on a property the borrower owns. However, depending on the type of loan, we may also take unencumbered vehicles like boats, cars and trucks as security as well. Whether you need a short-term business loan of $20,000 or $2,000,000, you’re in the right place. And did we mention we can generally have the funds in your bank account within 24 hours?
Contact us today to chat about how we can help you solve your financial problems. Fast.
In the world of commercial finance, traditional lenders have had a monopoly for quite a long time. However, things are changing. Borrowers facing difficulty getting loans from these lenders are more open than ever to exploring alternative options.