top of page

Why Non-Bank Lending Is the Perfect Solution for Businesses Investing in Commercial and Residential Properties

In the ever-changing landscape of property investment, businesses are realising that banks aren't always the best option for financing commercial and residential properties. With tighter lending criteria, slow approvals, and rigid loan structures, traditional banks can stifle opportunities for property investors.


Enter non-bank lending.


Non-bank lenders are stepping up to fill the gap by offering flexible, fast, and tailored financing solutions that empower businesses to grow their portfolios without the red tape of traditional lenders. This blog will explore the key benefits of non-bank lending for businesses looking to finance commercial and residential properties in Australia.


Commercial Brokers discussing Private Lending

Fast Approvals and Streamlined Processes

One of the most significant pain points with bank loans is the time it takes to get approved. Traditional banks have lengthy processes that can take weeks—or even months—to make a decision. This is where non-bank lenders shine.

Non-bank lenders streamline their approval process, often providing funding in as little as 48 hours. For businesses eyeing a commercial or residential property, speed can be the difference between securing the deal or missing out on a competitor.

Example: A property developer looking to buy a commercial site may need to act quickly before another buyer snaps up the property. A non-bank lender can provide fast financing, allowing the developer to seize the opportunity without delays.


Flexible Loan Structures Tailored to Business Needs

Unlike banks, which tend to take a "one-size-fits-all" approach to lending, non-bank lenders offer flexible loan structures that can be customised to suit the borrower's unique needs.

Whether your business is purchasing a residential investment property or a commercial office space, non-bank lenders are more likely to accommodate unconventional loan terms, such as interest-only periods, balloon payments, and bridging finance options.


A business purchasing a warehouse may only need short-term financing until a pending sale is completed. A non-bank lender can offer a bridging loan to cover this gap, ensuring the business doesn't miss out on the opportunity.


Real-World Success Story: How Innovate Funding Helped a Crows Nest Business Consolidate Debt and Reinvest in Stock

At Innovate Funding, we recently assisted a small business owner in Crows Nest, NSW, who felt the squeeze from multiple debts and needed additional funds to stock up for a busy retail season.


The business owned a commercial property with significant equity, but its bank wasn't willing to refinance its debt due to strict lending criteria. The owner was frustrated with the bank's inflexible approach and feared losing out on a major supplier deal without access to funds.

We stepped in with a non-bank lending solution that allowed them to:

  • Consolidate their existing debts into a single manageable loan.

  • Tap into the equity of their property to access an additional $150,000 for stock purchases.

  • Secure funding within 72 hours, just in time to place their order with the supplier.

This quick and flexible solution allowed the business to focus on growth instead of juggling multiple debt repayments. More importantly, it positioned them to take advantage of a bulk stock deal that significantly increased their profit margins.

Why it matters:

Leveraging property assets can be a game-changer for many businesses when it comes to cash flow. Non-bank lenders like Innovate Funding understand that opportunities don't wait, and fast, flexible solutions are often the key to unlocking growth.


More Accessible for Borrowers with Complex Financial Histories

Traditional banks may see this as a red flag if your business has a complex financial history, such as fluctuating cash flow or previous credit issues. Non-bank lenders, on the other hand, take a more holistic approach to assessing risk.

Rather than focusing solely on credit scores, non-bank lenders assess the overall viability of the investment. This makes non-bank lending a viable option for businesses that don't meet traditional banks' strict requirements.

Example: A business owner with multiple income streams—such as rental income, freelance work, and a small business—may struggle to get bank approval due to inconsistent income. A non-bank lender would consider all income sources and the overall investment opportunity.


Competitive Interest Rates for Short-Term Solutions

Non-bank lenders are often perceived as more expensive than banks, but this isn't always true. Many non-bank lenders offer competitive interest rates, particularly for short-term financing solutions like bridging loans or development loans.

For businesses seeking short-term financing, the slightly higher rates can be offset by the benefits of fast access to funds, flexible terms, and fewer restrictions.

A property investor needing funds to renovate a commercial property may opt for a short-term non-bank loan. The investor can complete the renovation quickly, increase the property's value, and refinance at a lower rate with a traditional lender later.


Why Non-Bank Lending Is a Smart Move for Property Investors

For businesses looking to invest in commercial or residential properties, non-bank lending offers an attractive alternative to traditional banks. With faster approvals, flexible terms, and a personalised approach, non-bank lenders empower businesses to seize opportunities that would otherwise be out of reach.

Whether you're a property developer, a business owner seeking office space, or an investor building a rental portfolio, non-bank lending can provide the solutions you need to grow your property investments without the usual headaches.


Key Takeaways:

  • Fast approvals mean you won't miss out on key opportunities.

  • Flexible loan structures can be tailored to your business needs.

  • Access for borrowers with complex financial histories opens doors to more businesses.

  • Fewer restrictions give you the freedom to invest strategically.


Are you looking for a lending partner who understands your business?

Contact Innovate Funding today to explore how non-bank lending can help your business thrive!

bottom of page