Quick answer
Banks usually offer business lending with strict criteria, often wanting property security, several years of financial statements and clean credit. Non-bank lenders are licensed or regulated businesses that lend their own or investors' funds and often assess on bank statements, property or recent trading, which can mean faster decisions and more flexibility, sometimes at a higher cost. The right choice depends on your profile and timing.
Key points
- Banks: strict criteria, often property and full financials
- Non-banks: more flexible assessment and often faster
- Non-bank lending has grown, especially for smaller loans
- Compare total cost and flexibility, not just the lender type
- Banks typically want
- Financials, security, clean credit
- Non-banks often accept
- Bank statements or property alone
- Speed
- Non-banks often faster
- Cost
- Depends on the borrower and the loan
For years, the default place to ask for a business loan was your bank. That is still the right first stop for some businesses. But a growing share of small business lending now comes from non-bank lenders, and for many owners they are the more practical option.
How banks approach business lending
Banks generally lend against a well-documented history: two or more years of financial statements and tax returns, a clean credit file and, very often, property security. The upside is that well-qualified borrowers can get sharp pricing. The downside is that many perfectly viable small businesses do not tick every box, and decisions can take weeks.
How non-bank lenders approach it
Non-bank lenders use their own funds or funds from investors. Many focus on particular kinds of lending: unsecured cash flow loans assessed on bank statements, property-secured loans without a valuation, invoice finance or equipment finance. Because their criteria are built around those products, they can often decide faster and say yes to businesses a bank would decline.
The Reserve Bank has noted that the non-bank share of small business lending has grown strongly in recent years, particularly for smaller loans, and that around one in five small businesses report difficulty getting finance. That gap is where many non-bank lenders operate.
Ready to find out? The enquiry form takes about a minute. No credit check, no spray of your details to a dozen lenders, just a call from a real person.
Side by side
| Banks | Non-bank lenders | |
|---|---|---|
| Typical evidence | Financial statements, tax returns, security | Bank statements, BAS, property |
| Decision speed | Days to weeks | Often hours to days |
| Credit flexibility | Lower | Higher, case by case |
| Property valuation | Usually required | Often not, for the loans we arrange |
| Pricing | Sharp for strong profiles | Varies with risk |
| Refinancing later | n/a | Often a stepping stone back to a bank |
When a non-bank lender makes sense
- Your bank has declined, or wants security you would rather not give.
- You need a decision quickly.
- Your financial statements are late or do not reflect current trading.
- There are credit marks or a tax debt to work around.
If that sounds familiar, our page on being declined by the bank explains the usual next steps.
Checking any lender
Whoever you deal with, read the contract, understand the total cost, ask about fees for early repayment and confirm how complaints are handled. Our guide to what to check with non-bank lenders lists the questions.
Key takeaways
- Banks: strict criteria, often property and full financials
- Non-banks: more flexible assessment and often faster
- Non-bank lending has grown, especially for smaller loans
- Compare total cost and flexibility, not just the lender type
How Capital At Call handles it
After you enquire, a real person picks up your details and calls to talk through the purpose, the timing and how the money will be repaid. Unsecured funding is assessed mainly on bank statements and turnover. Property-secured funding is assessed on the property, with no valuation required, and interest can be prepaid or added to the loan. You see the total cost before you commit, and the credit check only happens once you decide to proceed. If the timing is tight, tell us the deadline on the first call so the work can be planned around it.
Getting your details together
A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:
- Your ABN and the legal name of the business.
- Online banking access, so recent statements can be shared through a secure read-only link.
- A rough figure for monthly turnover and the amount you need.
- A list of current loans and repayments, including any ATO payment plan.
- If property is involved, the address and roughly what is owed on it.
Getting the enquiry right
Every question on the form is there for a reason: it changes which funding fits. Describe the business as it stands today rather than the version you expect in six months. Mention any default, tax debt or recent decline in the notes. We look at those situations all the time, and knowing early lets us head straight for options that can actually work.
Ready to check your options?
If this sounds like your business, start the enquiry. It takes about 60 seconds and runs no credit check. Your details are not sprayed across the market; the team that reads your enquiry is the team that works on it. Please give real numbers rather than hopeful ones. A clear picture of turnover, credit history and property lets us point you to the right funding straight away.
Frequently asked questions
Are non-bank business lenders safe?
Many are well established and regulated in various ways, but quality varies. Check who you are dealing with, read the contract carefully and make sure you understand the total cost and any fees.
Why do banks decline small business loans?
Common reasons are a short trading history, no property security, weak or late financial statements, tax debts and credit file issues. A decline from a bank does not mean every lender will say no.
Are non-bank loans more expensive?
Sometimes, because they take on risks banks avoid. Property-secured non-bank loans can be competitive. Compare real offers by total cost.
Can I use a non-bank loan and then refinance to a bank?
Yes. Many owners use non-bank funding to solve an immediate need, then refinance once their financials, credit or trading history meet bank criteria.
Does the Banking Code of Practice cover non-banks?
The Banking Code of Practice applies to banks that subscribe to it. Non-bank lenders may follow other codes or none, so read their terms closely.
Ask right here, it takes a minute
The same 60-second enquiry, on this page. No credit check to enquire, and the person who reads it is the person who calls you.