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Demystifying Non-bank Lending

By August 22, 2020 September 24th, 2020 No Comments

We sometimes observe the misconception that borrowers use non-bank lenders like Gemi only for high risk projects or as a lender of last resort after being turned down by a bank.

In reality, we note the structural dislocation in the banks’ lending appetite and practices for commercial real estate, particularly real estate that are non-income producing, as a result of regulatory change (APRA and Basel III) and the Royal Commission.

Additionally, many borrowers that approach non-bank lenders are eligible for bank funding but choose a non-bank lender, particularly for short-term funding, for the benefits of speed, easy to deal with, and certainty of funding.

SPEED: Non-bank lenders like Gemi can complete a transaction from start to finish generally within two weeks, and often quicker in certain situations. 

EASY TO DEAL WITH: Gemi prides itself on being easy to deal with, focusing on the commercial aspects of a deal and not led by internal compliance.  This enables Gemi to be more responsive to the borrower’s needs.

CERTAINTY OF FUNDING: Borrowers dealing with non-bank lenders benefit from dealing with the principals.  Some lenders such as Gemi furthermore has committed funding, which means that once a funding commitment is made, it is delivered.

To learn more about Gemi and our approach click here