How do non-bank lenders evaluate a deal?

By August 23, 2020 September 24th, 2020 No Comments

Non-bank lenders typically focus on 3 areas in every transaction:

  1. Quality of the property project and the loan to property value ratio (LVR)
  2. The sponsor behind the project, their experience in delivering similar projects and their financial position
  3. Exit strategy and achievability of the exit over the term of the loan

The evaluation doesn’t end once a loan is settled.  Constant monitoring is necessary to ensure the credit is proactively managed and any issue that may impact on the exit is identified early and proactively managed with the borrower and other stakeholders.

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