With household debt increasing and the slowdown of WA’s economy, the banks have become stricter when lending money. In the past 6 – 12 months, banks have imposed stricter lending criteria for personal and business customers, making it harder to obtain finance. We all have different financial circumstances, making the one size fits all finance solution obsolete.
People, especially self-employed small business owners, who had no trouble securing finance a few years ago, are now struggling to get a credit card, let alone a business or home loan.
If you have approached your current bank for finance and they say NO, where do you go next? It is time consuming navigating the different lenders, their offerings, and different policies. Unless you’re an expert, where do you start?
Speak to a Finance Broker
Banks are great and having a relationship with them is important, however they can only offer you their products and finance options. Finance Brokers have access to a variety of different lenders and will do all the hard work for you to find a potential lending solution to suit your needs. They regularly work with the banks and know how to present an application, which might give you a better chance of getting your loan across the line.
Try a non-bank lender
Non-bank lenders are becoming increasingly popular in the market. They organise funding from a variety of sources, giving people multiple options. Although they are still regulated and have similar lending criteria to the banks, they also have product and policy offerings available that can be considered looser than the banks. The non-bank lenders can look to help people who have had life experiences that have affected them personally and well as financially, a chance to get back on track.
If you have tried multiple options and have still had no success obtaining finance, make sure you understand why. Speak to the people who are helping you and make sure they explain why the bank isn’t prepared to lend you the money now. Make sure you ask them what you need to do, to meet the lender or non-bank lenders credit policies to possibly assist with any future applications. Once you understand why, you can start to put goals in place to achieve your desired outcome.
Don’t give up
Don’t lose sight of what you want to achieve. Work with professionals to help you position your personal and/or business financial situation in a way that makes obtaining finance easier for you. A no, doesn’t mean a no forever.
If you have experienced a NO and are unsure of where to go to next, speak to an expert. Learn why they’ve said no and let someone do the hard work for you, to see if there is a lender out there who can help!
Credit Representative 490860 is authorised under Australian Credit Licence 389328. www.finarc.com.au
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.