Non-bank business loans: how lenders without deposits fill the gaps banks leave

The word “non-bank” makes some owners nervous, as though it means a back-room operator. In practice, plenty of Australia’s well-known lenders are non-banks: firms that have written business and property loans for decades, sometimes on a bigger scale than smaller banks. The only defining difference is where the money comes from. Understand that, and you’ll understand why non-banks say yes when banks say no, and why their offers cost what they do.

Where does a non-bank’s money come from?

A bank lends out deposits. A non-bank can’t take deposits, so it raises money another way:

• Warehouse facilities. A big bank or institution lends the non-bank a pool of money, which it then lends to customers.
• Securitisation. Once enough loans build up, the non-bank packages them and sells bonds backed by the repayments to investors.
• Investor funds. Superannuation funds, private credit funds and wealthy individuals invest directly in the lender’s loan book.

That funding usually costs more than deposits, which is one reason non-bank loans are priced higher. It also has a less obvious consequence. Non-banks depend on wholesale investors staying keen, so their appetite can tighten when markets get nervous. The RBA’s March 2026 Financial Stability Review noted that favourable capital market conditions had helped non-bank growth until early 2026, then tightened as volatility picked up in March. If a non-bank’s criteria or pricing shifts between your first quote and your formal application, this is often why.

What are the main types of non-bank business lender?

“Non-bank” covers a broad church. Each kind tends to specialise:

Type	What they lend	Who it suits	Examples with pages here
Specialist mortgage lenders	Commercial property loans, residential-secured business loans, low doc lending	Self-employed owners, complex trusts, property investors	La Trobe Financial, Pepper Money, Liberty
Fintech lenders	Unsecured loans and lines of credit, often decided from bank statement data	Trading businesses wanting speed	Prospa, Moula
Invoice financiers	Advances against unpaid customer invoices, trade finance	B2B firms with slow-paying debtors	ScotPac, Earlypay
Asset financiers	Equipment, vehicle and machinery finance	Trades, transport, agriculture, manufacturing	Angle Finance, Dynamoney

Private lenders, who lend investors’ money mainly against property for short terms, are sometimes lumped in with non-banks. We treat them separately because they work differently: see private business loans and our non-bank vs private lender comparison.

Why do non-banks approve files that banks decline?

Banks are excellent lenders for the businesses that fit them, and they are often the cheapest money in the market. If your bank has offered terms you can live with, take that seriously. But bank credit policy is built for scale and consistency. A file that sits slightly outside the box (one year of trading instead of two, tax returns 18 months behind, a paid default, income spread across three trusts) can be declined even when the business itself is sound.

Non-banks write their own credit policy and price for the risk they take on. That shows up in practical ways:

• Alternative income evidence. Accountant’s letters, BAS or 6 to 12 months of bank statements in place of full tax returns. See low doc business loans.
• Shorter trading history. Some lenders accept an ABN that has traded for well under two years.
• Credit with context. A default with a good explanation and a clean record since can still be approved.
• Structure tolerance. Companies, trusts and multiple related entities assessed together.

The RBA has also observed over several years that banks have stepped back from some higher-risk business segments, with non-banks picking up share, particularly in property-related lending. In plain terms, the non-bank tier exists because there’s demand banks have chosen not to meet.

If your bank has already said no, send us a quick enquiry and we’ll tell you honestly whether a non-bank is likely to see it differently.

What non-bank lenders check

Expect the same broad questions as a bank, weighted differently.

Area	What they look at	Where they’re often more flexible
Serviceability	Bank statements, BAS, financials, existing repayments	Accept bank statement or BAS evidence instead of full returns
Security	Property, equipment, receivables or a guarantee	Second-ranking security, higher reliance on equity
Credit	Business and director credit files, ATO standing	Explained defaults, ATO debt on a payment plan
Trading history	Time since ABN registration, consistency of revenue	Six to 12 months may be enough for some products
Purpose	What the money does for the business	Unusual but legitimate purposes, such as clearing a tax debt

What does a non-bank loan cost?

There’s no single answer. A strong borrower with property security may find a non-bank offer close to what a bank would charge. A newer business wanting unsecured funds within 48 hours will pay considerably more. Fees vary too: establishment, valuation, legal and sometimes ongoing line fees.

Because most business-purpose lending falls outside the consumer credit rules, fewer automatic protections apply, so the paperwork deserves a slow read. Ask each lender for the total repayable in dollars over the expected term, and check whether early repayment triggers a fee, since many owners plan to refinance to a bank later. Our loan cost comparison calculator puts two offers side by side.

Using a non-bank as a stepping stone

One of the most practical uses of a non-bank loan is temporary. Consider a Brisbane electrical contractor whose bank declined a $380k loan because two years of tax returns hadn’t been lodged. A non-bank lends against the owner’s home on bank statement evidence, the owner uses the breathing space to bring the returns up to date and pay down the ATO balance, and 18 months later refinances to a bank with a clean, lodged file. The non-bank cost more for that period, but it kept the business moving while the paperwork caught up.

That only works if you plan the exit from day one: know which documents a bank will want, set a date to approach it, and avoid loans with heavy early exit costs.

Questions to ask any non-bank lender

1. What is the total I’ll repay, in dollars, including every fee?
2. Is there a fee or break cost if I refinance early?
3. What security will you take, and will you register anything on the PPSR?
4. Are you a member of the Australian Financial Complaints Authority?
5. Who will manage the loan after settlement if I need to talk to someone?

Is a non-bank the right next step for you?

If your bank’s answer was no, slow or smaller than you needed, a non-bank may well be where the business finds its yes. The hard part is knowing which of dozens of lenders actually suits your mix of security, documents and credit history.

That’s the bit we do. Our form takes about a minute, and filling it in doesn’t trigger any credit enquiry. Your details stay with one team instead of being passed around the market, so you won’t be fielding calls from strangers. A person reviews your circumstances and phones you to discuss what’s realistic. Please answer each question accurately; the closer the form is to reality, the better our first suggestion will be.

Find out which non-bank fits your file →