We are seeing a big change in lending behaviour by all lenders.

In the last 12 months we have seen a dramatic change in credit policy and a reduction in approvals both in the consumer space (home loans, car loans, personal credit of all types) and also in commercial loans, which includes all asset finance, (business loans, varied business credit, over drafts, credit cards, debtor finance etc).

Since the royal commission we have seen a number of lenders introduce and adopt some of the tight consumer lending policy to commercial lending which has resulted in a number of declined applications as clients are not able to satisfy lending criteria , this means more than ever before you need an experienced knowledgeable and professional broker with a large spread of lenders to help you seek out the appropriate lending alternatives . This tightening up in credit policy means that a lot more work is done leading up to the submitting of the lending proposal , alternatively if the clients profile does not satisfy the main stream lenders the client has the option to go to a non-main stream lender which has slightly more relaxed policy and a higher interest rate .

There are 2.3million small to medium businesses (SME) in Australia and all of them are finding it increasingly difficult to sources funds, particularly new business ventures that have been trading for less than 24 months and have no asset backing, there are options but they are limited.

Credit Scoring has become far more prominent and a client’s credit score for both the business and the individual directors and the shareholders /beneficiaries are now being considered with each lender having their own minimum credit score that they will accept , for example a lender may have a minimum score for the business VEDA of 500 and a personal credit score for a director of 600 and a minimum of 400 for a share holder .

Defaults & Judgements we are seeing an ever-increasing number of defaults and judgements on client’s credit files which is slowing up the lending process and frequently these defaults and judgments need to be resolved before lending can take place .

New Credit reporting the new credit reporting requirements are beginning to take effect and are being rolled out by all lenders where lenders are now required by legislation and the code of responsible lending to seek references from other lenders on a client’s credit worthiness , as well, if have you have late payments of utility bills ,minimum monthly credit card payments or monthly loan payments the credit file will list these ,also if you have a ATO debt and payment arrangements they will make their way onto the credit files for individuals and companies , some of you may have recently received a credit file report and will have already seen the additional reports and scoring as a result .

Whilst we can still find lending alternatives and negotiate with lenders in the majority of cases when a client has a blemish on the their credit file please bear in mind that usually if we are looking to secure a low doc loan and there are irregularities or credit file blemishes the lender will either with draw , request a full doc deal with full two years financials and ATO portals or increase the base rate due to the added perceived risk or they may request further information relating to the character of the borrower .

Based in the Sutherland Shire, Agility Financial Services are fully equipped to handling any credit request. With over 36+ years experience in loan servicing, there isn't much we don't know about credit loans. We pride ourselves on our honest, transparent approach to all finance enquiries and believe that differentiates us from major lenders. Feel free to Contact Us today and have an open and free discussion about getting the finance you need.