Unlike traditional banks, non-banks and alternative lenders generally face the misconception that they only cater to people with bad credit histories – a representation that paints a technicolour industry in monotones.
At La Trobe Financial, business development managers are keen to present a more accurate image of the industry, even those who initially believed the misconception themselves prior to joining the non-bank.
Before working at La Trobe Financial as a senior manager for client relationships in the Melbourne area, Penny Wei used to serve at a boutique brokerage that specifically marketed its service towards people with a poor credit history.
There, Wei worked exclusively on clients with an unstable employment history, or a Centrelink income only, who couldn’t meet the typical underwriting guidelines of conventional lenders. Wei said that before becoming a BDM at La Trobe Financial, she thought non-banks were for “flawed” applicants.
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“It was an eye-opener, and I quickly learned that not only can we assist clients with credit impairments – more importantly we are providing means for clients who actually do not have a bad credit history but simply need an alternative approach for their financing needs,” she said.
This group includes self-employed clients who need funding but don’t have adequate financial records available, developers who want to use La Trobe Financial’s no presale requirement for loan amounts under $5 million, or those who seek to access a residual stock facility to free up cash flow needs for their next project.
Geoff Murphy, a senior manager client relationships who is also based in Melbourne, agreed on the misconception as well as the disservice it does to both lender and client.
“In fact, lenders like La Trobe Financial are providing inclusive solutions to Australians every day that need a lender to look at them through a different lens,” Murphy said. “In reality, very few clients would be classified as credit-impaired – they just have different needs that require a solution-based lender such as La Trobe Financial to get them there.”
He joined La Trobe Financial a few months ago from ING and said he now enjoys helping a wider range of customers.
“As a BDM it’s really satisfying to be able to say yes to more scenarios and offer genuine solutions that many legacy lenders simply turn away,” Murphy said.
La Trobe Financial has been helping less conventional borrowers for more than half a century now, and according to Cory Bannister, chief investment officer, the company’s motto of “others before self” has driven the non-bank “to pioneer lending solutions for underserved borrowers” and “ensure they service those borrowers and market segments that have been left with little credit availability or support.”
“Due to the custom and personalised nature of our credit assessments and our willingness to take the time to fully understand a borrower’s unique circumstance, our team, which is one of the largest in the sector, can provide appropriately tailored solutions for those ‘round peg’ borrowers who still need access to capital,” Bannister said.
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