The private lending sector is set for significant changes over the next decade, with small and medium enterprises (SMEs) increasingly seeking certainty and rapid settlements.
“This shift has impacted the entire lending ecosystem, from clients to brokers to lenders,” said Peter Arnold (pictured above), director at GAP Business Loans. As traditional lenders become more rigid, private lenders are stepping in to meet the demand for tailored financial solutions.
Unlike larger institutions that rely on automated processes, private lenders offer a distinct advantage through personalised service and quick decision-making.
“A brief three-minute phone call between the lender and broker can clarify a situation and fast-track loan approval,” Arnold said. This human touch, combined with flexibility, is becoming increasingly valued by brokers and borrowers alike.
While private lending thrives on personalised service, Arnold predicts an increasing role for technology in the sector.
“Technology will play an increasing role, combining the speed of automation with the skills and knowledge of human experts,” he said.
Improved digital tools are expected to streamline the application and approval process, but the human element will remain indispensable.
As market conditions evolve, private lenders must remain adaptable, adjusting policies, interest rates, and loan-to-value ratios as needed.
“Private lenders must be flexible in their approach,” Arnold said.
The GAP Business Loans leader believes that those who can successfully balance speed, flexibility, and a deep understanding of borrower needs will continue to be the preferred choice for brokers and SMEs in the coming decade.
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