7.1 The Rise of Non-Bank Capital
The Private Credit market is no longer the "lender of last resort." As traditional banks maintain conservative buffers, this sector has exploded to become a sophisticated alternative for borrowers who don't fit the "vanilla" mold.
Driven by self-employed clients and those with minor credit impairments, not just "bad debt."
Borrower Composition
Broker Insight
Specialist lenders like Resimac, Liberty, and La Trobe Financial are filling a structural gap. This is a massive opportunity for brokers to diversify beyond major banks.
7.2 The "Life Event" Methodology
Instead of a binary "Credit Score" rejection, lenders like La Trobe Financial analyze why a default occurred. Use this methodology to create a "Client for Life."
Interactive Strategy: The "Rehab" Loan
Click the timeline to see the broker's role.
The Event
Year 0The Rehab
Years 1-2The Graduate
Year 3+7.3 Resimac's Aggressive 2025 Play
Resimac has updated its credit policy to aggressively target self-employed clients. This is crucial for clients with a strong FY25 but a weak FY24.
Key Policy Shift
Uses BAS or Accountant's Letters instead of tax returns. Perfect for post-COVID recovery businesses.
7.4 Private Credit for Business Growth
For SMEs, the cost of the loan is often secondary to the speed of funding. Private lenders like PMA offer a distinct speed advantage.
Time to Funding Comparison
1 Use Case: Developer
Needs fast capital to reach lock-up stage. Bank takes too long; private credit bridges the gap.
2 Use Case: Stock
Business needs working capital immediately to buy discounted stock. Opportunity cost > Interest rate.