Australian finance brokers are shifting their business lending preferences, increasingly relying on non-bank lenders to deliver faster, more efficient loan approvals for small and medium businesses (SMEs).
New broker research from leading non-bank lender Banjo Loans shows that more than 40% of experienced brokers (with ≥ eight years of professional experience) are prioritising non-bank lenders in their business lending mix.
According to the new data, brokers cite speed, operational efficiency and seamless processes as the key drivers in working with non-bank lenders.
The data showed that while traditional banks continue to dominate multi-million-dollar loans, non-bank lenders are becoming the first choice for smaller SME loans, where quick access to capital and flexible solutions are critical. The survey also highlights that brokers value fast credit decisions, easy application submission, and efficient document uploads when selecting a lender.
“Experienced brokers want lenders who can move quickly, communicate clearly, and provide certainty for their clients,” said Brendan Widdowson, Chief Commercial Officer at Banjo Loans.
“We are seeing more brokers prioritising Banjo Loans and other non-bank lenders in their lending mix to meet these expectations.”
According to the study findings, brokers particularly favour non-bank for loans under $500,000, where speed and flexibility are most critical.
It showed that brokers prioritised non-bank lenders when seeking loans of $100,000–$250,000, with nearly half (48.7%) citing non-bank lenders as their first choice for this loan size. For loans of $250,000–$500,000, 43.5% of brokers said they would approach a non-bank lender first.
Around one in four brokers (26.2%) would consider non-bank lenders first for loans under $100,000, while the survey showed that loans above $2 million remain dominated by traditional banks, with just 3.1% of brokers saying they would use a non-bank lender for this loan size.
The data shows that among brokers who actively lodged applications with Banjo Loans in the past two years, satisfaction was high across all operational touchpoints. Qualitative feedback described the broker experience with Banjo Loans as “seamless,” “outside the box” and “fantastic”, often linking satisfaction to strong relationship management and decision-making.
Widdowson says this data reflects the changing expectations of brokers and their SME clients, who increasingly prioritise lenders that combine speed, reliability and a smooth application experience.
“SMEs often need capital quickly within defined limits,” Widdowson said.
“This is where non-bank lenders like Banjo Loans can add the most value for brokers and their clients.”
