Mortgage Brokers Are Challenging Banks in Commercial Lending — What It Means for Business Owners

Banks have long dominated Australia's commercial lending landscape, but that grip is loosening. Industry publication The Adviser reports that mortgage brokers — backed by non-bank lenders — are increasingly capturing commercial finance business that was once the exclusive domain of major banks.

The Structural Shift Underway

According to The Adviser, the assumption that major banks will continue to dominate commercial finance distribution "without serious competition is becoming harder to defend." Several structural factors are driving this change:

• Processing speed: Non-bank commercial lenders typically approve and settle faster than major banks, whose committee-based credit processes can take weeks
• Policy flexibility: Non-bank lenders assess each commercial deal on its merits rather than rigid policy matrices designed for standard residential deals
• Broker specialisation: As more brokers develop commercial lending expertise, their ability to structure complex non-bank deals improves
• Rising rate pressure: At 4.10% cash rate, SMEs are scrutinising every basis point, driving demand for competitive non-bank alternatives

What Commercial Borrowers Are Finding

Small and medium business owners seeking commercial property finance are discovering that non-bank lenders can offer genuine advantages:

Property Types Non-Bank Lenders Finance

MPFG Capital and similar non-bank lenders can finance a wide range of commercial property types that major banks increasingly avoid:

• Retail premises: Shops, strip retail, neighbourhood centres
• Industrial: Warehouses, logistics facilities, manufacturing units
• Office: Strata offices, professional suites
• Mixed-use: Ground-floor commercial with residential above
• Development sites: Land with commercial development approval

The Alt Doc Advantage in Commercial Lending

For self-employed business owners, Alt Doc assessment is particularly valuable. Rather than relying on averaged tax returns that may not reflect business growth, MPFG Capital can assess serviceability using:

• BAS statements showing business GST turnover
• Accountant-prepared profit and loss statements
• Business bank account statements for the past 12 months
• Rental income statements for investment properties

This means a business owner who has recently grown their revenue, or who structures their affairs tax-efficiently, is not penalised in the same way they would be at a major bank.

MPFG Capital's Commercial Lending Offering

MPFG Capital provides commercial property loans to Australian businesses and investors, with a focus on self-employed borrowers and SMEs who have been underserved by major banks. Key features:

• Loans for retail, office, industrial, and mixed-use commercial properties
• Alt Doc assessment available for self-employed business owners
• LVR up to 75% on eligible commercial properties
• Local presence in Melbourne, Sydney, and Brisbane
• Competitive rates with flexible loan terms

For business owners who have been turned away by a major bank, or who simply want a faster and more flexible process, non-bank commercial lending is a growing and credible alternative.

This article is for informational purposes only and does not constitute financial advice. Contact MPFG Capital to discuss your commercial lending needs. MPFG Capital holds ACL 553698.