The new
generation.
The private market for finance is not what it used to be.
That’s a good thing.
It’s given rise to a new generation of private lenders – like us – and brokers who want to do things differently. We are all taking the industry in a new direction and disrupting the behaviour of the past. At Jadig Finance, we provide a young, fresh and passionate approach with the backing and support of two generations of family first- hand lending expertise.
Here’s what else you need to know.
The changing landscape
There are over 600 non-bank lenders and financiers now in the Australian market – also us – providing a range of services outside the traditional big four banks. And while private lending has been around for decades, it has at times become a magnet for predatory behaviour, partly because the industry is unregulated, with no Australian Prudential Regulation Authority (APRA) regulation, nor banking licences required. Behaviour such as lenders issuing bogus term sheets, outrageously high default rates and high upfront costs with highly restrictive conditions have all taken advantage of borrowers in vulnerable positions. For a long time, private money was seen as a last resort, only used when there was a problem, or avoided altogether because of the high risk.
But in recent years, the private finance market has evolved due to fundamental changes to the processes of lending and lending risk appetite. The main change is that stricter lending regulations have reduced the banks appeal, opening the market to new entrants. The increased competition has reduced the cost of private finance substantially – in line with interest rates across the country. By making money easier to access, more developers can source capital, more projects can get funded, and more buildings can be constructed. In fact, the majority of construction projects on any high street today are either entirely, or at least in part funded by private money – that’s a huge shift from the past.
How we fit in
Quite literally. Private developers are now coming to us on the front foot as an alternative to the banks from the outset. They recognise the value add we provide, and that we are genuine partners, not just a capital source. The new generation of private lending is transparent about where capital comes from, and while not the cheapest option, offer solutions the banks simply can’t match. As a result, the developers we work with put our banners on the front of their buildings. And we love it. It demonstrates their trust in a business like ours, and confidence in us personally.
It’s worth knowing, we own and operate our own Australian Financial Service Licence (AFSL). And we are dedicated to appropriate ethical practices with all directors and staff educated in the accounting, finance, construction, and property industries. Furthermore, we are recognised as reporting entities providing designated services under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
Family matters
It’s not just our expertise that our sponsors value. It’s our family values too – we do the right thing by others and we do it well. We like being liked. There are no stuffy suits or skyrise boardroom images to be found in our branding – instead a commitment to lend money to support quality projects by developers seeking to build something special over the long-term.
We now offer a suite of products with pricing that provides certainty across the project, rather than a short-term fix.
We look at every project, every detail and every input to help our sponsors make smart business decisions. We’re a family business that wants to uphold our core values while supporting projects that shape our communities – and we’re proud to be the new generation of private lending, doing it differently.
