Non bank lender

What is a non bank lender?

A non bank lender is any lender that is not an authorised deposit-taking institution (ADI). It does not hold a banking licence under the Banking Act, does not take customer deposits, and is not regulated by APRA as a bank. Funding for the loan book comes from a mix of wholesale debt markets, securitisation programs, private capital, family-office balance sheets, and specialist funds.

"Non bank lender" covers a broad spectrum: large securitised consumer home-loan players (Pepper, Liberty, Resimac), specialist commercial and SME lenders, asset finance lenders, short-term business loan providers, and private credit lenders writing first and second mortgages against real estate. Each segment has its own pricing, policy and regulator footprint.

How is a non bank lender regulated in Australia?

Two regulators apply, depending on the loan purpose.

Business and investment lending — ASIC under AFSL

For loans written for business or investment purposes (most private credit, most commercial property lending, most short-term business loans), the lender operates under an Australian Financial Services Licence (AFSL) issued by ASIC. AFSL holders are bound by Chapter 7 of the Corporations Act, hold professional indemnity insurance, and are members of AFCA for external dispute resolution.

Consumer credit — ASIC under ACL

For loans regulated under the National Consumer Credit Protection Act 2009 (NCCP) — primarily owner-occupier home loans and personal loans — the lender holds an Australian Credit Licence (ACL). The NCCP regime imposes specific responsible lending and disclosure obligations on consumer credit providers.

Archer Wealth lends under AFSL 548263 (held by Archer Wealth Capital Pty Ltd) and writes business and investment loans only, not regulated consumer credit.

Non bank lender vs bank — the practical differences

• Funding source. Banks fund primarily from retail deposits and the wholesale market. Non bank lenders fund from wholesale debt, securitisation, and private capital.
• Regulator. Banks are regulated by APRA as ADIs. Non bank lenders are regulated by ASIC under AFSL and/or ACL.
• Speed. Non bank lenders typically decision files faster — same-day indicative terms, days to settlement on cleaner files versus weeks to months at the banks.
• Policy flexibility. Banks decision files primarily against documented policy and serviceability calculators. Non bank lenders apply commercial judgement to the security, sponsor and exit on each file.
• Pricing. Banks typically win on long-term rate for files that fit their policy. Non bank pricing is higher to reflect the cost of non-deposit funding and the shorter-dated nature of the facilities.
• Product set. Non bank lenders write products the banks rarely do: short-dated bridging, second mortgages, capitalised-interest facilities, low-doc business loans against equity.

When does a non bank lender make sense?

The pattern is usually one of three: the file is sound but outside standard bank policy on income evidence, security type or transaction speed; the borrower needs to settle faster than a bank credit process allows; or the structure required (bridging, second mortgage, capitalised interest, short-dated facility) is not something the majors offer.

For a fuller comparison, see private credit vs bank lending.

Where Archer Wealth fits in the non bank market

Archer Wealth is an Australian non bank lender (AFSL 548263) writing real-estate-backed business and investment loans through accredited brokers. Six-product lending suite covering residential and commercial first mortgages, second mortgages, bridging, fast settlement, commercial property and vacant land. Indicative terms same business day, settlement within 5 business days on cleaner files.

See the lending suite for product detail, or the private credit page for the broader asset class context.

How to choose a non bank lender

Three things matter more than headline rate.

• Licence and dispute resolution. Confirm the AFSL (or ACL) number on the lender's website matches the ASIC professional registers. Confirm AFCA membership for external dispute resolution.
• Credit team access. Strong non bank lenders have a credit team that makes real decisions on files. Ask your broker how decisions are made and at what level.
• Funding source transparency. Where the lender sources its capital affects how it underwrites, prices and behaves through cycles. Reputable lenders are comfortable answering this question.

Frequently asked

• What is a non bank lender?
  A non bank lender is a lender that is not an authorised deposit-taking institution (ADI). It does not take customer deposits and is not regulated by APRA as a bank. Funding comes from wholesale debt markets, securitisation programs, private capital, or a combination. In Australia, non bank lenders are regulated by ASIC under an Australian Financial Services Licence (AFSL) and, where they write consumer loans, an Australian Credit Licence (ACL).
• How is a non bank lender regulated in Australia?
  Two regulators apply, depending on the loan type. For business and investment loans, the AFSL conduct framework applies (administered by ASIC under Chapter 7 of the Corporations Act). For consumer credit, the National Consumer Credit Protection Act (NCCP) applies through an ACL. Non bank lenders hold professional indemnity insurance and are members of an external dispute resolution scheme (AFCA).
• What is the difference between a non bank lender and a bank?
  Banks are authorised deposit-taking institutions regulated by APRA under the Banking Act. They fund lending primarily from retail deposits. Non bank lenders are not deposit-takers and are regulated by ASIC. Banks usually win on rate and standard policy fit; non bank lenders win on speed, structuring flexibility and capacity to write files outside standard bank policy.
• Are non bank lenders safe to borrow from?
  Reputable non bank lenders are AFSL-licensed, AFCA members, and carry professional indemnity insurance. Borrowers should check the AFSL number on the lender's website matches the ASIC professional registers, confirm the lender or its broker channel is on the relevant industry body register, and read the loan documents carefully before signing. As with any lender, the safeguards depend on the licence holder operating within the rules.
• When does a non bank lender make sense?
  Three main patterns. First, the file is sound but does not fit bank policy (income evidence, security type, transaction speed). Second, the borrower needs to settle faster than a bank credit process allows. Third, the structure required (bridging, second mortgage, capitalised interest, short-dated facility) is not something the major banks offer.
• What does a non bank lender charge?
  Pricing varies widely by product, security and risk. As an indicative range, Archer Wealth pricing starts from 6.99% p.a. on prime residential first mortgages, from 7.99% p.a. on commercial first mortgages, with establishment fees on bridging from 1.25% of the facility. Specialist non bank lenders (sub-prime, second-tier consumer, short-term business loans) sit higher.
• Do non bank lenders write home loans?
  Some do — there is an established non bank consumer home loan market in Australia regulated under the NCCP. Archer Wealth is not in this market. Archer Wealth writes business and investment loans only, through accredited mortgage brokers, under AFSL 548263.
• Can I borrow directly from a non bank lender?
  It depends on the lender. Some non bank lenders write retail consumer files directly; others operate broker-channel only. Archer Wealth lends exclusively through accredited brokers — direct borrower applications go through the borrowers hub to be matched with an accredited partner.