The Australian Securities & Investments Commission (ASIC) has sent a strong message to the market: private lenders need to lift their game.
A recent review of the $200 billion private lending sector, commissioned by ASIC and led by industry heavyweights Richard Timbs (infrastructure investment executive) and Nigel Williams (former banker and chief risk officer), uncovered troubling practices that raised concerns about borrower protections and risk management.
While private lending has grown significantly in Australia, offering alternative funding options outside of the traditional banks, ASIC’s review highlights the need for greater transparency and stronger standards across the sector. The findings point to issues such as inconsistent due diligence, varying disclosure practices, and a lack of uniformity in how risks are communicated to borrowers.
For individuals and companies seeking finance, the review is a reminder of the importance of understanding exactly who you’re borrowing from and what the terms really mean. Unlike regulated bank products, private lending operates in a more complex space that can carry higher risk if not approached carefully.
With regulators calling for tighter oversight, borrowers will want to be sure they’re working with the right lender and securing terms that make sense for their circumstances. That’s where a broker adds real value. A good broker filters through the noise, identifies trustworthy lenders, and ensures the finance solution is transparent and appropriate.
At Motorlend, we take these updates seriously. Our role is to simplify the process, protect our clients from potential pitfalls, and connect them with finance options that stand up to scrutiny.
In an environment where regulators are tightening their watch, having a broker by your side means having peace of mind that your finance is in safe hands.
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