Responsible lending is a big issue, especially for small business owners. The small business lending sector is mostly unregulated, leaving the door open for potential unscrupulous operators to enter the market unchecked. These operators generally won’t focus on what’s best for you as the client.
We’ve put together a list of five key considerations to help you find a responsible lender that puts you first:
1. Industry association
Be sure to check if the lender is a member of any professional body or industry association. This aligns the lenders’ core values with the rest of the industry.
2. Code of Conduct
Look for lenders who hold themselves accountable with a Code of Conduct. If it’s not available on their website, ask them to send you a copy.
From being up-front with fees and repayments, to telling you what will happen with your private information, responsible lenders are always open and transparent with everything.
4. Registered business
Check that the lender is a registered business with an ABN and an Australian address. This one is a big giveaway and should be a cause for concern if they can’t display this.
5. How much can you borrow?
A responsible lender will always tell you how much you should borrow based on what you need and what you can afford.
At Limba Loans, we hold integrity, honesty and transparency at the forefront of what we do. You can expect us to be up-front with both costs and loan suitability. You can also expect us to take the time to learn about your business and specific financing needs. We will inform you if we feel there are more suitable financing options available to you.