Brokers choose non-banks for speed and banks for scale

A new survey of brokers by non-bank lender Banjo Loans found that more than 40 per cent of experienced brokers (those with eight or more years in the industry) are now prioritising non-bank lenders in their business lending mix, particularly for smaller SME loans where speed and efficiency are critical.

The study is based on a survey of 334 brokers between 22 October and 4 December 2025.

The data shows that while banks continue to dominate larger, multimillion-dollar business loans, non-bank lenders are emerging as the preferred option for lower-value lending.

According to the survey, brokers most strongly favoured non-bank lenders for loans under $500,000.

Nearly half (48.7 per cent) said a non-bank lender would be their first choice for loans between $100,000 and $250,000, while 43.5 per cent preferred non-bank lenders for loans of $250,000–$500,000.

Around one in four brokers (26.2 per cent) would also consider non-bank lenders first for loans under $100,000.

By contrast, loans above $2 million remain dominated by traditional banks, with just 3.1 per cent of brokers saying they would approach a non-bank lender first for transactions of this size.

Brokers cited faster approvals, operational efficiency, and more seamless processes as the main reasons for favouring non-bank lenders.

Broker Daily recently reported on a survey by Agile Market Intelligence, which found that half of brokers surveyed had used at least one non-bank lender in December 2025, the key reason being their clients’ circumstances.

“Experienced brokers want lenders who can move quickly, communicate clearly, and provide certainty for their clients,” said Brendan Widdowson, chief commercial officer at Banjo Loans.

“We are seeing more brokers prioritising Banjo Loans and other non-bank lenders in their lending mix to meet these expectations.”

The survey also highlights differences in what brokers value when choosing lenders, with fast credit decisions, easy application submission, and efficient document uploads ranking highly for non-bank selection.

Widdowson said the findings reflect evolving broker and SME expectations.

“SMEs often need capital quickly within defined limits,” he said.

“That’s where non-bank lenders can complement the role banks continue to play in larger transactions.”

[Related: SMEs increasingly turning to non-banks for finance needs]