As Australia’s economy grows, mid-market companies are key drivers of job creation and innovation. According to the Australian Bureau of Statistics, these businesses employ 20 to 200 people, while the Australian Taxation Office defines them as having annual group turnover between $10 million and $250 million. However, accessing traditional bank loans can be challenging for these firms, often hindering their ability to expand.
Mid-market businesses can frequently encounter obstacles when seeking financing. Banks, constrained by strict regulations, may lack the flexibility to meet their needs. Common challenges include:
- Complex financial obligations: Many mid-market firms have outstanding debts, such as tax liabilities with the ATO, which can make traditional loans difficult to obtain.
- Unconventional income sources: Some businesses generate revenue from non-traditional clients or industries, which may not align with standard bank lending criteria.
Private credit offers a solution by providing customized financing options that empower mid-market businesses to seize growth opportunities.
At GAP Business Loans, we recognize that private credit delivers the speed, adaptability, and tailored solutions mid-market businesses need. Private lenders like GAP can design loans to match a company’s specific goals, whether for expansion, working capital, or refinancing.
A major benefit of private credit is its flexible lending criteria, which reduce the administrative burden often imposed by banks. Traditional lenders frequently include clauses requiring ongoing reviews of property valuations, loan-to-value ratios, and debt-to-income metrics. For mid-market businesses, loans without these continuous assessments are more appealing, allowing them to prioritize growth over paperwork.
Additionally, private credit offers unmatched service and speed. Its streamlined processes enable businesses to access funds quickly, helping them capitalize on time-sensitive business opportunities like new projects, investments, or expansions in the dynamic mid-market landscape.
Peter Arnold, a director at GAP Business Loans, manages broker relationships and serves on the credit assessment committee. With over 30 years of experience in private capital management, Peter brings expertise in finance and property across various asset classes. He has previously served on the boards of several funds management companies and co-founded Austgrowth Property Syndicates.