Unlocking Non-Bank Capital as a Key to Future Financial Growth
Is bank lending going to remain tight? Let’s look at a tale of two stats.
By the numbers:
- Regional and community banks hold over 30% of all commercial real estate loans booked before 2023 and maturing in the next 4 years.
- In a recent Sawbux survey of 300+ regional and community bank credit managers, 55% had loan portfolios priced more than 150bps under what current market rates could yield.
Why it matters: The banking system has done a great job building deposits to weather any potential liquidity pressures.
- Yes, but: The stats above indicate that it’s going to take time to work out from under loan pricing and collateral positions that are unfavorable. In the interim, lending is likely to remain tighter.
What they’re saying: Bank credit managers’ own self-reporting backs up this forecast.
- 31% of credit managers expect lending volumes to decline further by year end.
- 55% expect lending volumes stabilize but not improve.
- Just 17% of credit managers expect lending volumes to improve.
- And only 11% believe credit standards might loosen by year-end.
The takeaway for brokers: Offering readily available, non-bank capital remains a powerful opportunity for the foreseeable future.
TimePayment can help. Financing equipment starting at $500 and reaching $500,000 and beyond, with a long history of serving brokers and their customers, TimePayment has the flexible finance solutions and technology tools you need to thrive in this market.
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