Provident Capital's Top 10

10 reasons why Provident Capital should be the first choice for your clients' non-conforming lending needs:

1. Multiple Funding Lines - Need settlement certainty in dealing with lenders today? 
Tired of lenders withdrawing product lines or cancelling settlements?

Provident Capital is amongst an elite group of non-bank lenders that enjoys multiple funding capabilities through a deposit base and wholesale funding line. Provide certainty to your clients' funding requirements in these times of tight liquidity by looking to Provident Capital for all your clients' funding needs.

2. Flexibility of Funding - Being a balance sheet lender we can consider each application on it's merits, independent of it's asset class, loan size or LVR.

3. Short Term, Fixed Rate, Interest Only facilities with no DEF - With terms from 3 months to 5 years you will find the funding solution for all your clients' non-conforming lending needs.

With these terms, why deal with caveat lenders or loan sharks? Provident Capital will provide a competitive solution that your clients will thank you for.

4. All Asset Classes - Provident Capital is the one stop shop for all your lending needs. First mortgage loans are available across all asset classes including Residential, Commercial, Industrial, Rural and Construction.

5. No Loan Mortgage Insurance "LMI" - Provident Capital is not hindered by third party decision makers such as mortgage insurers. The credit decisions are retained within the team "in-house".

6. Access to Decision Makers - All of our Business Development Managers have direct access to the decision makers whether that is the Managing Director, Head of Credit or State Manager.

If you want to deal with a Company that doesn't put up barriers to your business, deal with Provident Capital.

7. True Low Doc Lending with Self Certification - Provident Capital is an experienced low doc lender who looks primarily to the marketability and saleability of the security in assessing the deal. In addition, we allow borrowers to 'self certify' their capacity to service the debt or provide confirmation from their accountant or other suitably qualified third party.

8. Speed of Response - Provident Capital has proven ability to meet your expectations on speed of funding and your dedicated Business Development Manager will be on your account to champion the deals through to settlement.

9. Longevity and Experience - In a period where non-bank lenders have come and gone, Provident Capital has 18 years experience in the market for low doc, non-conforming loans.

10. Add Value to your Business - We believe that the secret to our success has been the partnerships we have developed with our introducers which has been built upon adding value to their businesses.

Provident Capital and the global "credit crunch"

Judging by the feedback from our first 2008 eUpdate, many of you have been amazed at how quickly the crisis in global credit markets has impacted on funding sources and sent shock waves through the stock market and devastated listed companies with high levels of debt. In a few savage months we have once again been reminded that share markets can go down as well as up.

But how has it all happened? Well, with breathtaking velocity we have moved from an environment where an ever increasing appetite for risk was fuelled with ‘cheap and easy money’ to the present environment where risk averse lenders have led to a reduced capacity for financial leverage and brought with it higher funding costs.

Whilst the crisis begin with the US sub-prime market, it has now spread to Australia and impacted on the financial sector here particularly for non-bank lenders' who relied on a liquid securitisation market. Even the banking sector has been heavily hit with increased funding costs a rising concern with bad debts and an increasing focus on risk.

Many lenders are now disappearing from the market as their business models are no longer relevant when funding has either dried up or is only available at a business-ending higher cost.

But it is not all bad news.

Domestically, the impact of the sub-prime crisis has differed from the US in that the impact has been about the lack of liquidity rather than the quality of the underlying credit. Look to the difficulties experienced by RAMS as a clear example.

Notwithstanding the pressure of increasing interest rates, the Australian housing market is likely to remain firm, characterised by excess demand for rental accommodation and fuelled by high rental costs, immigration and low levels of building particularly in NSW and QLD. Having said that, consumer sentiment is likely to remain low and there may be some time before ‘confident’ purchasers return to the market.

Even considering the likely damping caused by recent interest rate rises, market experts are expecting 5-10% increase in house prices with the exception of Perth which could come in lower.

Recent comments by the Reserve Bank of Australia (RBA) have given the first sign that ‘perhaps’ the recent increase in official rates may have been sufficient to curb the inflationary demon. In fact, faced with recent data, a number of respected commentators are on the record as saying that the RBA has gone one or two rate hikes too far.

If this is the case, then the combination of a falling stock market, declining business and consumer confidence, and significantly tighter conditions in domestic credit markets could lead to an earlier and more marked slowdown in domestic spending than has been forecast. Pressure would then be on the RBA to ease monetary policy by lowering interest rates particularly if it becomes clear unemployment is rising and domestic demand is slowing. This is also likely to lead to a depreciation of the Australian dollar.

So what does this all mean for Provident Capital?

Our dual funding lines provide us with the capability to continue lending through this tight liquidity market.

Provident Capital is in an enviable position of being one of a few non-bank lenders with both a deposit base and committed wholesale funding capabilities. This dual funding line means we have the capability to continue lending through this tight liquidity market. In 2008 we’re sharper than ever.

The tighter credit market is in fact assisting our lending business as our non-banking competitors either restrict lending or withdraw from the market. Clearly brokers will continue to direct lending possibilities to financiers with known capability to settle transactions.

Our product line is also expanding. We have launched the new Provident Platinum product aimed at the ‘rural residential'. This month we anticipate launching a new lending product aimed at funding for self managed super funds without personal or trust guarantees. Amongst answering the cries of ‘help’ from brokers looking to place deals in this tight market our BDMs will be available to update you on these exciting opportunities.

Whilst non-code regulated residential lending has been our strongest performing sector, increased activity has been experienced in all sectors – residential, commercial, industrial and rural.

The tighter credit markets are proving to be a boon for Provident as we experience stronger than ever lending activity. If you need a reliable non-bank lender to deliver on your clients lending needs, look no further than Provident Capital.

Contact Us

If you have any questions about our lending solutions please contact one of our Business Development Managers today on 1800 668 008 or email broker@providentcapital.com.au. You can also find additional information on Provident Capital’s lending solutions on our website: www.providentcapital.com.au.