ADS Platform User Types
Lenders are providers of finance. Within the ADS Platform, they can be either bank lenders or non-bank lenders. Bank lenders would typically have a cheaper cost of capital and be able to provide much cheaper loans than a non-bank lender, however would scrutinize the loan scenario more and may ask additional information. Non-bank lenders can be more flexible than bank lenders and can move quickly however their pricing can be much more expensive.
Brokers are intermediaries who would typically be acting for the borrower to obtain a loan. They should be responsible, professional and have a good understanding of financial markets. Their job is to assist borrowers, explain the financing process and secure competitive offers on behalf of the borrower. Brokers would typically be paid a commission from the settlement of the loan for their services, as such are incentivised to ‘get a deal done’. Sometimes brokers will charge upfront fees to commence work on a loan. The broker costs can sometimes increase the total cost to the borrower for the loan. Borrowers should always seek to understand what fees are payable to brokers and brokers should be transparent about their fees.
Borrowers are users looking for finance. They can be companies looking for a business loan, property developers looking for construction finance or consumers looking for home loans. Some borrowers have a deep understanding of finance and know exactly what they are looking for and would use the ADS Platform to obtain competitive offers. These borrowers are less likely to require the services of an intermediary/broker. Other borrowers are less knowledgeable of finance and would appreciate the help of an intermediary/broker to guide them and explain the process of obtaining a loan.