Woodbridge Capital Brings Transparency to Non-Bank Lending

As the Australian non-bank lending market continues to grow at a rapid pace—some estimates have it as high as 20 per cent—non-bank lenders are under increasing pressure from investors and borrowers to be far more transparent.

Woodbridge Capital co-founder and managing director Andrew Torrington said that the non-bank market is changing quickly, and investors and borrowers are increasingly demanding transparency.

“Transparency is a fundamental element that fosters responsible lending practices, maintains the integrity of the lending ecosystem, and supports the growth and sustainability of non-bank lending institutions” Torrington said.

“Our business was born out of a desire to be different, and being transparent in an industry that is notoriously opaque, is a big part of what makes us different.”

‘Very ethical’

For example, Woodbridge recently settled a $17-million townhouse development in Melbourne with GLB Glenrich. Glen Hopkins from GRB Glenrich Builders said Woodbridge’s good working relationships and honest communications had been key to their project.

“Woodbridge’s transparency between client and builder was very ethical in the way they worked to get our loan over the line,” he said.

“The team has worked harmoniously with us to create a great level-headed environment and Woodbridge came highly recommended from our finance consultant. As experienced developers, we were searching for a complete finance solution without the uncertainty of the Big 4 banks—and Woodbridge delivered.”

Woodbridge executive director Sam van Praag said borrowers were starting to understand why transparency was so important.

“Transparency has emerged as a key factor in fostering trust and maintaining healthy relationships between us and our borrowers. Transparent lending practices not only benefit us by enhancing our credit risk but they also have profound advantages for borrowers, ensuring they are well-informed, empowered and set on a path to financial success,” he said.

Unblemished record

Van Praag, Torrington and Matthew Samuels set up Woodbridge Capital early last year after leaving non-bank lender Merricks Capital. 

The team has a combined track record spanning more than 30 years across property finance, real estate investment, development and construction and have collectively deployed and managed more than $5 billion of loans during the past 10 years with zero loan impairments.

Being a transparent lender goes beyond fulfilling regulatory requirements; it is a commitment to establishing a genuine partnership with borrowers.

The benefits of transparent lending extend far beyond the immediate loan transaction.

Building trust

By empowering borrowers through informed decision-making, preventing hidden costs, building trust, providing financial education, facilitating problem resolution and potentially improving credit profiles, transparent lenders contribute to the financial well-being and success of their borrowers. 

As the non-bank lending landscape continues to evolve, embracing transparency remains a crucial step towards a more equitable and prosperous non-bank lending market.

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