Understanding Unregulated Business Loans

In the modern economy, whether for business development, asset finance, bridging loans or other funding needs, it seems to be a growing trend in Australia for borrowers to approach non-traditional lenders in an attempt to avoid the comparatively stringent requirements associated with Australia's conventional bank lenders.

The National Credit Code (NCC) and National Consumer Credit Protection Act 2009 (Cth) set out the national framework under which credit agreements are regulated, including under the following circumstances:

1. where the lender is in the business of providing credit;
2. a charge is made for providing credit;
3. the borrower is a natural person or strata corporation; and