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Growth in alternative lending has driven N1 Holdings Limited (N1H) to boost its lending capital, the company has confirmed.
Property-backed business N1 Holdings Limited (N1H) has continued to expand its small- to medium-sized business (SME) lending capacity, taking it to $115 million, the company confirmed on Wednesday (25 January).
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According to N1H, since its last announcement confirming available lending capital (30 May 2022), it has “received commitments” for an additional $15 million in debt capital. This takes the total lending capital that the company can access and manage to over $115 million.
N1H’s executive chairman and chief executive Ren Hor Wong stated: “The industry and mortgage broking community are seeing growth in alternative lending, especially in the property-backed sector that enables SME owners to tap into property equity for more affordable and flexible SME financing.
“N1H’s recent divestment of its property management business to streamline its business model and this new increased funding capacity will propel N1H’s growth in alternative lending.
“The pooled capital model empowers N1H’s capacity to fund deals quickly, a game-changing competitive advantage amid the rising-rate and complex lending environment.”
Residential and commercial property security
As N1H confirmed, the sources of its lending capital under management comprise balance sheet capital, debt facilities, and capital managed under the company’s SME mortgage funds.
The company’s SME mortgage funds are wholesale, property-backed pooled mortgage funds that specialises in short-term SME lending and “typically provide loans with a six- to 36-month maturity” and are managed by N1H via its wholly owned subsidiary, N1 Asset Management (AFSL 477879).
N1H SME lending and its SME mortgage funds are secured with mortgages over Australian residential and commercial real estate predominantly based in NSW, Victoria, Queensland, and South Australia, the company outlined.
N1H is positioned as a property-backed SME lender “working alongside accountants and mortgage brokers, with a focus on complex lending servicing sophisticated property investors and SME owners,” it highlighted.
Additionally, the company runs a mortgage management business providing branded home loans and commercial property loans, N1 Plus, it explained. The N1 Plus product focuses on “the niche of prime, near prime and specialist products, it added.
The changing lending environment
N1 Holdings provides strategic advice to businesses, project developers, and property investors seeking new capital/debt or refinancing existing debt, it stated.
“We assist borrowers through the complex application processes of Australian major banks, private funds, and offshore debt capital providers,” it highlighted.
N1H explained that with the growth in lending from non-traditional sources, such as alternative banks and non-bank funders and lenders, the company’s domestic and foreign strategic relationships “perfectly [place] it to advise its clients through this changing lending environment and debt market.”
Core services include business lending, cross-border corporate financing, project funding, fund trustee services, and vendor finance solutions, N1H said.
[Related: N1 secures $10m for SME lending]
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