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Featuring insights from Ben Skilbeck, CEO, GCI, Matthew Porch, Head of Distribution, Aquamore, and Phillip Meehan, Director Origination, Arch Finance.
Matthew Porch points out that private lending has matured dramatically from what it once was.
“It’s no longer the cloak and dagger space it used to be,” he said. “Private lenders are now appearing on major aggregator panels; it’s become much more sophisticated.”
Once viewed as opaque or risky, private lending today is defined by stronger governance, institutional funding, and transparent credit processes. This shift gives brokers confidence to recommend private options when banks can’t provide solutions.
Private lenders are known for their speed and flexibility. They can move fast, structure complex deals, and fill funding gaps where banks can’t. But not all are created equally.
“More often than not, that term sheet hasn’t even been to credit yet.” - Matthew Porch
“Some private credit shops raise money on a deal-by-deal basis rather than having funds ready to deploy,” he explained. “That can leave clients in the lurch and exposed.” – Ben Skilbeck
In those cases, clients might pay upfront fees, only to discover the funding never existed. Beyond the financial loss, there’s a reputational cost – one that can follow both the broker and the client long after the deal falls through.
For brokers, the takeaway is simple: verify the lender’s funding structure and track record.
As competition heats up, some funders may take riskier deals or include hidden traps in their loan documentation. Skilbeck urged brokers to watch for “hair triggers” – clauses that can trigger penalty interest or early repayment demands:
“You might see a lender offer an attractive rate, then six months later the client is paying an extra four or five percent they didn’t expect,” he warned.
Other lenders, he added, have begun charging interest before conditions precedent are met, or funds are even drawn – a red flag brokers should spot early.
These examples underline the broker’s evolving role. It’s no longer just about matching a client to a lender – it’s about protecting them through insight, transparency, and strong process.
“The key is understanding your client’s needs and acting as an adviser, not just someone seeking to clip the ticket,” he said. “Transparency with borrowers and lenders protects everyone involved.”
For Phillip Meehan, the difference between a good and a great broker comes down to properly understanding their clients and building a solid plan.
“The best brokers are realistic about exit strategies,” he said. “Private credit is often an interim solution before a client becomes bankable again.”
He added that successful brokers take time to understand cash flow, interest cover ratios, and capitalisation risk and ensure their clients do too.
Great brokers combine commercial acumen with integrity. They protect clients through diligence, honesty, and practical guidance – values that continue to define Connective’s community.
“Private lending is a core part of commercial finance - but not every lender’s built the same. We back the ones who are proven, transparent, and here for the long haul, so brokers can move fast and trust who’s behind the deal.” – Brent Starrenburg
Private lending is a major part of the commercial finance landscape, opening up real opportunities for brokers and their clients. But with so many new players entering the market, it’s never been more important to know who you’re dealing with. Not every lender has stable funding, strong governance, or a track record to match their promises. That’s why Connective takes the time to vet every private lender on our panel - so brokers can focus on finding solutions, knowing their clients are in safe hands and the funding behind the deal is real.
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