For decades, Australia’s lending landscape was comfortably predictable.
The major banks controlled distribution.
They dictated credit appetite.
They set the tempo of funding.
Brokers worked within defined credit policy boundaries.
Borrowers adapted accordingly.
That equilibrium has shifted.
Private lenders — once viewed as niche or situational capital — now operate in direct proximity to mainstream banking. In segments of SME, property-backed and transitional funding, they are no longer peripheral.
In many cases, they are the first call.
The next structural evolution is inevitable:
Private lenders must secure placement on aggregator panels.
And aggregators must actively integrate them.
The Gatekeepers of Distribution
Australia’s broker ecosystem is shaped overwhelmingly by aggregators.
Groups such as AFG, Connective, Mortgage Choice, PLAN Australia and FAST collectively represent thousands of brokers across metropolitan and regional markets.
They are not mere introducers.
They are infrastructure.
Each provides:
- Compliance oversight
- Commission management
- Technology platforms
- Education and professional development
- Risk governance frameworks
For a lender, panel inclusion signals legitimacy.
For brokers, it provides confidence.
For borrowers, it delivers protection.
Panel placement is not symbolic — it is structural validation.
Why Private Lenders Are Gaining Ground
Regulatory tightening from APRA and oversight from ASIC have strengthened system stability. That stability, however, has narrowed flexibility.
Banks must manage:
- Capital adequacy ratios
- Risk-weighted asset exposure
- Prudential buffers
- Shareholder expectations
The result is predictable. Credit appetite contracts in areas such as:
- Short-term bridging
- Complex construction funding
- Tax debt settlements
- Equity release without full refinance
- Transitional commercial restructures
Private lenders assess differently.
Their model is typically:
- Asset-first
- Exit-strategy driven
- Short duration
- Commercially negotiated
They compete on speed and certainty — not price alone.
The Role of Aggregator Panels as a Discipline Mechanism
Not all private lenders operate at the same standard.
There are disciplined operators with:
- Documented credit policies
- Transparent fee structures
- Stable capital lines
- Defined underwriting frameworks
There are also poorly governed participants who overprice risk, underwrite loosely or lack capital certainty.
This is where aggregator panels become essential.
They serve as a filtration system.
Panel inclusion typically requires:
- Professional indemnity coverage
- Responsible lending frameworks
- AUSTRAC alignment
- Documented compliance processes
- Operational governance standards
In effect, aggregators elevate private lending standards through structured oversight.
Panel integration does not dilute discipline.
It enhances it.
Why Australian SMEs Are Turning to Private Capital
SMEs operate in real time.
A builder awaiting progress payments.
A hospitality operator resolving an ATO position.
A commercial landlord refinancing a maturing facility.
Time is rarely negotiable.
Private lenders offer:
- Defined settlement timelines
- Interest-only or capitalised structures
- Clear short-term horizons
- Certainty of execution
Importantly, many borrowers are strategic not distressed.
They use private credit as tactical capital, stabilising a transaction before refinancing back to a bank once conditions normalise.
Private credit is increasingly transitional, not terminal.
Complementary, Not Competitive
Banks remain Australia’s lowest-cost long-term funding source.
Private lenders dominate transitional funding.
The most sophisticated transactions increasingly involve both.
The question is no longer whether private lenders compete with banks.
The more relevant question is:
Does the aggregator ecosystem reflect the full spectrum of viable capital solutions available to brokers?
If brokers are to serve clients comprehensively, their distribution channels must provide access to the full capital stack.
The Structural Reality
Private capital is not a fringe segment anymore.
It is embedded in:
- Commercial property transactions
- SME restructuring
- Development bridging
- Transitional liquidity solutions
Aggregator panels that actively integrate disciplined private lenders provide:
- Greater broker flexibility
- Better borrower outcomes
- Stronger governance alignment
- Reduced reputational risk
Distribution structures should not lag market evolution.
They should reflect it.
Final Thought
The Australian lending market is not fragmenting.
It is diversifying.
Private lenders are no longer situational.
They are structural.
The quiet power shift has already occurred.
The only remaining question is whether aggregator panels formally recognise it.
Because at the end of the day, distribution architecture exists for one purpose:
To help brokers deliver the best possible outcome for their clients.
And that outcome increasingly requires access to both bank capital and disciplined private credit.