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For most of the past year, scrutiny of Australia's private credit market has been a story about funds. Disclosure, valuations, redemptions. ASIC's newly released 2026-27 corporate plan quietly moves the spotlight somewhere else. Not away from private credit, but further down the chain, toward the lenders who write the loans and the terms borrowers actually sign.
ASIC has been clear about where its attention is turning. The regulator plans to examine non-bank lending practices that lead to poor outcomes for small business borrowers, with unfair contract terms specifically in focus.
But the scrutiny goes beyond the contract itself. ASIC has also pointed to the way financial products are distributed and serviced, recognising the growing role brokers and other intermediaries play in shaping borrower decisions.
The shift is significant. ASIC is no longer looking only at what a lender offers, but at the entire path to the borrower: how the loan is presented, how its terms are explained and, ultimately, what the borrower agrees to.
For a private lending market built on speed and flexibility, that brings both lenders and brokers into sharper focus.
Contract fairness can sound abstract until you see what it means in practice. It might be a default clause broad enough to be triggered by a change in the borrower’s circumstances, rather than genuine non-payment. It could be a lender retaining the right to change rates or fees without clear limits or reasonable notice, or an exit fee that bears little relation to the actual cost incurred.
These terms are not necessarily difficult to identify. The problem is that they can be difficult to understand when they are buried in complex language or unclear drafting. A fair contract should make the borrower’s obligations, costs and consequences clear from the outset, not leave them to be discovered when something goes wrong.
That is where the opportunity for private lenders lies. Fairness should not be treated as a new regulatory standard to work around. For a well-run lending business, it should already be reflected in contracts that are clear, proportionate and written to be understood, rather than defended after the fact.
Brokers are an important part of this shift. ASIC’s focus is not limited to the lender writing the loan, but extends to how that loan reaches the borrower and how its terms are communicated along the way. As the intermediary between the two, brokers have a role in understanding the lenders they recommend and the contracts they put in front of clients.
That makes lender selection about more than rates, speed and appetite. Clear, fair terms are becoming an increasingly important part of the equation. For brokers, that creates an opportunity to choose lending partners whose contracts they can confidently explain and stand behind.
In a market facing greater scrutiny, that confidence carries weight. A recommendation backed by clear terms is stronger for the borrower, stronger for the broker and ultimately stronger for the lender.
Non-bank lenders have traditionally competed with banks on speed and flexibility. But as those qualities become expected across the sector, the next point of difference may be clarity.
The lenders that stand out will be those whose terms are clear from the outset and easy for borrowers, brokers and advisers to understand. No unnecessary complexity. No surprises buried in the fine print.
That makes clear, fair contracts more than a compliance requirement. They can become a genuine competitive advantage, building confidence with borrowers and giving brokers greater confidence in the lenders they recommend.In a market where speed is increasingly expected, clarity could be what sets a lender apart.
ASIC’s direction is clear. The focus is moving deeper into non-bank lending, drawing a sharper line between lenders built on clear, fair terms and those that still rely on complexity in the fine print.
The expectation is equally clear. Default triggers should be understood. Rates and fees should be transparent. Exit costs should be known before a borrower signs. A contract should leave no ambiguity about what the borrower is agreeing to or what happens when circumstances change.For lenders, that makes clarity more than a compliance requirement. It becomes a reflection of how the business operates and a reason for brokers and borrowers to choose one lender over another.
For brokers and borrowers, the takeaway is simple: understand the terms and choose lenders prepared to stand behind every one of them. The best lenders should have nothing in the fine print they wouldn’t put on the front page.
This article is intended as general information only and should not be relied upon as financial, credit, tax or legal advice. Every situation is different. Before making any financial or commercial decision, seek independent professional advice that takes your individual circumstances into account.
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