Dealing With Half-Bankable Clients
Every broker knows the frustration of the half-bankable client. They have a solid business. They have security. On paper, they should get a “yes”. Yet one or two hurdles stop the banks in their tracks.
These clients sit in a grey zone. They are too strong to be written off, but not quite aligned with traditional credit boxes. At a recent Sydney seminar hosted by Hermes Capital, a panel of industry experts explored why these cases are becoming more common, what they reveal about today’s lending environment, and how brokers can structure workable solutions without wasting time or damaging client relationships.
The discussion covered legacy issues, complex ownership and financial structures, and the ongoing tightening of bank credit policies in the post-COVID environment. Panellists also examined the growing role of alternative finance, the rise of private credit, and the importance of clear, transparent communication between brokers, clients, and lenders. For brokers and business owners navigating financial pressure, the session offered practical guidance on working through an increasingly constrained funding landscape.
Our Panel
Nick Samios, Director, Hermes Capital
Chris Slack, Director, The Finance Consultancy
Daniella Mancuso, Director, Salt Partners
Martie Tziotis, Director, Turnaround & Restructuring Strategy, EY
What Does “Half-Bankable” Really Mean?
A recurring theme throughout the discussion was the ambiguity of the term “half-bankable”. In practice, these are businesses with sound underlying fundamentals that are weighed down by factors such as legacy debt from previous downturns, non-standard asset profiles, or gaps in traditional credit metrics.
They often have viable business models and strong future prospects, but fall short of conventional banking criteria. In today’s environment, this grey zone is expanding, catching more businesses and brokers in the gap between bank appetite and commercial reality.
The Role of Brokers and Financial Advisors
The panel emphasised that brokers and advisors play a critical role in bridging this gap. As highlighted by Chris Slack, brokers are no longer just deal facilitators. They are strategic advisors who must deeply understand a client’s financial position, pressures, and objectives.
This means engaging early, asking better questions, and building strong relationships with lenders across both bank and non-bank markets. For half-bankable clients, the broker’s ability to frame the story clearly and credibly can make the difference between stagnation and progress.
Leveraging Alternative Solutions
Alternative finance, particularly private credit, featured heavily in the discussion. With private credit markets now exceeding $200 billion globally, these solutions are no longer niche. They offer flexibility where traditional banks cannot, especially for businesses with complexity or transitional risk.
The panel stressed that alternative funding should not be treated as a last resort. Instead, it should be considered as part of a broader strategy, aligned with the client’s long-term goals rather than just solving an immediate cash flow issue.
Building Trust Through Communication
Transparency and communication emerged as essential ingredients for success. Clear dialogue between brokers, clients, and funders helps manage expectations, avoid wasted effort, and ensure that funding strategies are sustainable.
Half-bankable situations rarely improve through silence or delay. Addressing issues early and openly allows advisors to design solutions that stand up under scrutiny and support long-term business stability.
Final Thoughts
Supporting half-bankable clients requires brokers and advisors to think beyond traditional lending frameworks. By strengthening advisory relationships, leveraging alternative funding options, and maintaining disciplined communication, professionals can navigate this grey zone effectively.
As this discussion highlighted, half-bankable clients are no longer the exception. They are becoming the norm, and brokers who adapt their approach will be best positioned to deliver outcomes when others walk away.
Watch the full recording to learn more.
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