Non-bank lender positioning facility as cost-effective commercial finance alternative
Pallas Capital has increased its SME funding capacity with the launch of a new $380 funding line.
Backed by an unspecified Big Four bank, Pallas Funding Trust No. 6 (PFT6) is targeting SME borrowers needing pre-development loans, residual stock loans and investment property loans, with ticket sizes starting at $500,000 and going up to $7.5 million.
Pallas is positioning the facility as a competitively priced option for SMEs. It adds to Pallas’ shelf of warehouse facilities funded by the likes of Goldman Sachs, Judo Bank and Morgan Stanley, plus a Westpac-backed warehouse facility in New Zealand.
Dan Gallen (pictured right), chief investment officer of Pallas Capital, said: “We are delighted to announce our collaboration with one of Australia’s big four banks.
“This new facility will provide borrowers our lowest cost of funds to date. PFT6 demonstrates the continued demand by major financial institutions to partner with experienced investment managers to deploy capital in an increasingly competitive funding environment.”
Jason Arnold (pictured left), Pallas Capital’s head of origination, added: “This new facility strengthens our ability to offer more choice, more control and faster outcomes for commercial borrowers.
“It supports our continued growth trajectory into 2026 and beyond, and further empowers our broker network, who account for the majority of our deal flow, to deliver highly competitively priced solutions for their clients.
“In a crowded lending environment, we’re proud to provide the certainty, flexibility and market-leading pricing that our borrowers and brokers are seeking.”
Fiscal year to date, Pallas Capital has completed $2.7 billion in transactions and has lent over NZ$1 billion across the Tasman.
