Private lending
Short-term, property-secured finance for time-sensitive deals and scenarios that sit outside bank policy.
Common uses
Bridging finance
Buy before you sell or settle while longer-term finance is arranged.
Time-sensitive settlements
Finance arranged for tight settlement dates and deadlines.
Outside bank policy
Credit issues, complex income or unusual security.
Caveat and second mortgages
Short-term funding against existing equity.
How private lenders assess a deal
Private lenders focus on the property and the exit more than bank-style serviceability. That is why they can work to shorter timeframes and why the exit matters.
The security property
Value, location and how quickly it could be sold drive the maximum loan. Most private lenders lend up to around 75% of value.
The exit strategy
How the loan will be repaid, such as from a sale or a refinance to another lender, is the most important question.
Term
Most private loans run for 3 to 24 months. Longer terms are possible but cost more.
Purpose
Private loans are almost always for business purposes. Loans for personal use are rare.
Costs
Expect interest plus application or establishment fees, risk fees, valuation fees and legal costs. Costs are higher than for bank loans and interest is often prepaid or capitalised.
Speed
Approval and settlement can take days instead of weeks when the security and the exit are clear.
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Fix these first
These are the issues that most often slow an application down, and what to do about each one.
- No documented exit
Have evidence of the exit ready, such as a sale contract, a refinance pre-approval or expected business income.
- Unrealistic timeframes
Private loans still need a valuation and legal documents so allow at least a few days before your deadline.
- Not comparing the total cost
Compare interest, fees and legal costs together, not just the monthly rate.
- A term that is too short
Choose a term that leaves room if the exit takes longer than planned.
- Using private finance long term
Plan to move to a lower-cost loan as soon as your situation allows.
What is private lending?
Loans from private credit funds or non-bank lenders, usually secured by property and used short-term.
Is private lending more expensive?
Generally, yes. It suits situations where speed or flexibility matters more than rate, with a clear exit plan.
What is an exit strategy?
How the loan will be repaid, such as selling a property or refinancing to another lender. Lenders will want this to be clear.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.