Private Lending
Private Lending is finance provided by non-bank lenders — typically private funders, family offices, or specialist lending firms — secured against real property. It is used when a borrower needs speed, flexibility, or a structure that mainstream banks cannot accommodate. Private lending is common in short-term bridging, business rescue, development top-ups, and scenarios involving non-standard income or credit history.
Why It Matters
Private lending fills the gap between what a bank will approve and what a business or property investor actually needs. Deals that involve urgent settlement timelines, complex company structures, arrears, or non-standard income documentation often require a private solution. It's a core part of Australia's specialist lending market and sits alongside products like Caveat Loans, Second Mortgages, and Commercial Bridging Finance.
How It Works
- A private lender assesses the deal primarily on security value (property) and exit strategy, rather than traditional income verification.
- Terms are typically 1–24 months with capitalised interest or monthly servicing.
- Funds can settle in days — far faster than bank timelines.
- The borrower exits via refinance to a mainstream lender, property sale, or another funding event.
Common Use Cases
- Urgent property settlements where bank approval is too slow
- Business owners with defaults or arrears who need short-term funding
- Equity gap funding in property development
- Bridging finance between purchase and refinance
- Paying out ATO debts, including Director Penalty Notices
Related Switchboard Resources
- Private Lending — Service Page
- Second Mortgage Business Loans
- Commercial Bridging Finance
- Exit Strategy
- Forced Sale Value
- LVR
For regulatory guidance on credit activities, visit asic.gov.au.