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.
Disclosure: This article is general information only. It does not take your objectives, financial situation or needs into account and it is not financial, legal or tax advice. Nick Lim is an FBAA accredited finance broker. All figures and scenarios shown are illustrative, and actual outcomes depend on individual circumstances, lender policy and market conditions at the time of application. Speak to a qualified finance broker before making a funding decision, and to your own solicitor or accountant on anything contractual or tax related.