Private lending is commercial, business-purpose capital from non-bank and private lenders, secured against property or other assets and structured around the deal rather than a rigid bank credit box. Developers and investors use it when speed, leverage or a complex story matters more than the cheapest headline rate.
A bank assesses against a standardised scorecard and a published credit policy. A private lender assesses the specific deal: the asset, the security position, the borrower's track record and a credible exit. That means a private lender can often consider higher gearing, a shorter timeline or a non-standard story that a bank policy would decline, in exchange for pricing that reflects the added risk.
Private lending suits a sound, asset-backed deal that falls outside bank appetite on policy, timing or leverage. It is a commercial product for developers, builders and investors, not consumer credit.
Pricing and terms depend on the lender, the security and the risk. The main drivers are the loan to value ratio (LVR) against the security, the strength and timing of the exit, the term, the ranking of the security (first or second) and the quality of the asset and the sponsor. We do not quote a standard rate because there is not one: a clean, low-geared deal with a clear exit prices very differently to a stretched, second-ranking position. As a guide only, expect pricing to sit above bank funding and to track the risk of the specific structure.
Mainstream bank debt is usually the cheapest capital when a deal fits policy. Private lending is the alternative when it does not, or when the value of moving quickly and preserving equity outweighs a lower rate. The two are not rivals so much as different tools: many developers use bank debt where it fits and private capital where it does not.
The cheapest rate is rarely the best outcome on its own. We weigh the cost of capital against return on equity, time, risk and the relationships that let you do the next deal, then take the structure to a network of non-bank and private lenders. The aim is capital that is scalable and repeatable, not just slightly cheaper this once.
No. The private lending we arrange is commercial and business-purpose only. It is not consumer credit and is not for owner-occupied home loans or personal borrowing.
Usually a registered first or second mortgage over property, and in some short-term cases a caveat. The security position is a key driver of both appetite and pricing.
Often faster than a bank because the credit decision sits closer to the deal. Actual timing depends on valuation, legals and the security, so it is best discussed against your specific timeline.
Generally yes, because it carries more risk and more flexibility. The relevant question is whether the structure improves your return on equity and lets your capital do more, not the rate in isolation.
Tell us about the project, the numbers, and the timeline. We will give you an honest read on whether we can fund it and what a suitable structure could look like. Email loans@bottomlinefinance.com.au or send the form.
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