Quick answer
Private business lending is funding from non-bank lenders who use their own or investors' capital, usually secured by property. It is often chosen for speed and flexibility: no valuation, decisions within the hour, interest prepaid or added and terms that bend when a sale or refinance runs late. Loans run from $20k to $5m.
Key points
- Non-bank funding, usually secured by property
- $20k to $5m, with no valuation needed
- Chosen for speed, flexibility and case-by-case decisions
- Best with a clear exit, such as a sale or refinance
Private lending fills the space between what banks will do and what businesses actually need. A bank works to a policy built for the average borrower and a timetable built around committees. A private lender looks at the specific deal, the specific property and the specific exit, and can decide in the time it takes to read them.
When private lending makes sense
- Speed: a deadline that a bank cannot meet, such as a settlement, tax deadline or acquisition.
- Complexity: income that is strong but hard to document in a way a bank’s system accepts.
- Credit history: defaults, arrears or past insolvency that rule out mainstream lenders.
- Timing: a short-term need where a full bank loan would be overkill.
How it works
Private business loans are usually secured by residential or commercial property, as a first mortgage, second mortgage or caveat. Amounts run from $20k to $5m. No valuation is needed, which removes one of the slowest steps. Interest can be prepaid or added to the loan, terms are flexible, and you can keep the loan as long as you need it, which matters when a bank refinance or sale is delayed.
Ready to move? Check your options in 60 seconds. Nothing is sent to a list of lenders.
The exit is everything
Private lending is designed to be a bridge, not a destination. The best outcomes come when the exit is clear from day one:
| Exit | What it looks like |
|---|---|
| Bank refinance | A bank will lend once the issue is resolved: lodgements caught up, a default cleared, a year of trading completed |
| Property sale | The security property, or another one, is being sold |
| Business event | A contract completes, a large debtor pays, an asset is sold |
If you do not have an exit, tell us. Sometimes the right answer is a longer facility or a different structure, and an honest conversation now saves pain later. Our guide to refinancing a fast loan later explains how to plan the move back to a bank.
Reading the terms
Before you sign any private loan, understand: the total cost including every fee, whether interest is prepaid or added and how that affects the payout figure, what happens if the term needs extending, any early repayment terms and what default looks like. If anything is unclear, ask, and get independent advice where it helps.
A worked example (illustrative)
A builder’s bank declines a short-term facility because the most recent tax return is late, even though trading is strong. A materials supplier needs $310,000 paid within days to keep supplying a major job. The builder offers an investment property as security, is approved within the hour for a private loan with interest added, and pays the supplier the next day. Once the tax return is lodged, the builder refinances to the bank.
What to have ready
Lenders usually ask for the following. Having them ready can save a full day:
- Property details and any existing mortgage
- Your exit plan with supporting documents
- ID for all owners and guarantors
- Purpose and amount
- Bank statements if trading will help repay
What holds things up
These are the things that most often turn a same-day answer into a three-day one:
- No identifiable exit
- Several owners or entities involved
- Last-minute changes to the amount
- Unexplained issues that surface in searches
Get the form right, get funded faster
The enquiry takes about 60 seconds, and those 60 seconds decide how smoothly everything after it goes. Accurate figures for revenue and the amount, a straight answer about credit history and a clear yes or no on property mean the assessor can move straight to the decision. Guesswork means rework, and rework is the enemy of a 24-hour turnaround.
Before you go
- Non-bank funding, usually secured by property
- $20k to $5m, with no valuation needed
- Chosen for speed, flexibility and case-by-case decisions
- Best with a clear exit, such as a sale or refinance
Why this can move in hours, not weeks
The clock starts when you submit the enquiry. In business hours a real person usually picks it up within minutes, checks the amount and purpose and asks for what is needed. For unsecured funding that is mostly bank statements. For property-secured funding it is the property details, with no valuation required. From there, approval can be given in as little as 15 minutes and is commonly given within the hour. E-signing and payment follow, and funds within 24 hours is a realistic target when everything is ready.
Ready to start the clock?
Nobody can promise approval, but we can promise a fast, honest look. There is no credit check when you enquire, we do not farm your details out, and a person rather than a bot reads what you send. Answer the questions accurately and you give yourself the best shot at a quick yes. Start here.
Frequently asked questions
Is private lending safe?
Reputable private lenders operate with proper documentation and clear terms. Always read the loan agreement, understand the total cost and get advice if anything is unclear.
Why would I use a private lender instead of a bank?
Usually for speed, flexibility or because the bank has said no. Private lenders can decide quickly and look past issues a bank's policy would not.
Is private lending more expensive than a bank?
Typically it costs more than a standard bank loan, which is why it is usually used for shorter periods with a clear exit.
Can a private loan be refinanced to a bank later?
Yes. Many businesses use private lending as a bridge, then refinance once the issue that ruled out the bank is resolved.
Start the clock right here
The same 60-second enquiry, on this page. No credit check to enquire, and a real person picks it up fast.