Commercial & Business Private Lending in Australia

Private lending for commercial and business purposes provides fast, flexible finance solutions when traditional banks can’t meet your needs. Whether you need funding for commercial property, business expansion, working capital, or debt restructuring, private lenders offer tailored loans with quicker approvals and flexible terms.

Topics Covered

What is Commercial & Business Private Lending? — An overview of private finance solutions for commercial borrowers and businesses.
Types of Commercial & Business Loans — Including commercial property loans, business capital loans, bridging finance, mezzanine finance, and more.
Who Benefits From Private Lending? — Typical businesses and commercial borrowers that use private lending.
Loan Features & Terms — Interest rates, loan sizes, terms, and security specifics.
Lending Scenarios & Examples — Real-life examples showcasing private commercial and business loans.
Benefits & Risks — Key advantages and considerations of private commercial lending.
Frequently Asked Questions (FAQs) — Answers to common commercial lending questions.

What is Commercial & Business Private Lending?

Commercial and business private lending involves loans from non-bank lenders that specialise in providing finance for commercial property purchases, development projects, business working capital, and debt refinancing. These lenders prioritise asset security and cash flow potential over rigid credit policies, enabling faster, more flexible lending solutions.

Types of Commercial & Business Loans

Commercial Property Loans: Finance to purchase, refinance, or develop commercial real estate such as offices, warehouses, retail centres, and industrial properties.
Business Capital Loans: Loans designed to support working capital needs, tax debts, equipment purchases, or business expansion.
Bridging Finance: Short-term loans to bridge funding gaps for property purchases or business transactions.
Development & Construction Loans: Funding for construction or refurbishment of commercial projects.
Mezzanine Finance: Subordinated debt that supplements senior loans for larger projects or expansions.
Caveat Loans: Quick finance secured via caveat over commercial properties.
Receivership & Distressed Asset Finance: Funding to restructure or support businesses in financial distress or turnaround.
Trade Finance: Loans to assist businesses with purchasing inventory, raw materials, or goods for resale.

Who Benefits From Commercial & Business Private Lending?

Private lending is suited for:

Property developers and investors purchasing or developing commercial properties.
Businesses requiring fast access to working capital or cash flow relief.
Companies undergoing restructuring or facing short-term financial challenges.
Businesses with complex financial profiles or imperfect credit history.
Commercial borrowers needing fast settlement or flexible terms beyond bank policies.

Loan Features & Terms

Loan Size: From $100,000 to $50 million and above, depending on the project and security.
Loan Terms: Typically 3 to 36 months, with some flexibility for extensions.
Interest Rates: Generally between 7% and 18%, reflecting risk and loan structure.
Security: Registered mortgages over commercial property or business assets.
Repayment Options: Interest can be paid monthly, rolled up, or prepaid, depending on borrower needs.
Documentation: Varies from full financials to low or no documentation loans.
Approval Speed: Often within 24 to 72 hours, enabling quick access to funds.

Lending Scenarios & Examples

Scenario 1: Commercial Property Purchase

Situation: James wanted to purchase an industrial warehouse in Sydney but banks declined his loan due to his short trading history.

Private Lending Solution: A private lender approved a $1.5 million commercial loan secured against the warehouse at 11% interest with a 12-month term.

Outcome: James settled quickly, leased the warehouse, and refinanced with a bank after 10 months.

Scenario 2: Business Working Capital Loan

Situation: A Melbourne-based manufacturing company faced delayed payments and needed $300,000 to cover payroll and supplier costs.

Private Lending Solution: A short-term loan at 14%, secured by company assets, was approved within 48 hours.

Outcome: The business met all obligations without disruption and repaid the loan in full within six months.

Scenario 3: Bridging Finance for Commercial Sale

Situation: Olivia needed to buy a commercial retail space before selling her existing property.

Private Lending Solution: A 6-month bridging loan at 9.5% was secured against both properties, providing fast settlement.

Outcome: Olivia completed the purchase without missing her opportunity and repaid the loan after selling the old property.

Benefits & Risks

Benefits

Fast approvals and settlements
Flexible terms tailored to commercial and business needs
Access for borrowers with complex financials or imperfect credit
Custom loan structures for development, bridging, or working capital

Risks

Higher interest rates compared to traditional bank loans
Shorter loan durations requiring clear exit strategies
Risk of asset loss if repayments are not maintained
Potentially higher fees and costs due to speed and flexibility

Get Started With Commercial & Business Private Lending

If you require fast, flexible finance for your commercial property or business needs, contact us today. Our expert team can help you explore tailored private lending options to suit your situation and timeframe.

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Private Lending Questions:

Q. What is private lending?

Private lending are niche loan products that serves very specific purposes for those that cannot be satisfied by normal lending channels. This includes borrowers that cannot get loans with any of the banks, low credit or

Q. Are private money lenders interest rate higher?

Generally, yes for the following reasons:

Risk - private lenders take on clients with higher the risk profiles than traditional lenders.
Flexibility - They are able to offer more flexible terms and than traditional lenders
Speed - private lending can approve finance as quick as 1 hour as compared to traditional lenders with can take up to 6 to 8 weeks.

Q. Who is private lending for?

Private lending is for the following type of scenarios -

Fast processing times for those that need finance quickly and cannot wait for traditional lenders. Most applications take 2 to 3 business days to acquire funding
Those that are "asset-rich, cash-poor"
Business owners who require short term funds
Low credit score individuals that cannot take out a traditional loan.
Self-employed or newly established businesses that cannot show 2 years income.
Developers who form a new, special purpose company to work on specific project
Immediate funding to "bridge" a shortfall.

Q. What are the pros and cons of private lending?

Pros

Easy access and fast turnaround - less paperwork, less headache.
No background/credit check - private money lenders only care about the security property and your exit strategy.
Flexible terms - generally, private lenders are more flexible when it comes to security type and serviceability requirements.

Cons.

Origination cost - establishment fee of 2-5% of loan amount on top of interest rate is not uncommon, add more (brokerage) if the loan is introduced by a specialist.
Interest rates - there is rate for risk. Generally private lenders are expecting a return of 9-15%pa, some even expect 20%
Short term loans - unlike banks that allow you to pay back in 30 years, most private lenders expect you to pay the loan back in 6-12 months, some of the more lenient ones will allow a couple of years.

Q. What type of security is needed?

Security options include:

Property / rural / residential & commercial
Vehicles, plant and equipment
Shares and jewellery
Specialised security
Variety of cross collateralised security options

Q. How long does it take to get funding?

Turnaround time for private money lenders is generally a lot quicker than traditional lenders. Some lenders can release funding in as little as 24 hours, while most can in 2-3 weeks. It all depends on the complexity of the deal, size, location (accessibility to valuers), etc.

Q. How do I qualify for private finance?

Most private lending services will only lend on business purposes (non-coded / non-NCCP regulated loans). Business purposes can mean purchasing commercial property, cashing out to assist with cash flow of the business, or purchasing properties under company structures. The funds can't be for personal use, e.g. purchasing a residential property for owner occupation. You will be required to sign a declaration that the fund is to be used for business purposes.

Security (property location, value, LVR)
Purpose (e.g., refinance, purchase, construction)
Exit strategy (refinance, sale, business cash flow)

You will also be required to sign a declaration confirming business use of funds.

Need Fast, Flexible Private Finance?

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