Private and Non-Bank Commercial Lenders
Commercial finance solutions for scenarios that fall outside mainstream bank policy. We assess complex or non-standard commercial lending requirements and identify appropriate non-bank and private credit providers.
When might private or non-bank lending apply?
Private and non-bank lenders operate with different credit policies to mainstream banks and can assess applications that banks are unable to approve. Common scenarios include borrowers with adverse credit history, complex income structures, specialised security properties, time-sensitive transactions requiring faster approval, development projects, and borrowers who need a short-term solution while rebuilding their position for mainstream finance.
Private lending is not a general alternative to mainstream finance — it is typically more expensive and carries different terms and conditions. It is appropriate in specific circumstances where no mainstream solution is available and the cost is justified by the commercial outcome.
Common scenarios for non-bank commercial lending
- Complex income structures or entity arrangements that mainstream lenders decline
- Adverse credit history or prior insolvency where mainstream appetite is limited
- Specialised security properties (caravan parks, service stations, rural holdings)
- Short-term bridging requirements where timing is critical
- Development projects where mainstream development lenders are fully committed
- Borrowers transitioning from adverse credit to mainstream eligibility
How private lenders differ from banks
Private and non-bank lenders assess applications with greater flexibility around income documentation, security type and borrower profile. Their credit decisions are more discretionary and less policy-driven than bank automation. However, this flexibility comes at a cost — private commercial lending typically involves higher interest rates, higher establishment fees, shorter loan terms, and the requirement for a clear exit strategy.
Not all non-bank lenders are the same. The market includes regulated non-bank lenders (who hold or operate under an ACL), private credit funds, and individual private investors. The suitability of each depends on the specific scenario, loan amount and security type.
Typical documentation and assessment
Private lenders generally require less documentation than banks for their initial assessment but still require evidence of the asset, the borrower's overall position and a credible exit strategy. A detailed explanation of the borrower's circumstances and the purpose and intended repayment of the loan is important. We prepare your case clearly to maximise the likelihood of a positive assessment.
Responsible use of private lending
Private lending should be approached with a clear plan and realistic expectations. We discuss the full cost of any private solution, including all fees and interest, and the exit strategy before recommending this path. Private lending that extends without a clear exit can compound financial difficulty rather than resolve it.
Frequently Asked Questions
Can I get commercial finance if I have a poor credit history?
Some private and non-bank lenders will consider borrowers with adverse credit history, subject to the strength of the security property and a credible explanation of past credit events. The availability and cost of finance depends on the severity of the adverse history and current overall position. This is assessed case by case.
How do private commercial lenders price their loans?
Private commercial loan pricing reflects the additional risk accepted by the lender. Rates, fees and terms are negotiated individually and are generally higher than mainstream commercial products. Total cost of credit (not just interest rate) should always be compared when evaluating private lending options.
How quickly can private commercial finance be arranged?
Private lenders can often move faster than banks once an initial assessment is complete. Speed depends on the lender, the complexity of the scenario and how readily documentation can be provided. We discuss realistic timelines based on your specific situation.
What is an exit strategy and why does it matter?
An exit strategy is the plan for how the private loan will be repaid — typically through sale of the security property, refinance to mainstream finance, or receipt of funds from another source. Private lenders require a credible, defined exit because the loan is designed to be short-term. A weak or undefined exit is a common reason for private lenders declining an application.
Are private lenders regulated in Australia?
Regulation varies. Some non-bank lenders hold an Australian Credit Licence (ACL) or operate under one as a credit representative. Others operate as private credit funds investing in mortgages. The regulatory framework that applies depends on the lender structure and loan type. We work with lenders who operate within appropriate regulatory frameworks.
Is private lending suitable for long-term commercial finance needs?
Private lending is generally not suitable as a long-term solution due to its cost and typical short-term structures. It is most appropriate as a bridge to a mainstream solution or to resolve a specific time-sensitive issue. Where long-term private finance is the only option, we discuss the full implications with you.
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General information only — not personal financial or credit advice. All finance subject to lender assessment and approval. Private lending involves higher costs and different risks than mainstream finance. Michael Short, Credit Representative 468493 under ACL 389328.