Private Lending

This refers to lending by private individuals, investors, or organizations to borrowers, bypassing traditional banking institutions. It is an alternative financing option that offers borrowers access to funds outside of the conventional banking system.

Loan types include:

Caveat loans
Construction loans
Refinance (1^st and 2^nd mortgage)
Second mortgage
Tax debt
Urgent property settlement
Financial separation
Bridging
Investment opportunity
Business start-up
Working capital

Security and servicing can be asset based only. This will include the whole spectrum of property types – Rural, Residential, commercial, industrial, retail and specialised.

Loan terms are typically between 3 to 24 months.

In terms of rates and fees, private funding in Australia typically comes with higher interest rates compared to traditional lenders. Private lenders often assume a higher level of risk by providing loans to borrowers who may have credit challenges or limited financial history. Therefore, they may charge higher interest rates to compensate for this increased risk.

Private lenders may also have more flexible fee structures compared to traditional lenders. While traditional lenders may charge application fees, ongoing account fees, or early repayment fees, private lenders may have a more customized approach to fees based on the specific terms of the lending arrangement. Borrowers should carefully review and negotiate the terms, rates, and fees with private lenders to ensure they understand the cost implications and make informed decisions.

It’s important to note that the rates and fees associated with private funding can vary significantly depending on the lender, borrower’s risk profile, loan amount, and other factors. Borrowers should thoroughly assess and compare different private funding options to find the most suitable and cost-effective solution for their specific needs.