Home - Services - Private Lenders Loans
At Formation Finance, we help property developers, investors and business owners across Australia access Private Lenders Loans when banks are too slow or simply do not fit the situation.
We work with a broad network of funds, family offices, private investors and specialist non-bank lenders so that your loan is structured around the strength of the asset and the project, not only a textbook credit score.
| Short Term Property Loans | No Doc Loans | Second Mortgage Loans | |
|---|---|---|---|
| LVR (up to) | 75% | 75% | 75% |
| Loan Term | 3-24 months | 12-24 months | 3-24 months |
| Rates (from) | 7.95% p.a. | 7.95% p.a. | 15.00% p.a. |
When a deal is time-critical or the borrower doesn’t fit standard bank policy, private lenders loans solve a different problem to bank finance. Here’s how the two compare in practice.
| Private Lenders Loans | Bank Finance | |
|---|---|---|
| What’s assessed | Security value, project merit and exit strategy | Serviceability, income documentation and credit score |
| Typical time to funding | 3–10 business days | 6–12 weeks |
| Income documentation | Generally not required | 2 years’ tax returns, financials, BAS |
| Credit impairment | Considered — defaults, judgements and tax debts can often be worked with | Usually declined outright |
| Loan term | 3–24 months | 5–30 years |
| Cost | Higher — priced for speed and flexibility | Lower |
| Repayment structure | Interest only, often prepaid or capitalised | Principal and interest |
| Best suited to | Site acquisitions, settlement deadlines, equity release, bridging, working capital | Long-term hold and owner-occupied lending |
Private lenders loans are not a cheaper alternative to a bank — they’re a faster and more flexible one. The right question is not “which is cheaper” but “what does the delay cost me”. A developer who loses a site because bank approval took nine weeks has paid far more than the margin on a short-term facility.
We start by understanding your objective, timeline, security property, existing debt position, and exit strategy. This helps us quickly determine whether private lenders loans are the right fit and what type of lender profile is most suitable.
We then assess which funding route best suits the scenario, whether that is a first mortgage, second mortgage, short-term bridging facility, refinance solution, or development-related private capital structure.
Once the scenario is reviewed, we provide indicative feedback on likely terms, including loan structure, pricing approach, term length, key conditions, and what documentation will be needed to move forward.
The lender will complete its due diligence, which may include review of the security property, current debt position, borrower entity, valuation, title, exit strategy, and transaction purpose.
Once the lender is satisfied with the file and conditions are met, the loan can move to formal approval and settlement. For many borrowers, this is where private lenders loans provide a practical advantage over slower bank processes.
Private lending is generally designed around a clear exit. Depending on the scenario, repayment may come from property sale, refinance to another lender, project completion, or release of funds from another transaction.
Private lenders loans are secured lending. The strength of the security and the clarity of your exit matter more than your income.
Commonly accepted:
Generally not accepted:
If you’re not sure whether your security fits, send us the address and the numbers — we’ll tell you quickly either way.
Loans are backed by houses, shops, or factories, and can help with many short-term cash needs, like endless working cash flow.
Loans offer a simplified and faster alternative for those who don’t fit the traditional lending criteria.
A private lenders loan is a type of funding offered by non-bank financiers such as credit funds, family offices, and private investors. Unlike traditional banks, these lenders focus on asset value and borrower potential, not just income or credit score. It’s commonly used for short-term, urgent, or non-standard lending needs.
Approval can happen within 24 to 72 hours depending on the complexity of your case and how fast you can provide required documents. In some cases, funding may be released immediately after approval, especially for asset-backed loans like short term property loans or development loans.
Not necessarily. Private lenders are more focused on the value of your security (e.g. property) and the strength of your exit strategy than your credit score. We regularly help clients with defaults, tax debts, or non-conforming income.
You can apply through our online enquiry form, call us directly, or email us with details about your loan needs and property security. We’ll guide you through the next steps and provide fast feedback.
