When it comes to private lending, we mean business. Our brokers are the private eyes on the case to locate lenders for your next project.
Whether you’re a company director looking for a no-doc loan to see you through to relaunch, or an asset-rich individual wanting to renovate your property to sell for a significant profit, we can connect you with non-bank options that see past policy proscriptions to recognise your true value.
Being less bogged down in bureacracy and drawn-out due diligence, the underwriting process for private finance is generally quicker than with conventional bank borrowing.
Business (and life) isn’t one-size-fits-all; finance needn’t be either. Private lenders are more lenient on lending criteria, accounting for non-regular revenue, alternative asset classes, and offering a range of niche facilities like mezzanine and caveat loans.
While the banks want you on the hook for the full 30, private finance products are typically shorter term, enabling you to drive dynamic deals or get over unexpected hurdles on the path to success.
In the private finance game it’s as much who you know as what you know. Luckily for you, we combine access to a leading network of Australian and international non-bank lenders with expertise on how to structure deals for your business.
You’ll get approvals with head-spinning speed. It’s a result of our brokers’ intimate knowledge of the optimum debt structuring for your particular purpose, combined with quick assessments of likely sources of funding to approach on your behalf.
The last thing you want is a broker trying to tie you to them before they’ve shown you the goods. We don’t ask you to sign (or pay) anything, until we’ve first presented you with a viable source of funding.
If you’ve already tried the banks and second tier lenders, maybe it’s time to see if a private lender option is right for you. Chat to one of our non-bank finance experts today to find out more.
Most banks consider residential construction projects too risky. The majority of loans for property developers come from private sources, funding everything from land acquisition and construction, to soft costs like marketing and consulting fees. Their shorter terms and flexible approach to securitisation deliver the dynamic outcomes demanded by the industry.
Private lending helps business owners seeking quick funds for expansion, purchasing essential equipment or inventory, or just looking ot ride out a rough patch. SMEs can benefit from private finance’s flexible loan terms, scope for asset-based lending (potentially secured against collateral like commercial real estate, equipment, even unpaid invoices), and faster approval times.
Businesses and even individuals with various sources of debt can sometimes reduce the overall interest burden and streamline their repayments by consolidating multiple loans into one via private finance. Benefits of refinancing this way compared to with a bank include more flexible collateral options, acceptance of smaller loan amounts, and less stringent covenants on a business’s operation.
Essentially, the term private lending (or private finance) describes the practice of wealthy individuals or companies loaning out excess cash reserves for business ventures like property developments. Private lenders are often sought out because they tend to have a higher risk appetite and are less bound by regulations compared to the big banks and second-tier lenders (e.g. Virgin Money). Because they take on projects and borrowers deemed risky or irregular by conventional creditors, they generally charge a higher interest rate.
Federal law in Australia states that any lender providing loans to consumers (e.g. home loans) must have a credit licence from ASIC. However, lenders that only provide commercial loans don’t need to be licenced.
Accordingly, many private lenders will only deal with businesses, with most requiring borrowers to sign a declaration stating the funds will be used for business purposes. This way, they are exempt from a lot of the red tape and regular reporting requirements that apply to institutions like banks, who primarily deal with domestic consumers.
By focussing solely on servicing the finance needs of Australian businesses, private lenders can offer fast and flexible funding not available via conventional means. At Northcap, we’ve cultivated relationships with reputable private lenders, so you can be confident in your creditor’s integrity.
Although every situation is different, a privately sourced loan will usually attract a higher interest rate compared to a relevant alternative from a bank. However, since no relevant alternative exists in many cases, this is a bit of a moot point.
We partner with business owners to find financial solutions that keep the wheels in motion. Call, email, or send an enquiry to open the channels of communication.
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