Check If Your Private Loan Deal Qualifies

What Happens After You Submit?

We Review the Scenario

Our team reviews the purpose of funds, requested loan amount, security property, estimated value, existing debt, loan position, indicative LVR, required timeframe and proposed exit strategy.

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We Identify Whether There Is a Funding Pathway

If the transaction appears workable, we will explain what additional information may be required. Depending on the scenario, this could include identification, current loan statements, council rates notices, a contract of sale, valuation, development documents or evidence supporting the exit strategy.

Innovate Funding may assess the transaction against its own private capital or through its network of private and non-bank lenders, depending on the structure and requirements of the deal.

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Indicative Terms May Be Provided

Where a potential funding pathway is identified, indicative terms may be issued setting out the proposed:

• Loan amount

• Loan term

• Interest rate

• Establishment and other fees

• Property security

• Loan position

• Key conditions

Indicative terms are not an approval or binding offer. All funding remains subject to satisfactory assessment, valuation, due diligence, legal review, lender approval and final documentation. Learn more about our approach on the Why Innovate Funding page.

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What Types of Private Loans Can Be Assessed?

You do not need to know exactly which private lending product is appropriate before submitting the scenario. We can review the structure and identify the most suitable potential pathway.

First Mortgage Loans

A first mortgage loan gives the proposed lender the primary registered mortgage position over the security property.

First mortgage finance may be considered for property purchases, refinancing, business working capital, commercial transactions, urgent settlements and other qualifying business or investment purposes.

 

Second Mortgage Loans

A second mortgage loan may allow a borrower to access available property equity without immediately refinancing an existing first mortgage.

The assessment will generally consider the existing first mortgage, available equity, combined LVR, first mortgagee requirements, property marketability and proposed exit strategy.

 

Bridging Finance

Bridging finance can be used to address a temporary funding gap between two transactions or financial events.

Common scenarios include urgent property settlements, refinancing an expiring facility, completing a transaction before sale proceeds are received and covering a short-term gap before longer-term funding becomes available.

 

Equity Release for Business Purposes

An equity release loan may allow a property owner to raise funds for working capital, business expansion, stock purchases, tax debt, property investment or another qualifying commercial purpose.

The amount available depends on the property value, existing secured debt, proposed loan position, location and acceptable LVR.

 

Construction and Development Funding

Construction loans may be available for development, renovation, subdivision, project completion and other construction-related purposes.

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These scenarios may require additional information such as development approvals, building contracts, project feasibility, construction costs, sponsor experience, quantity surveyor reports and completed project values.

 

What Makes a Strong Private Loan Scenario?

A private loan scenario is generally stronger when it has sufficient property security, a clearly defined business or investment purpose and a credible way to repay the loan.

Important factors include:

• A clearly identified security property

• A realistic current property value

• A reasonable loan-to-value ratio

• A defined and legitimate use of funds

• A loan term that matches the purpose

• A clear and achievable exit strategy

• A realistic funding timeframe

• Consistent information supporting the proposed transaction

• Willingness to complete the required valuation, legal and due diligence process

Each scenario is assessed individually. A transaction that does not fit one lender may still be suitable for another lender with different loan-size, location, security or risk requirements.

 

Why Are Security and LVR Important?

Private loans are commonly secured by registered mortgages over real property. The lender will consider the property’s type, condition, location, marketability and assessed value.

The loan-to-value ratio, or LVR, compares the total debt secured against the property with its assessed value.

For example, total secured debt of $600,000 against a property valued at $1,000,000 represents an LVR of 60%.

Acceptable LVRs vary according to:

• First or second mortgage position

• Residential, commercial, industrial, rural or vacant land security

• Metropolitan or regional location

• Property marketability

• Requested loan term

• Purpose of funds

• Proposed exit strategy

• Overall transaction risk

Read more about Innovate Funding’s approach to private lending LVR requirements.

 

What Is an Exit Strategy?

An exit strategy is the realistic way the private loan will be repaid at or before the end of its agreed term.

Common private loan exit strategies include:

• Sale of the security property

• Sale of another property or asset

• Refinance to a bank

• Refinance to a non-bank lender

• Completion and sale of a development

• Receipt of identified business proceeds

• Repayment from contracted receivables or another documented liquidity event

A credible exit strategy should explain what will happen, when it is expected to happen and why the proposed repayment pathway is achievable.

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An exit based on a property sale should address the expected sale timeframe, anticipated sale price and whether the property is already listed. An exit based on refinancing should explain what needs to occur before the borrower can qualify for longer-term finance.

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Brokers and Professional Advisers

Finance brokers, accountants, solicitors, buyers’ agents and other professional advisers can submit client scenarios directly through the Deal Qualifier.

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Select the appropriate role in the form and provide the borrower’s entity details, requested loan amount, purpose of funds, security property, existing debt and proposed exit strategy.

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You remain involved throughout the assessment and will be kept informed as the transaction progresses.

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Who Can Use the Deal Qualifier?

The Deal Qualifier is designed for:

• Australian business owners

• Property investors

• Property developers

• Commercial property owners

• Self-employed borrowers

• Finance brokers

• Accountants

• Solicitors

• Buyers’ agents

• Professional advisers and referrers

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Qualifying business and investment purposes may include:

• Business working capital

• Commercial or investment property purchases

• Refinancing existing business debt

• Refinancing an existing private loan

• ATO debt and creditor payments

• Business acquisitions

• Stock or equipment purchases

• Property development

• Construction or project completion

• Renovation of an investment property

• Urgent settlements

• Time-sensitive commercial opportunities

• Equity release for business expansion

Innovate Funding assesses property-backed business and investment loans. We do not provide loans for personal, domestic or household purposes.

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If the proposed loan is primarily for consumer purposes, a different lending and regulatory pathway may be required.

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Frequently Asked Questions

What Information Is Needed for a Private Loan Assessment?

An initial private loan assessment generally requires the loan amount, purpose of funds, security property, estimated value, existing secured debt, proposed loan position, requested term, required funding date and exit strategy. Complete and consistent information allows the transaction to be reviewed more efficiently.

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Does Submitting the Deal Qualifier Guarantee Approval?

No. The Deal Qualifier provides an initial assessment only. Submitting a scenario does not constitute an application, approval, binding offer or commitment to provide finance. All proposed loans remain subject to valuation, due diligence, legal review, lender criteria, satisfactory documentation and final approval.

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Can I Submit a Scenario if My Bank Has Declined It?

Yes. A bank decline does not automatically prevent a private or non-bank lender from considering the transaction. Private lenders may assess the security property, available equity, loan purpose and exit strategy differently from a mainstream bank. The scenario must still have sufficient security, a legitimate purpose and a credible repayment pathway.

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Can I Obtain a Private Loan Without Complete Financial Statements?

Some private lending scenarios can be considered using reduced financial documentation. The exact information required will depend on the borrower, loan purpose, property security, requested structure and proposed exit.

Low-documentation lending does not mean that no assessment or supporting information is required.

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Can Residential Property Secure a Business Loan?

Yes. Residential property may be accepted as security for a legitimate business or investment loan.

The assessment will consider the property value, location, existing debt, loan position, LVR and exit strategy. Using residential property as security does not convert a consumer-purpose loan into a business-purpose loan.

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Can Commercial Property Be Used as Security?

Yes. Commercial, industrial and certain specialised properties may be considered. Acceptable leverage and pricing can differ from standard residential security because commercial properties have different valuation, leasing, marketability and sale-time considerations.

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Can I Apply for a Second Mortgage Without Refinancing My Bank?

Potentially. A second mortgage may allow a borrower to raise additional funds while retaining the existing first mortgage. Approval will depend on the available equity, combined LVR, first mortgagee requirements, property security, loan purpose and exit strategy.

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How Quickly Will My Scenario Be Reviewed?

Complete scenarios can generally be reviewed faster than enquiries missing important loan, security or exit-strategy information. The actual timeframe depends on the complexity of the transaction, valuation requirements, lender criteria and how quickly the borrower and professional advisers provide any requested information.

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Can a Finance Broker Submit a Client Scenario?

Yes. Finance brokers and other professional advisers can submit scenarios on behalf of clients and remain involved throughout the assessment. The Deal Qualifier allows the submitting party to identify their role and provide the essential borrower, loan, security and exit information.

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Ready to Check Your Deal?

Submit the essential details and let Innovate Funding assess whether a private lending solution may be available.