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Private Lending FAQs in Australia
Innovate Funding arranges property-secured business-purpose loans across Australia from $50,000. We work with private and non-bank lending partners and directly fund selected suitable transactions.
Find answers about eligibility, first and second mortgages, bridging finance, accessing property equity for business use, and eligible construction and development funding. Our FAQs explain loan-to-value ratios (LVRs), documentation, fees, interest, settlement and repayment.
Eligibility depends on the borrower structure, actual use of funds, property security and a credible repayment plan. Personal home purchases and personal or household expenses fall outside this service.
Browse the categories below or explore our private lending services to understand the available funding options.
Frequently asked questions
Private Lending in AustraliaLoan TypesHow the process worksFirst Mortgage LoansSecond MortgagesBridging LoansBad Credit Business LoansHome Equity Business LoanConstruction & Development Loans
What does Innovate Funding do?
Innovate Funding arranges property-secured business-purpose finance across Australia from $50,000. We work with private and non-bank lending partners and directly fund selected suitable transactions. We assess the business purpose, security, existing debt and proposed repayment plan to identify a suitable funding structure. Explore our private lending services.
Who typically uses Innovate Funding?
Our service is for business owners and other eligible business-purpose borrowers, including suitable developer and company scenarios. Applicants need acceptable property security and a credible exit. Eligibility depends on the actual use of funds and borrower structure; being an investor or owning property does not automatically qualify a personal or residential investment loan.
Is Innovate Funding a lender or a broker?
Innovate Funding arranges loans through private and non-bank lending partners and directly funds selected suitable transactions. We explain which arrangement applies, who the lender is and the relevant costs and conditions before you commit. Every transaction remains subject to assessment, acceptable security, documentation and approval.
What is private lending, and how does it differ from traditional bank loans?
Private lending is finance provided by private or non-bank lenders rather than a traditional bank. Innovate Funding arranges business-purpose loans secured against eligible property through lending partners and directly funds selected suitable transactions.Assessment considers the business purpose, property value, existing debt, borrower circumstances and repayment plan. Some lenders can consider scenarios outside bank policy, but property equity alone does not guarantee approval.Depending on the scenario, funding may be structured as a first mortgage loan, second mortgage loan or business bridging loan. The appropriate structure depends on the funding need, existing lending arrangements and proposed exit.
What is the minimum and maximum loan amount?
Innovate Funding’s minimum loan amount is $50,000. The maximum depends on the lender, property security and transaction. Tell us both the gross facility required and the net funds you need after fees, funded interest and existing-debt payouts. Available property equity is one part of the assessment, and does not by itself determine approval or the cash available.
Can I use an Innovate Funding loan for personal expenses or buying my own home?
Innovate Funding’s service is for eligible business-purpose borrowing. Personal or household expenses and personal home-purchase finance are outside this service. We assess the actual use of funds, borrower structure and supporting evidence. Having an ABN, borrowing through a business or offering your home as security does not automatically make the purpose eligible.
Can I get a private loan if a bank has declined my application?
A bank decline does not automatically rule out a private business loan. A private lender may assess the scenario differently, but we still need to understand the reason for the decline, existing debts, available property equity and repayment plan. Approval depends on the complete transaction; a bank decline is not evidence that private funding will be available.If adverse credit contributed to the decline, explore our bad-credit business loan options.
How fast can a private loan be approved and settled?
For suitable scenarios, Innovate Funding can generally provide indicative terms within 24-48 hours of receiving sufficient information. Indicative terms are not formal approval. Settlement follows lender assessment, valuation where required, legal documentation and satisfaction of funding conditions. Tell us your deadline early so we can assess whether it is realistic.
What LVR does Innovate Funding offer?
Indicative gross LVR ceilings for eligible metropolitan security range from 50% to 70% for residential property and 45% to 60% for commercial property. The security address and property type determine the applicable limit.The ceiling applies to the gross first mortgage or total existing and proposed secured exposure for a second mortgage, including funded interest and fees. Lower limits may apply after assessment. See our LVR limits by state and territory for the property address.
Are there risks involved with private lending?
Yes. A short-term loan must be repaid within the agreed term, and a delayed sale, refinance or customer payment can disrupt the exit. Interest, fees and default costs can increase the payout. If the loan is not repaid, the property offered as security may be at risk. Compare the full cost and obtain independent advice before committing.
Can private lending be used to release equity from property?
Yes, where the released funds will be used for an eligible business purpose. Funding may involve refinancing a first mortgage or arranging a second mortgage behind it. Available borrowing depends on the lender’s accepted property value, existing secured exposure, lending limits and funded costs. The difference between market value and debt is not automatically available as cash. Explore property equity funding for business purposes.
Can self-employed borrowers qualify for private loans?
Yes, self-employed applicants may be considered for eligible business-purpose funding. Documentation depends on the lender and transaction. Alternatives to full financial statements may be accepted, but evidence of the business purpose, property security, existing debts and repayment plan is still required. Being self-employed does not remove the need for assessment. See how reduced-documentation business lending is assessed.
Are private lenders regulated in Australia?
The rules depend on the borrower, loan purpose and transaction structure. Consumer credit legislation can apply to personal and household borrowing and certain residential investment loans. Innovate Funding’s service is limited to eligible business-purpose lending. A private lender is not exempt from all legal obligations, and describing a loan as “business” does not determine its legal treatment.
Discuss your business funding scenario
Tell us how much funding you need, what the funds will be used for, the property available as security, existing secured debts, your required timeframe and how you expect to repay the loan.
Use the enquiry form below, complete our funding scenario form, or call 02 8919 3639 for an initial review.
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