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Innovate Funding - FAQs
Private lending in Australia can involve different loan structures, approval timeframes, and lending criteria compared to traditional bank finance.
This FAQ page answers the most common questions borrowers ask about private lending, loan-to-value ratios, settlement timeframes, and how Innovate Funding structures property-secured loans across Australia.
About Innovate Funding
What does Innovate Funding do?
Innovate Funding is an Australian private lending specialist that arranges short-term property-secured loans for borrowers who require fast approvals, flexible lending criteria, or solutions outside traditional bank policy. To find out more about us and our loan requirements.
Who typically uses Innovate Funding?
Our clients commonly include property investors, developers, business owners, and borrowers who require short-term capital secured against real estate.
Is Innovate Funding a lender?
Innovate Funding works with a panel of private lenders across Australia to structure funding solutions tailored to each borrower scenario.
Innovate Funding LVR
What LVR do private lenders offer?
Most private lenders in Australia lend between 65% and 75% Loan-to-Value Ratio (LVR) depending on the property type, location, and exit strategy.
Can I get a second mortgage?
Yes. Many borrowers access additional capital through a second mortgage secured behind an existing first mortgage.
Settlement Times and Approvals
How fast can a private loan settle?
Private loans can settle significantly faster than traditional bank loans. In many cases, funding can occur within 3 to 10 business days depending on the complexity of the transaction.
What documents are required for a private loan?
Private lenders typically assess:
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Property security
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Loan purpose
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Exit strategy
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Valuation
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Borrower background
Why Innovate Funding
Why choose Innovate Funding instead of going directly to a lender?
Innovate Funding works with a wide network of private lenders across Australia, allowing us to structure competitive funding solutions tailored to each scenario.
Benefits include:
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Access to multiple lenders
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Structured loan solutions
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Faster approvals
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Flexible lending criteria
What types of loans does Innovate Funding arrange?
Innovate Funding structures a range of private lending solutions including:
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First Mortgage Loans
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Second Mortgage Loans
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Bridging Loans
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Construction Loans
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Development Finance
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Secured Business Loans
Frequently asked questions
Private Lending in AustraliaLoan TypesHow the process worksFirst Mortgage LoansSecond MortgagesBridging LoansBad Credit Business LoansHome Equity Business LoanConstruction & Development Loans
What is private lending, and how does it differ from traditional bank loans?
Private lending is a form of asset-backed finance where loans are provided by non-bank lenders rather than traditional banks. Instead of relying heavily on income verification and strict lending policies, private lenders focus primarily on the value of the property used as security, the loan-to-value ratio (LVR), and the borrower’s exit strategy.
This approach allows loans to be structured much faster than traditional bank finance. Many borrowers use private lending in Australia (/private-lending-australia)when they require short-term capital for property transactions, development projects, or business opportunities that require flexible funding.
Private lending can be structured through different loan types, including first mortgage loans,(/first-mortgage) second mortgage loans,(/second-mortgage) and bridging loans,(/bridging-loan) depending on the borrower’s scenario and the level of security available.
Can I get a private loan if a bank has declined my application?
Yes. Many borrowers who are declined by traditional banks can still access funding through private lending.
Banks often decline loan applications due to strict servicing requirements, complex financial structures, or documentation issues. Private lenders instead focus on the property security and the borrower’s exit strategy, which allows more flexibility when structuring a loan.
Borrowers who have been declined by banks often explore options such as bad credit business loans (/bad-credit-business-loans)or property-secured funding through secured business loans,(/secured-business-loan) where the value of the real estate is the primary factor in the lending decision.
This approach allows borrowers to access capital for opportunities such as property purchases, development funding, or short-term business finance.
How fast can a private loan be approved and settled?
One of the biggest advantages of private lending is the speed at which loans can be structured and funded.
Traditional bank loans often take weeks or months to approve due to strict policies and extensive documentation requirements. In contrast, private lenders focus primarily on the property security and the exit strategy, which allows funding decisions to be made much faster.
In many cases, private loans can receive indicative approval within 24–48 hours, with settlement occurring within days once valuation and legal documentation are completed.
Borrowers who require fast access to capital often use bridging loans (/bridging-loan)or short term business loans (/short-term-business-loans)when timing is critical.
What loan-to-value ratio (LVR) do private lenders offer?
Private lenders typically provide loans between 65% and 75% loan-to-value ratio (LVR), depending on the property type, location, loan purpose, and borrower’s exit strategy.
The LVR represents the percentage of the property’s value that can be borrowed. For example, if a property is valued at $1,000,000, a lender offering a 70% LVR may provide funding up to $700,000.
Higher LVR structures may sometimes be possible depending on the transaction and the strength of the security.
Property-secured lending structures commonly include first mortgage loans (/first-mortgage)and second mortgage loans.(/second-mortgage)
Are there risks involved with private lending?
Like any financial product, private lending involves risks that borrowers should understand before proceeding. Private loans are typically short-term facilities with higher interest rates than traditional bank loans, reflecting the speed and flexibility of the funding structure.
Borrowers should ensure they have a clear exit strategy, such as refinancing with a traditional lender, selling the property, or completing a development project.
Understanding how private lending in Australia (/private-lending-australia)works can help borrowers structure funding appropriately, particularly when using specialist lending products such as construction loans.(/construction-loan)
Can private lending be used to release equity from property?
Yes. Many borrowers use private lending to release equity from property when they need access to capital quickly or when traditional lenders are unable to assist.
Equity release allows borrowers to unlock funds from the value of their property without selling the asset. This capital can then be used for a variety of purposes such as business funding, property investment, renovations, or debt restructuring.
Private lenders often structure equity access through second mortgage loans (/second-mortgage)or specialised equity release loans,(/equity-release-loans) depending on the existing debt secured against the property and the borrower’s exit strategy.
Can private lending be used for property development?
Yes. Private lenders frequently fund property development projects when traditional banks are unable to provide funding due to policy restrictions, timelines, or project complexity.
Private lending can assist with land acquisition, construction funding, or bridging finance while a development is completed and refinanced with a traditional lender.
Depending on the project structure and security available, funding may be provided through construction loans (/construction-loan)or land development loans,(/land-development-loans) which are specifically designed for property development scenarios.
Can self-employed borrowers qualify for private loans?
Yes. Self-employed borrowers often use private lending because traditional banks require extensive financial documentation that may not accurately reflect the strength of a business.
Private lenders focus more heavily on the property security and the borrower’s exit strategy rather than relying solely on income verification or tax returns.
This allows self-employed borrowers to access property-secured funding solutions such as secured business loans (/secured-business-loan)or short-term facilities like short term business loans (/short-term-business-loans)when capital is required quickly.
Are private lenders regulated in Australia?
Yes. Private lending in Australia operates within a regulated legal framework. Lending transactions are typically documented by solicitors and secured by registered mortgages over property titles.
Depending on the loan purpose, private loans may fall under different regulatory requirements. Loans used for personal or consumer purposes may fall under the National Consumer Credit Protection Act (NCCP), while business-purpose loans may be structured outside of consumer lending regulations.
Understanding how private lending in Australia (/private-lending-australia)works can help borrowers determine whether a private loan structure is appropriate for their scenario.
When should someone consider private lending instead of a bank?
Borrowers typically consider private lending when traditional banks are unable to provide funding due to timing constraints, complex financial structures, or strict lending policies.
Private lending is often used in scenarios such as:
• Purchasing property before selling another asset
• Funding development projects
• Resolving urgent financial obligations
• Accessing equity quickly
Depending on the borrower’s needs, funding may be structured through brigding loans (/bridging-loan), second mortgage loans,(/second-mortgage) or other forms of property-secured lending.(/no-doc-loans)
Private lending provides flexibility and speed, which can be critical when opportunities arise that require fast access to capital.
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