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Your Essential Guide to Private Lending in Australia
Private lending is finance provided outside traditional banks. Innovate Funding assesses eligible business-purpose loans secured against residential or commercial property, including first mortgages, second mortgages and business bridging finance.
We directly fund selected suitable mortgages and arrange other facilities through private and non-bank lending partners. Read how we fund and arrange loans.
Choose the right funding guide
First mortgage loans: finance an eligible business purchase, refinance or equity release with a lender in first registered position.
Second mortgage loans: assess additional business funding behind an existing mortgage, including combined LVR and first-lender requirements.
Business bridging finance: cover a defined business funding gap pending a supported sale, refinance or business receipt. Consumer bridging is a separate service arranged through specialist lenders.
Short-term business loans and secured business loans: compare property-backed funding for working capital, stock, equipment or business debt refinance.
Bad-credit business loans: understand how credit issues, existing debts, security and repayment evidence are assessed.
Construction finance and development finance: specialist partner-arranged facilities assessed on project feasibility, equity, costs, drawdowns and repayment. They are not automatically available at every project stage.
Private lending questions answered
What is private lending?
Private lending is finance provided outside traditional banks. Innovate Funding focuses on eligible business-purpose loans secured by property, directly funds selected mortgages and arranges other facilities through lending partners. How private lending works.
How do first and second mortgages differ?
A first mortgage holds the first registered mortgage position. A second mortgage sits behind an existing first mortgage and may release business funds while that first loan stays in place, subject to assessment. Compare second mortgage requirements.
Can I apply if I have arrears or bad credit?
You can submit a scenario for review. Explain the cause of arrears or defaults, current debts, available security, business purpose and repayment evidence. Available equity or a bank decline does not guarantee approval. Business loans with adverse credit.
Can the funds pay business tax debt or operating expenses?
Eligible uses may include verified business tax debt, wages, suppliers, stock or equipment. Provide the amount needed, supporting evidence and a realistic repayment source. Personal expenditure is assessed separately from business borrowing. Property-secured business uses.
Can I borrow while selling a property?
A business bridging facility may cover an eligible commercial funding gap pending a supported sale, refinance or business receipt. Homeowners buying before selling should use the separate consumer bridging service arranged through specialist lenders. Consumer bridging enquiries.
Can finance cover renovations or construction?
Business-purpose works need a clear budget, eligible borrower, acceptable security and supported repayment plan. Progressive construction and development facilities are generally arranged through specialist lending partners and require additional project due diligence. Construction finance assessment.
How quickly can a private loan settle?
Indicative terms can generally be provided within 24–48 hours after sufficient information is received. They are not formal approval. Settlement depends on assessment, valuation where required, legal documents and satisfaction of funding conditions. Approval and settlement stages.
What documents should I prepare?
Start with the borrower and ABN, business purpose, net amount required, security address and estimated value, existing debt, deadline and repayment evidence. Identity, entity, financial, valuation and legal documents may also be required. Reduced-documentation requirements.
Does no doc mean there are no checks?
No. Reduced-documentation assessment does not remove identity, business-purpose, property, debt, credit or repayment checks. A lender may request further evidence, including a purpose declaration or accountant confirmation where appropriate. What no-doc lending means.
What is conditional approval?
Conditional approval remains subject to the conditions specified by the lender. These may include valuation, further information, legal review or existing-lender requirements. It is not confirmation that funds are available for settlement. Understand lending conditions.
What LVR can I borrow to, and does it include fees?
The indicative ceiling depends on the security location and property type. A first mortgage is assessed on gross exposure; a second mortgage includes existing secured debt and the new facility, allowing for funded interest and fees. LVR limits and net funds.
What is peak debt?
Peak debt is the highest projected loan exposure over the facility period. Funded interest, fees and later advances can increase it. A construction lender also assesses the draw schedule, remaining costs and required borrower contribution. Project funding and leverage.
What is an exit strategy?
An exit strategy explains how and when the full debt will be repaid. A proposed sale, refinance or business receipt needs supporting evidence and must cover the expected payout and costs. A future refinance is not guaranteed. Planning short-term repayment.
How should I compare private loan costs?
Compare written offers for the same net funds and planned repayment date. Include interest, its calculation basis, establishment and brokerage where applicable, legal and valuation costs, ongoing charges, minimum interest and discharge provisions. Rates, fees and total cost.
Find guidance for your property and industry
Use our state and city lending guides to check the location of your security. Start with Sydney, Melbourne, Brisbane or Perth. The LVR guide explains indicative ceilings; regional and specialised security is assessed individually.
Our industry finance guides explain property-secured business scenarios for different sectors. Equipment, fit-out or stock expenditure still requires acceptable property security; we do not offer unsecured business loans.
Prepare your funding enquiry
Use the Loan Qualifier to send the net funds needed, business purpose, borrower, security address and estimated value, existing debt, required date and proposed repayment source. Offering property or holding an ABN alone does not establish eligibility. If loan obligations are not met, the security property may be at risk.
Selected private lending guides
Explore the selected guides below, or browse the latest articles and funded deals in the feed.
Broker & Adviser Strategy
No Doc & SME Business Lending
Second Mortgage & Equity Release
Bridging & Short-Term Finance
Construction & Development Finance
Non-Bank & Private Lending Education
Location-Specific Private Lending
