Can I Refinance a Commercial Property Held in a Trust to Access Working Capital?

Struggling to get approved by the banks? You're not alone.

We recently funded a $950,000 first mortgage on a $2.5 million commercial property in metro Adelaide, held in a discretionary trust. The borrower needed to refinance an existing facility and release working capital to grow their business fast. The banks said no. We said yes.

This real-life deal shows how private lending can unlock the equity in your commercial property even when it's held in a trust, or when your structure doesn’t suit the banks.

Let’s dive into how it worked and why this type of finance is becoming more popular in South Australia and across the country.

Why Private Lending?

Private lending is ideal for:

• Business owners needing fast capital

• Properties held in trust or company structures

• Situations where banks won’t approve cash-out loans

• Borrowers with non-traditional income or active restructures

Unlike the banks, private lenders focus on:

• The property’s value

• The loan-to-value ratio (LVR)

• The exit strategy

• Your purpose and plan

Deal Summary: Refinance + Working Capital

Detail	Information
Location	Metro Adelaide, South Australia
Property Type	Commercial warehouse + office (1,800sqm)
Ownership	Discretionary Trust (with corporate trustee)
Valuation	$2.5 million (independent val)
Loan Amount	$950,000
LVR	38%
Loan Term	12 months (interest prepaid)
Interest Rate	10.25% p.a. + standard lender fees
Loan Purpose	Refinance $650K loan + $300K cash-out
Exit Strategy	Refinance to bank or second-tier lender

Key Objective: Refinance an existing loan and access $300K in cash for working capital, without delays.

The Challenge: Bank Declined Due to Structure

Even with a strong commercial asset and a low LVR, the banks wouldn't fund the deal. Why?

• The property was held in a trust

• The borrower was in the middle of a corporate restructure

• The loan included a cash-out component — which many lenders avoid

This is where private lending provided a solution.

The Solution: Refinance a Commercial Property Held in a Trust

We assessed the deal based on:

• Strong asset location (metro Adelaide)

• Low risk (38% LVR)

• Clear purpose (refinance and reinvest in operations)

• Achievable exit (refinance in 12 months)

We structured the loan:

• To the corporate trustee

• Secured by a first mortgage

• With prepaid interest (no monthly repayments)

• No early repayment penalty

Result: The borrower secured the funding quickly, avoided default on their previous facility, and reinvested in their business with confidence.

Why This Deal Worked

Trust Structure Accepted

We worked with the borrower’s legal and financial team to ensure all trust documents were in order. No unnecessary barriers, no excuses.

Fast Turnaround

• Approved in 48 hours

• Settled in just 8 business days

Speed is critical when deadlines are tight.

Cash-Out for Business Growth

$300K was released as working capital — used to fund staffing, equipment upgrades, and initial payments for a new commercial site.

Low Risk, High Confidence

At just 38% LVR, this deal had ample equity buffer, which protected both the borrower and the lender.

When Should You Consider Private Lending?

Private lending is a smart option when:

• Your property is held in a trust or company

• You need fast finance for a business opportunity

• Banks say no due to structure or cash-out

• You’re facing a facility expiry or urgent refinance

• You want to leverage equity without selling

Refinance a Commercial Property Held in a Trust

Refinancing a commercial property held in a trust can be an effective way to unlock equity, consolidate debts, or secure more competitive terms. While the property is legally owned by the trust, lenders will still assess the financial position of the trust, its beneficiaries, and often the guarantors behind it. Private lenders, such as Innovate Funding, offer flexible refinancing options that focus on the asset and the exit strategy rather than restrictive serviceability requirements. This allows business owners and investors to restructure existing loans, release working capital, or fund new opportunities without the delays typically associated with traditional banks.

Refinance a Commercial Property Held in a Trust is generally not regulated by the National Consumer Credit Protection (NCCP) Act, as the loan is for business or investment purposes rather than personal, household, or domestic use. Because the security is held in a trust and the loan is written in the name of an entity, lenders treat the transaction as a commercial or business loan. This means borrowers are not bound by the same consumer lending requirements that banks must follow, such as proving income or meeting strict serviceability ratios. Instead, private lenders like Innovate Funding focus on the asset’s value, the trust structure, and the proposed exit strategy, which allows for a far more streamlined process. This flexibility makes refinancing through a private lender an attractive solution for trustees or beneficiaries who need quick access to capital, debt restructuring, or improved loan terms without being restricted by consumer lending regulations.

FAQs: Private Lending for Trust-Owned Property

Can I refinance a commercial property in a trust?

Yes. Many private lenders, including Innovate Funding, fund properties held in trusts, as long as there’s equity and a clear exit strategy.

Can I access working capital through private lending?

Absolutely. If you have equity in your commercial property, private lenders can provide cash-out facilities often within 1 to 2 weeks.

What interest rates apply?

Rates vary depending on the deal. This client secured a 10.25% p.a. rate plus fees. Most private loans range from 8% to 12% p.a. depending on risk and terms.

Final Thoughts: Flexible Finance That Works

This deal shows what’s possible when you combine:

• A strong asset

• A smart structure

• And a lender who can move fast

Private lending isn’t just a fallback. It’s a strategic tool to help you:

• Refinance quickly

• Unlock working capital

• Grow your business

And when trusts, timing or banks get in the way, we step in.

Ready to Unlock Equity in Your Commercial Property?

If you’ve got a commercial property held in a trust, or need fast working capital, let’s talk. We’ll assess your deal fast and get you moving.

Call us or Enquire online today. We fund where banks hesitate.