How Fast Can Private Loans Be Approved in Australia?

Speed is everything in commercial finance. In Australia’s high-pressure business and property markets, finance delays can mean missed opportunities or failed settlements.

Traditional banks can take weeks. Sometimes even longer.

Many business owners and property investors ask the same question: how fast can private loans be approved in Australia? In most cases, approval happens far quicker than with traditional banks because private lenders focus on the value of the asset and the exit strategy, not rigid lending policies. With the right documentation and clear security, borrowers can often receive loan approval within 24 to 48 hours, making private lending a practical solution for time-sensitive commercial opportunities.

Private lenders, on the other hand, can approve a loan in 24 to 48 hours, with settlement in as little as 3 to 7 business days.

In this blog, we break down:

• How fast private loans are approved

• What affects approval speed

• How to avoid delays

• Why private lending moves faster than banks

Private Loan Turnaround Times: How fast can private loans be approved in Australia

Loan Type	Approval Time	Settlement Time
Secured Business Loan	24–48 hours	3–5 business days
Bridging Loan	2–3 business days	5–7 business days
Second Mortgage	2–4 business days	5–7 business days
Development Loan (Initial Stage)	3–5 business days	Over 14 business days

With documentation ready and security clear, private lenders can move quickly. The fastest deals are typically small to mid-size loans with clear property security and a defined exit strategy.

For more background, read our related blog: What is a No Doc Loan and How Does It Work in Australia?

Why Private Loans Are Approved Faster Than Bank Loans

Private lenders operate differently from banks. They are not weighed down by regulatory red tape or rigid credit policies.

Private Lending	Traditional Bank Lending
Approval in 24–72 hours	Approval in 3–6+ weeks
Based on asset value and strategy	Based on income, credit score, serviceability
Minimal documentation	Heavy documentation and processing
Direct decision-makers	Multiple approval layers

This approach results in faster decisions and faster settlements.

What Impacts Loan Approval Speed?

To move quickly, private lenders need clarity, documentation, and confidence in the deal. These are the four main factors:

1. Documentation Readiness

Key documents should be ready to go. These include:

• Photo ID

• Current mortgage statement

• Council rates notice

• Company or trust documents (if applicable)

• Clear funding purpose and exit stratergy

2. Security Property

Clean title, no encumbrances, and sufficient equity are essential for fast approval. Complicated title structures or ownership disputes can cause delays.

3. Exit Strategy

Private lenders want to understand how the loan will be repaid. A clear exit such as a property sale, refinance or business cash flow significantly speeds up the process.

4. Working with the Right Broker

An experienced broker can package and present the loan properly from the start. At Innovate Funding, we streamline this process through a network of pre-qualified lenders who are ready to move quickly.

Common Delays to Watch Out For

Even with the speed of private lending, delays can happen. Common causes include:

• Missing or incorrect documents

• Title issues or unresolved legal complications

• Valuation delays

• Poor communication between borrower, solicitor or broker

• An unclear or unrealistic exit strategy

• Clients not stating all information

To avoid these issues, stay organised and respond quickly. Many deals stall due to simple communication delays or avoidable paperwork gaps.

When Are Fast Private Loans Used?

Private loans are ideal when timing is critical. Common use cases include:

• Short-settlement property purchases

• Bridging finance between deals

• Urgent debt consolidation, including ATO debts

• Refinancing of expiring or defaulted loans

• Business capital to manage short-term cash flow

If the deal can’t wait, private lending offers a reliable solution.

Real-World Example: Fast Loan in Action

Scenario: A client required $210,000 to settle a commercial property purchase within five days after their bank withdrew approval at the last minute.

What we did:

• Day 1: Full application submitted

• Day 2: Conditional approval issued

• Day 3: Title search and valuation conducted

• Day 4: Legal documents sent and signed

• Day 5: Funds settled

Private lending enabled a successful outcome that would not have been possible through a traditional lender.

Summary: Fast Private Loans in Australia

Private loans can be approved in 24 to 48 hours, with settlement in 3 to 7 business days depending on the complexity of the deal and how well prepared the borrower is.

They offer a fast, flexible and outcome-driven funding option for borrowers who need certainty and speed.

Key Takeaways

• Private lenders approve loans much faster than banks

• Fastest approvals happen in 24–48 hours

• Settlement often completed within a week

• Clear documentation and exit strategy are essential

• Working with the right broker makes a big difference