Can I use residential property to raise business capital?

Yes. Private lenders regularly accept residential property as security for business-purpose loans. As long as the loan purpose is genuinely for business or investment (not personal consumer use), the loan is regulated as a commercial facility regardless of the property type used as security.

What if my business has bad credit history?

Private lenders assess the deal primarily on the property security and exit strategy. Business credit history is considered but isn't the deciding factor. A strong property position (low LVR, metropolitan location) with a credible exit strategy can overcome a poor credit profile.

How quickly can I access the funds?

Depending on the loan structure: caveat loans can settle in 24–72 hours, while standard first or second mortgages typically take 5–14 business days from a complete application. Having your documents ready before you approach a broker is the single most effective way to accelerate the process.

Do I need to tell my bank I'm taking a second mortgage?

It depends on your bank's mortgage terms. Some bank mortgages include a negative pledge clause that requires the borrower to notify the bank or obtain consent before registering a second mortgage. Your broker and solicitor will review your bank's mortgage documents and advise whether consent is needed. In practice, most banks provide consent within 3–5 business days.

How Non-Bank Lending Helps Businesses Raise Capital Using Property

Oct 16, 2024
1 min read

Updated: Apr 15

For businesses that need capital fast but don't qualify for traditional bank finance, non-bank lending secured against property offers a practical alternative. It bridges the gap between those who can get bank loans (and wait 8-12 weeks) and those who can't get them at all.

How Non-Bank Lending Helps Businesses Raise Capital Using Property

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