Private Lending Wantirna VIC: $121,000 Working Capital Loan Settled in One Week

Private lending continues to play an important role for Australian businesses that require fast access to capital outside traditional bank timeframes. This is particularly true for small business owners who need working capital quickly and cannot wait weeks for bank approvals.

This case study outlines a private lending Wantirna VIC transaction where $121,000 was provided for business working capital, settling within one week on a 12 month term.

This article is educational and is intended to explain how private lending can be used in real-world scenarios.

Deal Overview

Location: Wantirna VIC 3152

Loan amount: $121,000

Loan purpose: Business working capital

Loan term: 12 months

Settlement timeframe: Within one week

The borrower required fast access to funds to support ongoing business operations. Traditional bank finance was not suitable due to timing constraints.

The Borrower’s Challenge

The borrower operated an established business but required immediate working capital to manage operational expenses and maintain cash flow.

While the business was viable, the borrower faced challenges common in many small business scenarios:

• urgent funding timeline

• need for certainty of settlement

• requirement for short term finance rather than long term debt

Traditional lenders were unable to meet the required timeframe, making private lending a more appropriate solution.

Why Private Lending Was Used

Private lending was selected because it allowed the loan to be assessed primarily on:

• property security

• available equity

• a clear exit strategy

Rather than relying on lengthy serviceability assessments, the lender focused on the underlying asset position and the borrower’s plan to repay the loan within the agreed term.

For broader context, see our overview of private lending in Australia.

How the Loan Was Structured

The loan was structured as a short term private facility with a defined 12 month term. This structure aligned with the borrower’s working capital needs while maintaining flexibility.

Key elements of the structure included:

• short term duration

• clear purpose tied to business operations

• defined exit strategy

This approach ensured the funding met the borrower’s immediate needs without creating unnecessary long term debt.

Speed of Settlement

One of the defining features of this transaction was the speed at which the loan settled.

From initial assessment to settlement, the loan completed within one week. This timeframe would not have been achievable through traditional bank channels.

Speed is one of the key reasons borrowers turn to private lending, particularly when timing directly impacts business continuity.

Working Capital and Private Lending

Working capital is one of the most common uses of private lending for small businesses.

Private lending can be appropriate where:

• cash flow timing is critical

• opportunities or obligations cannot wait for bank approval

• the funding need is short to medium term

This deal in Wantirna VIC demonstrates how private lending can be used as a practical tool rather than a last resort.

For similar funding structures, see our guide to private lending for business in Australia.

Risk Management and Loan to Value Ratio

As with all private lending transactions, loan to value ratio played a key role in assessing risk.

The lender considered:

• property value

• existing debt

• overall equity position

Conservative LVRs help protect both the borrower and the lender by reducing downside risk. You can read more about this concept in our explanation of loan to value ratios in private lending.

Exit Strategy

A clear exit strategy was established at the outset of the loan.

Common exit strategies for working capital loans include:

• refinance to a traditional lender

• repayment from ongoing business cash flow

• sale of an asset if required

Having a defined exit is a fundamental requirement in private lending and was a key factor in this loan’s approval.

Why This Deal Matters for Local Businesses

This private lending Wantirna VIC transaction highlights how private lending supports local businesses that fall outside traditional lending frameworks.

Many suburban businesses face similar challenges:

• urgent funding needs

• short term capital requirements

• difficulty fitting bank lending models

Private lending provides an alternative pathway that focuses on practicality and execution.

Frequently Asked Questions About Private Lending in Wantirna VIC

Can private lending be used for business working capital?

Yes. Working capital is one of the most common uses of private lending, particularly where timing is critical.

How fast can private loans settle?

Settlement timeframes vary, but many private loans can settle within days if documentation and security are in order.

Is private lending legal in Australia?

Yes. Private lending operates within Australian lending and property law frameworks.

Are private loans short term?

Most private loans are structured as short to medium term facilities.