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How to Secure a Commercial Private Loan in Australia: 5 Simple Steps
- Innovate Funding
- Sep 21, 2023
- 3 min read
Updated: 3 days ago
Securing fast and flexible funding isn’t always possible through major banks, especially when your project is time-sensitive or doesn’t fit traditional lending criteria. For Australian businesses, investors, and developers, private lending solutions offer fast approvals, asset-backed lending, and tailored finance options.
At Innovate Funding, we connect borrowers to trusted non-bank lenders across Australia. Here’s a breakdown of the five key steps involved in securing a commercial private loan.
Step 1: Submit a Tailored Private Lending Enquiry
We begin by gathering key information about your scenario to match you with the right lender. This includes LVR, security address, borrowing purpose, and exit strategy.
Many borrowers use private lending for:
Fast refinance
ATO and tax debt
Working capital and acquisitions
Development or construction
If you're unsure which structure suits your needs, start with our Commercial Loans or Short Term Business Loans pages for guidance.
Step 2: Compare Lending Scenarios Across Private Lenders
Once we assess the scenario, we provide tailored options across our panel of Australian private lenders.
These may include:
Second Mortgages for equity-release or debt consolidation
Development Loans for construction projects
Bridging Loans for short-term settlement gaps
Our priority is finding a structure that balances speed, cost, and flexibility—especially when time is critical.
Step 3: Valuation to Confirm Security Position
To progress to final approval, lenders typically require a valuation to confirm property value and maximum LVR.
Depending on the lender and urgency, this may be a full sworn report or a desktop valuation.
This applies whether the loan relates to:
Business-purpose Home Equity Loans
Cash-out for expansion
Refinancing existing debt
Accurate valuation ensures the security position matches the proposed loan structure.
Step 4: Private Lender Due Diligence & Legal Review
Once the valuation is completed, lenders conduct due diligence to confirm commercial purpose and risk profile—not consumer use.
This includes reviewing title, loan docs, valuations, and entity information (company, trust, or corporate trustee).
If funding relates to property development, we will structure the deal through our Private Lending Australia network to ensure quick turnaround and aligned lender policies.
Step 5: Settlement and Fast Fund Disbursement
After documents are signed and settlement is booked, funds are disbursed—often faster than major Australian banks.
Funds may be released:
At settlement in full
In drawdowns (for construction)
Directly to creditors (e.g., tax office, refinance payouts)
With Innovate Funding coordinating lender, valuation, and legal teams, the process is handled end-to-end, enabling faster execution and greater transparency.
Private Lending Across Australia
Our private lending solutions apply nationally, including:
Adding geographic pages significantly improves crawlability and location-based rankings.
Speak to Innovate Funding
If you're looking for fast, flexible funding backed by property, our team will structure your scenario and present suitable private lending options.
Book your private lending assessment today.
FAQs: Commercial Private Loans in Australia
What is a commercial private loan in Australia?
A commercial private loan in Australia is a property-secured loan funded by a private lender rather than a bank. These loans are commonly used for business purposes, refinancing, development funding, working capital, and time-sensitive settlements.
How fast can I get a commercial private loan?
Private lenders can often settle loans faster than banks—sometimes in as little as 24–72 hours, depending on title searches, valuations, and legal turnaround times.
What security do I need for a commercial private loan in Australia?
Most private lenders require real property as security. This can include residential, commercial, industrial, land, or mixed-use property. Higher LVRs may apply when the asset is income-producing.
Do private lenders require full financials?
Not always. Many loans can be arranged as low-doc or no-doc, depending on purpose and risk. Commercial intent must be verified to remain NCCP-exempt.
What interest rates apply to private commercial loans?
Rates vary based on risk, LVR, title position, and term length. Short-term commercial private loans typically range from 8% to 18% p.a., depending on structure and urgency.
