Unlocking Growth with Low-Leverage Private Credit in Australia

Private credit is fast becoming one of Australia’s most powerful financial tools for business growth. Unlike traditional banks, private lenders such as Innovate Funding offer faster, more flexible finance that adapts to your business goals. Low leverage private credit, typically loans secured at below 70% LVR, gives borrowers and investors stronger security and better long term outcomes.

Understanding Low Leverage Private Credit

Low leverage private credit means borrowing against property or assets while maintaining a healthy equity buffer. For example, a business might take a $600,000 loan secured by a property valued at $2 million (a 30% LVR). This keeps risk low and provides room to refinance, develop, or reinvest later.

Learn more about our Secured Business Loans and First Mortgage Lending options that make these deals possible.

The Benefits of Low Leverage Private Credit

1. Lower Risk – Borrowers maintain equity and lenders enjoy added protection.

2. Flexible Terms – We can structure short term business loans around your project.

3. Faster Turnaround – Approvals often within 24 to 48 hours.

4. Tailored Solutions – Ideal for construction, refinancing, and expansion.

Who Benefits Most

• Developers needing quick access to bridging or construction finance

• Small business owners requiring working capital

• Investors seeking stable, property backed returns

• Brokers and accountants helping clients secure alternative funding

How Innovate Funding Leads in Private Credit

At Innovate Funding, we specialise in low LVR private credit across:

• First Mortgages

• Second Mortgages

• Development Loans

• Bridging Loans

Each loan is customised based on asset value, purpose, and exit strategy. Our private lending model focuses on speed, security, and service to ensure your deal settles quickly.

Case Studies: Real World Success

Technology Business Expansion – Innovate Funding delivered a $1M facility secured at 60% LVR, enabling the business to expand operations and increase revenue. Healthcare Acquisition – We structured a $2.5M commercial loan at 65% LVR to fund a medical practice purchase .Property Developer Bridging Loan – A bridging facility at 55% LVR allowed a developer to secure land before presales were finalised.

Risks and Considerations

While private credit delivers flexibility and speed, borrowers should plan their exit strategy, ensure clear valuations, and be aware that interest rates are higher than traditional bank finance. However, by keeping leverage low, Innovate Funding helps clients manage risk and achieve efficient, secure lending outcomes.

Frequently Asked Questions

What is private credit?

Private credit refers to finance provided by non bank lenders like Innovate Funding, offering flexibility and speed unavailable through traditional channels.

Why choose low leverage private credit?

Low LVR lending reduces exposure for both lenders and borrowers, allowing better terms and faster funding.

Who uses private credit?

Developers, SMEs, and investors seeking fast, tailored property backed funding.

How long does approval take?

We can often provide conditional approval within 24 to 48 hours once property details are confirmed.

Enquire or Apply Today

Want to learn how low leverage private credit could unlock growth for your next project?Contact our lending team at deals@innovatefunding.com.au or call 02 8919 3639, or apply online here.