_edited.png){kind=small}
Private Lending in Australia
Innovate Funding arranges property-secured business finance across Australia from $50,000. We work with private and non-bank lending partners and directly fund selected suitable transactions, using eligible residential or commercial property as security.
Explore lending information by state and territory, including options for first mortgages, second mortgages, business bridging finance, construction and development. Available funding depends on the property’s location and assessed value, existing secured debts, business purpose and proposed repayment strategy.
Full financial statements are not required for an initial deal assessment. Send us the amount required, business purpose, security address, estimated property value, existing debt and proposed exit. We can then assess potential funding options and explain the next steps.
What Is Private Lending?
Private lending is finance provided by private funders and non-bank lenders. Innovate Funding focuses on property-secured loans for eligible business purposes across Australia.
We arrange finance through lending partners and directly fund selected suitable transactions. We review the business purpose, property security, existing secured debts, amount required and proposed repayment strategy to identify potential funding options.
For a detailed explanation of the assessment process, loan structures, costs and risks, read how private lending works in Australia.
Private Lending Across Australia
Innovate Funding provides property-secured finance for eligible business purposes across Australia. We directly fund suitable transactions and may arrange other facilities through private and non-bank lending partners. Construction finance is generally arranged through specialist lending partners.
Available funding depends on the property type, location, accepted valuation, existing secured debt, business purpose and proposed repayment strategy.
Residential lending limits by state and territory
Residential first mortgages are generally assessed up to 65% loan-to-value ratio (LVR). Selected transactions may be considered at higher levels, subject to the metropolitan residential limits below and individual assessment.
For a first mortgage, LVR considers the proposed secured facility, including funded interest and fees. For a second mortgage, the limit applies to the combined existing and proposed secured exposure, including funded interest and fees.
These are indicative upper limits for selected transactions. Lower limits may apply, and regional properties are assessed individually.
New South Wales
Selected metropolitan residential transactions may be considered up to 75% LVR, subject to assessment. Private Lending in NSW
Queensland
Selected metropolitan residential transactions may be considered up to 75% LVR, subject to assessment. Private Lending in Queensland
Victoria
Selected metropolitan residential transactions may be considered up to 70% LVR, subject to assessment. Private Lending in Victoria
Western Australia
Selected metropolitan residential transactions may be considered up to 65% LVR, subject to assessment. Private Lending in Western Australia
Northern Territory
Selected metropolitan residential transactions may be considered up to 65% LVR, subject to assessment. Private Lending in Northern Territory
Australian Capital Territory
Selected metropolitan residential transactions may be considered up to 70% LVR, subject to assessment. Private Lending in Canberra
South Australia
Selected metropolitan residential transactions may be considered up to 70% LVR, subject to assessment. Private Lending in South Australia
Commercial property lending limits
Commercial property lending is usually assessed around 50% LVR, with up to 60% considered depending on the property type, location and individual assessment.
For commercial second mortgages, these percentages apply to the combined existing and proposed secured exposure, including funded interest and fees. Lower limits may apply.
Read our LVR and borrowing limits guide for more information about first mortgages, combined facilities and how funded interest and fees affect borrowing capacity.
Submit your funding scenario with the property address, estimated value, existing secured debt, net funds required, business purpose and proposed repayment strategy.
How Private Lending Differs From Bank Lending
Private and non-bank lenders may consider eligible business-purpose transactions that do not fit a bank’s lending criteria or required timeframe. Available options depend on the lender and the individual transaction.
Innovate Funding reviews the business purpose, property security, existing secured debts, funding requirement and proposed repayment strategy. Full financial statements are not required for our initial deal assessment.
A private facility may involve a shorter repayment period and higher interest or fees than available bank finance. Compare the total borrowing cost, net funds available, repayment obligations and conditions for completing your proposed exit.
Indicative terms, formal approval and settlement are separate stages. Settlement timing depends on lender assessment, any required valuation, legal documentation and satisfaction of funding conditions.
Submit your business funding scenario so we can assess potential options against your requirements and deadline.
How Innovate Funding Assesses Private Lending
Innovate Funding assesses each eligible business-purpose funding scenario using the property security, existing secured debts, funding requirement, borrower structure and proposed repayment strategy.
Property Security
We review the property’s type, location, estimated value, condition and marketability. Lending decisions depend on the valuation accepted by the lender. Valuation requirements vary with the property, lender and transaction.
Loan-to-Value Ratio (LVR)
LVR expresses the secured loan amount as a percentage of the accepted property value.
For a first mortgage, assessment considers the proposed secured facility. For a second mortgage, we consider the combined existing and proposed secured debt, including financed interest and fees.
Available lending limits depend on the property type, location, lender and transaction. Provide current secured loan balances and facility limits so we can assess the proposed structure.
Business Purpose and Exit Strategy
We consider the actual use of funds and how the facility is expected to be repaid within the proposed loan term.
Potential repayment sources may include a property sale, refinance or verifiable business receipts. Assessment considers the expected timing and funds available after existing debts and relevant transaction costs.
The proposed exit needs to cover the loan principal, interest and fees. Supporting information depends on the repayment strategy and transaction. Any proposed refinance remains subject to the replacement lender’s assessment and approval.
Core Private Lending Solutions in Australia
Innovate Funding arranges property-secured finance for eligible business purposes. We assess your funding requirement, property security, existing secured debt and repayment strategy to identify a suitable structure.
Property-Secured Finance
-
First Mortgage Loans - funding secured in the first mortgage position.
-
Second Mortgage Loans - additional funding behind an existing first mortgage.
-
Business Bridging Loans - short-term funding for eligible business transaction timing gaps.
-
Business Equity Release - accessing property equity for eligible business needs.
-
Construction Loans - funding for eligible construction costs.
-
Development Finance - funding for eligible land acquisition and development projects.
-
Caveat Loans - options for suitable short-term business funding scenarios involving property security.
Business Lending Options
These options remain subject to acceptable property security and individual assessment. Full financial statements are not required for an initial deal assessment. We still review the business purpose, existing debts and proposed repayment plan.
Business-Purpose Private Lending
Innovate Funding arranges property-secured finance across Australia for eligible business purposes. These may include working capital, stock and equipment purchases, business expansion, business tax debt, refinancing business debt, and eligible construction or development projects.
We assess the actual use of funds, borrower structure, property security, existing secured debt and proposed repayment strategy. Having an ABN or owning an investment property does not automatically make a loan eligible for our business-purpose lending service.
Personal and household borrowing, including finance to purchase your own home, is handled separately through our consumer lending arm.
Why a Private Lending Scenario May Not Proceed
Property equity is one part of the assessment. Innovate Funding also considers the business purpose, property security, existing secured debts, repayment strategy and required funding timeframe.
A scenario may not proceed where:
-
The proposed use of funds falls outside our eligible business-purpose lending service.
-
The property type, location or accepted valuation does not meet the lender’s requirements.
-
Existing and proposed secured debt exceeds the available lending limit after allowing for financed interest and fees.
-
The proposed repayment source is unsupported, unlikely to occur within the loan term or insufficient to repay the facility.
-
The required settlement deadline cannot be met after allowing for assessment, valuation requirements, legal documentation and funding conditions.
-
Tell us upfront about existing arrears, an approaching loan maturity date, issues affecting the security or a tight funding deadline. This helps us assess potential options and explain what further information may be needed.
Submit your business funding scenario for an initial review.
Private Lending in Australia - Frequently Asked Questions
Does Innovate Funding arrange private lending across Australia?
Yes. Innovate Funding arranges property-secured business finance across New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory.
Available funding depends on the property’s location, type and assessed value, existing secured debts, business purpose and repayment strategy. Property eligibility is assessed individually, including in regional locations. Facilities start from $50,000.
What property can secure a private business loan?
Innovate Funding considers eligible residential and commercial property as security for business-purpose finance. Industrial property, mixed-use property, land and development sites may also be considered, depending on the lender and transaction.
Assessment considers location, valuation, condition, marketability and existing secured debts. Depending on the transaction, funding may use a first mortgage or second mortgage. The funds must be used for an eligible business purpose, including when residential property provides the security.
Do I need full financial statements for an initial assessment?
No. Innovate Funding does not require full financial statements for an initial deal assessment.
To get started, provide the business purpose, amount required, property address, estimated property value, existing secured debt and proposed repayment plan. We use this information to assess potential funding options and explain the next steps. Requirements for formal approval and settlement depend on the lender and transaction.
Explore our no doc business loan information.
How fast can a private business loan settle?
Settlement time varies with the lender, property security and transaction requirements. Innovate Funding can generally provide indicative terms within 24–48 hours of receiving sufficient information.
Formal approval and settlement then depend on lender assessment, any required valuation, legal documentation, existing-lender arrangements and satisfaction of funding conditions.
Tell us your funding deadline when submitting your scenario so we can assess whether it is achievable.
How much does a private business loan cost?
Innovate Funding quotes indicative pricing for the individual transaction. Pricing depends on the property security, loan-to-value ratio, loan term, funding structure and repayment strategy.
The total cost may include interest, lender fees, brokerage, legal fees, valuation costs and administration charges. Review any minimum-interest, early-repayment and extension provisions. Ask for both the net funds available at settlement and the amount required to repay the facility, allowing for its interest structure and fees.
What are the risks of a private business loan?
A private property loan carries risks. These include interest and fees, a short repayment period, and the possibility of losing the security property if the loan is not repaid.
A delayed sale, unsuccessful refinance or late business payment can disrupt the repayment plan. Innovate Funding reviews the proposed security, loan structure and exit strategy during assessment. Borrowers should understand the total cost, default provisions and repayment obligations, and obtain independent legal advice before signing.
Is private lending legal in Australia?
Yes. Private lending is permitted in Australia, with legal requirements depending on the borrower, loan purpose and transaction structure. Consumer credit laws can apply to personal borrowing and certain residential investment loans.
Innovate Funding’s service focuses on eligible business-purpose finance secured against property. Having an ABN or describing borrowing as a business loan does not, by itself, determine its legal treatment.
Learn how private lending works in Australia.
Can a private business loan be refinanced later?
Yes, a private business loan may be refinanced, subject to the replacement lender’s assessment and approval. Refinancing should be planned before the existing facility matures.
Where refinance is the proposed exit, Innovate Funding considers how it is expected to be achieved and the supporting evidence. Changes in property value, existing debt, borrower circumstances or lender policy can affect the available options. An extension or refinance is not automatic. Compare private loan structures.
Understanding Your Options
The appropriate private lending structure depends on your business purpose, property security, existing secured debt and repayment strategy.
Before proceeding, compare the total borrowing cost, net funds available at settlement, loan term and conditions for repayment. Consider how a delayed sale, refinance or business payment could affect your proposed exit.
Read how private lending works in Australia or compare the private loan types Innovate Funding considers.
Discuss Your Business Funding Requirements
Innovate Funding arranges property-secured business finance across Australia from $50,000.
For an initial assessment, tell us the amount required, business purpose, property address, estimated property value, existing secured debt and proposed repayment strategy. Include your funding deadline so we can assess whether the timeframe is achievable.
Full financial statements are not required for an initial deal assessment. We review the scenario, assess potential funding options and explain the next steps.