What Types of Loans Do Private Lenders Offer in Australia?

Innovate Funding arranges first mortgages, second mortgages, business bridging loans, equity release, and eligible construction and development finance. These facilities are secured against suitable property and assessed for eligible business purposes.

We arrange funding across Australia from $50,000 through private and non-bank lending partners and directly fund selected suitable transactions. The appropriate structure depends on the business use of funds, property security, existing debts, required timeframe and repayment plan.

Personal home purchases and personal or household spending fall outside this service.

Understanding the different private loan types

Private loan names describe different parts of a transaction:

First or second mortgage describes the lender’s security position.
Bridging, construction or development finance describes the funding purpose.
Equity release describes raising funds against an existing property.
Low-doc or no-doc describes a possible documentation approach.

These descriptions can overlap. For example, business equity release may be structured through a second mortgage, with documentation requirements determined by the lender and transaction.

Private loan structures Innovate Funding considers

First mortgage loans

A first mortgage gives the lender the primary registered mortgage position over the security property.

Innovate Funding considers first mortgage funding for eligible business property transactions, refinancing and business capital requirements. Assessment includes the proposed purpose, property value, existing debts to be repaid, loan costs and repayment strategy. Explore our first mortgage loans.

Second mortgage loans

A second mortgage provides a separate loan secured behind an existing first mortgage. It may allow a business owner to raise additional funds while keeping the first loan in place.

The assessment considers combined secured debt, available equity, existing loan conditions, any required consent or priority arrangements, and the proposed exit. Existing first-mortgage repayments continue unless the first lender agrees otherwise. Explore our business-purpose second mortgages.

Business bridging loans

Business bridging finance covers a temporary funding gap while a supported property sale, refinance or another agreed repayment source progresses.

Depending on the transaction, bridging finance may be structured through a first or second mortgage. The proposed term needs to allow enough time to complete the exit, including the relevant assessment, contract and settlement steps. Explore our business bridging finance.

Equity release for business purposes

Equity release involves raising funds against an existing property for an eligible business purpose. It may involve refinancing a first mortgage or arranging a separate second mortgage.

The cash available depends on the lender’s accepted property value, existing secured exposure, lending limits, fees and any funded interest. The difference between a property’s market value and mortgage balance is not automatically available to borrow. Explore our property equity funding for business purposes.

Construction loans

Construction finance funds eligible building works, generally through progressive drawdowns as approved stages are completed.

Innovate Funding considers suitable business-purpose construction and project-completion scenarios. Assessment includes plans and approvals, the building contract, builder experience, available equity, remaining construction costs, contingencies and repayment.

Drawdowns may require progress claims, inspections or quantity surveyor reports. Personal home-building finance falls outside this service. Explore our business-purpose construction loans.

Development loans

Development finance may fund approved costs associated with site acquisition, subdivision, civil works and construction.

Innovate Funding assesses the borrower structure and actual purpose alongside project feasibility, planning status, developer experience, equity contributions and the total funding requirement.

The proposal must explain how sales, refinancing or another supported source will provide the funds to repay the facility. Explore our land and property development finance.

Caveat loans

A caveat loan is a market term for finance involving a lender’s claimed interest in property protected by a caveat. The caveat itself does not create that interest and is not a registered second mortgage.

Innovate Funding considers eligible business-purpose caveat scenarios. The underlying security documents, existing lending arrangements and applicable state requirements need legal review. Explore our business-purpose caveat loans.

What can the funds be used for?

Eligible purposes may include:

Working capital and supplier payments.
Stock and equipment purchases.
Business expansion.
Business tax debt.
Refinancing existing business debt.
Suitable business-purpose construction and development costs.

The use of funds must be supported. Having an ABN or describing a transaction as an investment does not automatically establish eligibility. Explore our short-term business loan options.

Do I need financial statements for an initial assessment?

Innovate Funding does not require full financial statements for an initial deal assessment. We assess the business purpose, funding amount, property security, existing secured debt and proposed exit strategy.

Documentation required for formal approval and settlement depends on the lender and transaction. Construction and development proposals also require relevant project information. Read our no-doc business loan criteria.

What information does Innovate Funding need?

For an initial review, provide the borrower’s name and ABN, relevant company or trust details, the amount required, business purpose, security property, preferred term and proposed exit.

Supporting documents may include:

Identification for relevant borrowers and guarantors.
A current council rates notice for the security property.
Mortgage statements confirming existing balances and facility limits.
Evidence supporting the business use of funds.
Repayment evidence, such as a sale contract, refinance correspondence or contracted business receipts.
Trust deeds, where applicable.

The lender may also request bank statements, financial statements, an acceptable valuation and legal documents. Construction and development proposals need additional project information.

Loan amounts, LVRs and terms

Innovate Funding’s minimum loan amount is $50,000. The maximum depends on the lender, property security and transaction.

Our indicative maximum loan-to-value ratios are 70% for eligible residential security and 55% for eligible commercial security. Lower limits may apply. For second mortgages, assessment considers combined secured exposure, including the proposed facility and funded interest and fees.

Typical business-purpose terms are 3–12 months, with longer terms subject to lender approval. Construction and development facilities require assessment of the project’s funding needs and timeline.

Tell us the net funds you need after deductions, as well as any existing debts that must be repaid.

How quickly can funding be arranged?

For suitable scenarios, Innovate Funding can generally provide indicative terms within 24–48 hours of receiving sufficient information.

Indicative terms are not formal approval. Settlement follows lender assessment, valuation where required, legal documentation and satisfaction of funding conditions.

Tell us your deadline at the start so we can assess whether the proposed timeframe is realistic.

Compare the full cost and repayment requirements

Before proceeding, review the interest rate, establishment and brokerage fees, valuation and legal costs, ongoing charges, early-repayment conditions and discharge costs.

Confirm whether interest is paid monthly, retained from the advance or capitalised, and how that affects net funds and the final payout.

A delayed sale, refinance or business payment can disrupt repayment. If the loan is not repaid, the property offered as security may be at risk. Obtain independent advice before committing.

Penrith example: $250,000 for business working capital

Innovate Funding arranged a $250,000 second mortgage behind an existing CBA loan over a Penrith property.

That transaction had a six-month term, capitalised interest and a 60% combined LVR. The funds supported supplier payments and ongoing contracted work, with repayment planned from contracted business receipts. Settlement took nine business days. Read the Penrith second mortgage case study for the circumstances and structure of that transaction.

Discuss your business funding scenario

You do not need to choose a loan type before contacting Innovate Funding. Tell us the net amount required, business purpose, property security, existing debts, deadline and proposed repayment source.

Submit your funding scenario for an initial review, or call 02 8919 3639.

For more detail on eligibility, documentation, costs and repayment, visit our private lending FAQs.

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