Explore private lender options for business cashflow, an urgent settlement, ATO debt or a second mortgage. Balmoral compares the security, total cost and repayment plan before helping you progress with a lender.
Private lending explained
Private lending is finance provided by private lenders or credit funds. For property-backed business borrowing, the lender considers the security, the commercial purpose and a credible way to repay the debt.
It may suit a transaction that falls outside a bank's timing, documentation or credit policy. A bank delay or decline is a reason to review the options, not evidence that a private loan is affordable or appropriate.
Balmoral Commercial Finance is a brokerage. We help you compare private, specialist non-bank and bank pathways against the facts of your transaction.
Common borrowing needs
Start with the problem you need to solve, then compare the available structures.
Use property equity to bridge a defined business expense or funding gap, with a repayment plan that can be checked.
Read the guide →Assess whether valuation, legal work and lender funding can meet a real settlement deadline.
Read the guide →Review the security, debt position and repayment plan alongside the relevant tax and legal advice.
Read the guide →Compare a new first mortgage with borrowing behind an existing lender, including consent and combined debt.
Read the guide →Understand the claim, payout and legal steps before assuming that a new loan can discharge existing security.
Read the guide →Build the exit into the proposal and check what must happen before a longer-term lender can take over.
Read the guide →Borrower and security fit
Suitable scenarios generally need a genuine business purpose, acceptable residential or commercial property, usable equity and a credible repayment source. The lender also considers the borrower, ownership structure, credit conduct and legal position.
Full financial statements may not always be required, but alternative evidence and lender assessment still matter. Read about low-doc commercial loans if your financials are incomplete.
If there is no acceptable security or no realistic way to repay, this pathway may not suit. Property provided as security can be at risk if the loan is not repaid.
Loan amount, costs and timing
Private lenders do not share a single rate, borrowing limit or settlement timetable. Ask for terms based on your actual security and funding need.
The loan-to-value ratio compares debt with the lender's accepted property value. Check existing debt, mortgage priority, retained interest and fees as well as the proposed advance.
Ask for interest over the expected term, establishment and brokerage fees, valuation, legal and registration costs, and any line or discharge fees.
A facility limit is not the same as cash in your account. Existing loan payouts, retained interest and upfront fees may be deducted before funds are released.
Match the term to an evidenced sale, refinance or repayment plan. Check minimum-interest periods and any early repayment conditions.
An indicative response is not a commitment to settle. Valuation, title checks, consents, documentation and lender funding must all be ready.
Check extension conditions, default interest and enforcement risks before accepting the loan. Allow time to prepare an alternative exit.
See the private lending cost guide and illustrative calculation, accepted security guide and exit strategy guide.
Compare the funding pathways
The right channel depends on the transaction. These are comparison questions, not product eligibility rules or a promise of funding.
| Check | Bank | Specialist non-bank | Private lender |
|---|---|---|---|
| Repayment case | Can documented ongoing income support the facility? | Will alternative income evidence or a different policy fit? | Can the proposed repayment or exit be evidenced within the term? |
| Security and structure | Does the property and borrowing structure fit bank policy? | Is there an acceptable structure outside the bank's criteria? | Is there enough usable equity after existing debt, priority and costs? |
| Timing | Can assessment and documentation meet the deadline? | What valuation, credit and legal steps remain? | Can all conditions be satisfied before settlement? A quick indication is not settlement. |
| Cost and exit | Compare the full term, covenants and ongoing repayments. | Compare rate, fees, repayment conditions and refinance options. | Compare net proceeds, total term cost, minimum interest and a delayed exit. |
A lender's label does not establish its terms. Compare actual written proposals against the same funding amount, timetable and repayment plan.
Documents to prepare
Start with the headline facts. A broker can then identify the evidence needed for the relevant lender and structure.
For the first conversation, send the amount, purpose, property position, deadline and proposed exit. Supporting documents come next, once we understand the likely pathway.
The eligibility checker gives an indicative first pass. It is not a credit approval or an offer of finance.
Balmoral case studies
These published examples describe individual transactions. They do not predict approval, pricing or timing for another borrower.
Mornington Peninsula, Victoria
Western Australia recycling business
Model the numbers
Use the calculator to explore upfront fees, serviced or retained interest, a capitalised exit and the extra cost of a delay. Inputs are hypothetical until checked against written lender terms.
Calculate costs and net fundsUse the private lending referral checklist to prepare the first conversation, then explore working with Balmoral as a referral partner.
Private lending questions
What is private lending?
Private lending is finance provided by private lenders or credit funds. For the business-purpose loans discussed here, a lender assesses property security, the use of funds, the borrower and how the debt will be repaid. Balmoral is a commercial finance broker that compares and arranges lender options; it does not provide the loan itself.
Can I use residential property as security for a business loan?
Residential or commercial property may be considered as security for a genuine business-purpose loan, subject to lender policy, valuation, ownership, existing debt and legal checks. The purpose of the borrowing and the type of property are separate questions. Property offered as security is at risk if the loan is not repaid.
How much can I borrow through a private lender?
There is no single loan limit or loan-to-value ratio for every private lender. The amount depends on the accepted property value, location, mortgage priority, existing debt, loan term and exit. Ask for both the total facility amount and the cash available after payouts, retained interest and fees.
What does a private business loan cost?
Compare the interest over the expected term plus establishment, brokerage, valuation, legal, line, discharge and other applicable fees. Check minimum-interest periods and what happens if repayment is late or an extension is needed. Balmoral can help compare the written terms for a particular scenario; there is no single advertised rate that applies to every borrower.
How quickly can private lending settle?
Settlement timing depends on lender assessment, valuation, title and payout checks, mortgage consents, legal documents and the availability of funds. An indicative response is not approval or settlement. Provide the required settlement date and documents early so a broker can check whether the timetable is realistic.
Can private lending help with ATO debt or business cashflow?
It may be an option where there is suitable property security, a defined business funding need and a credible repayment or refinance plan. Tax obligations and deadlines need to be considered with your accountant or legal adviser. Taking a new loan does not by itself resolve an ongoing cashflow shortfall or stop legal action.
Can I obtain a second mortgage without refinancing the first loan?
A private second mortgage may leave the first loan in place, subject to both lenders' requirements, available equity, priority arrangements and any necessary consent. The combined debt and total cost need to be affordable, and the proposed exit must cover both facilities where relevant.
Can I apply without completed financial statements?
Some lenders may consider alternative evidence such as business bank statements, BAS, lease income or accountant information, depending on the loan and borrower. Reduced documentation does not remove assessment of the purpose, security, conduct and repayment or exit strategy.
What happens when a short-term private loan ends?
The agreed exit may be a sale, refinance or repayment from an evidenced source. Start preparing before maturity and allow for delays. A future refinance or extension is not guaranteed; if the exit fails, additional costs and enforcement against the security may follow.
Learn more in our Australian private lending guide and the private lender versus non-bank lender comparison.
Tell us the amount, business purpose, property security and deadline. We will review the funding options and what needs to happen next.
General information only. Finance is subject to lender assessment, security and legal requirements. Terms, fees and timing depend on the transaction. About Balmoral Commercial Finance.