Private lending
Private lending is finance from non-bank sources, such as funds, family offices and private investors, secured on property, with terms set lender by lender.
Private lending, explained.
Private lenders can consider what banks cannot or will not, including where a bank's timing does not fit: urgent settlements, land banking, developments without presales, borrowers between financial years, and businesses with a tax debt. Terms are typically six to twenty-four months, interest is often prepaid or capitalised, and the loan size depends on the lender's assessment of the security and repayment or exit position.
Private loans to individuals for personal, domestic or household purposes, including residential investment in some cases, can fall under the National Credit Code. Business purpose does not by itself remove regulation, and the purpose of every private loan is documented.
Tools that use this term.
Does the project stack up?
Development feasibility calculator: before a lender, a valuer or a quantity surveyor looks at a project, a developer needs a first answer to one question: what margin is left after every cost, including the cost of the money.
OpenToolWhat will the repayments be?
Loan repayments calculator: principal and interest, interest-only for a period, weekly or monthly, with or without extra repayments.
OpenLonger reads from the archive.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
