Lending criteria and lender facts

This page is the plain record of what the lender behind Secured Business Finance does and doesn’t do. The same facts appear, in the same words, across every page of this site. If you read something elsewhere on the site that seems to differ from this page, this page is the reference.

What does the lender offer?

Item	Fact
Lender	fundU, a direct private business lender
Loan amounts	$20,000 to $5,000,000
Structures	Private first mortgages, second mortgages and caveat loans
Security	Residential, commercial or industrial property
Vacant land and rural property	Considered case by case
Term, first mortgages	1 to 24 months
Term, second mortgages and caveat loans	Typically shorter-term
Interest	Can be prepaid or capitalised (added to the loan), so there may be no monthly repayments; arranged per deal
Caveat loans	Can later be converted to a registered second mortgage
Property assessment	No formal valuation required; the lender assesses the property itself
Speed	Funding possible within 24–48 hours for up to $5m once documents are in; $20k–$250k possible same day
Credit history	Bad credit, ATO debt and past defaults considered case by case
Exit	Every loan needs a clear exit strategy
Fees	A small assessment fee, varying per loan, shown on the Letter of Offer
Purpose	Business purposes only
Enquiry	60 seconds; no credit check when you first enquire

What does the lender look at?

Five things decide whether a deal works and how it’s structured. None of them is a hidden formula.

1. The property. Its type, location, condition and title. The lender assesses it directly, without a formal report. Our page on how assessment works with no formal valuation required explains the method.
2. What’s already owing on it. Every mortgage, caveat and other debt secured on the property, because the new loan has to fit within the remaining equity. Moneysmart defines LVR as the loan amount divided by the value of the asset; on a second mortgage or caveat, the existing debt counts too.
3. The purpose. What the money is for, and confirmation that it’s a business purpose.
4. The exit. How and when the loan will be repaid: a sale, a refinance to a bank, business cash flow, the settlement of a sale, or a similar event.
5. Who owns and who signs. Every registered owner, any company or trust involved, and any guarantor.

There is no single published maximum LVR. The amount offered depends on the property, whether the loan ranks first or second, the term and the exit. The guide to how private lenders assess a loan shows how these are weighed.

What isn’t offered?

Being clear about this saves everyone time.

• Consumer lending. No home loans to live in, no personal loans and no loans for household spending. ASIC explains that the National Credit Code applies to credit whose purpose is wholly or mainly personal, domestic or household; that isn’t this lender’s business.
• Unsecured loans. Every loan is secured on property.
• Construction loans with progress draws. Developer funding is secured against existing property, not paid out stage by stage as a build progresses. See developer finance secured on property.
• A published price list. Every loan is priced on its own security, LVR, term and exit, so a single advertised figure would mislead more borrowers than it helped.

How does an enquiry become a loan?

Step	What happens
1. Enquiry	About 60 seconds: how much, what for, the property, roughly what it’s worth and what’s owing. No credit check.
2. Specialist call	The figures, the purpose and the exit are checked, and the right structure is recommended.
3. Documents and assessment	ID, property details, what’s owing and exit evidence. No formal valuation required.
4. Letter of Offer	Amount, term, interest method, all fees and conditions in writing. Have your solicitor review it.
5. Settlement	Solicitors sign off, the security is lodged and funds are paid. Settlement often runs through PEXA, where documents are lodged with the land registry and funds exchanged electronically.

The how it works page covers each step in more depth.

What should you have ready?

• Photo ID for every borrower and guarantor.
• Recent statements for any loan secured on the property.
• Council rates notices for the property.
• Company or trust details, if an entity owns the property or borrows.
• A short explanation of how the loan will be repaid.

How is pricing set?

Each loan is priced on its security, LVR, term and exit, and the aim is the sharpest price that situation allows. A second mortgage or caveat loan generally costs more than a first mortgage, because the lender ranks behind another lender and carries more risk. The small assessment fee and every other cost appear on the Letter of Offer before you sign. Our guide to private mortgage costs explains each line you may see.

How do your details travel?

Your enquiry goes to one direct lender. It isn’t sold, auctioned or sent to a panel of funders. A secured-lending specialist reads it and calls you. Please answer the questions about the property and what’s owing accurately; that’s what gets you a reliable answer on the first call.

How the information on this site is researched and kept current is set out in our editorial policy.

Does your deal fit these criteria?

If you own property with equity, need funds for a business purpose and can see how the loan would be repaid, it’s worth a minute to ask. There’s no credit check, and a secured-lending specialist reads every enquiry. Check your deal against the criteria or, if you’d rather compare structures first, try the 60-second structure quiz.

Start your enquiry