Private business loans backed by property

There are two ways to win a bank’s business loan. One is to fit the model: a few years of clean financials, a turnover that services the debt on paper, a spotless credit file and the patience to wait for a credit committee. The other is to look elsewhere. A private business loan is for owners who have something more useful than a perfect file, which is property with equity and a clear plan for the money.

We are a direct private lender. We write private business loans from $20,000 to $5,000,000, secured on Australian property, for companies, trusts and sole traders. This page covers what a private business loan is, what it can pay for, how we assess one, how repayments work and what it costs to use.

What makes a business loan “private”?

The word refers to the source of the money and the way the decision is made. A bank funds loans from deposits and applies standardised policy. A private lender funds from its own capital or from investors, and judges each deal individually. ASIC’s 2025 report on private credit describes this part of the market growing quickly as businesses look past the banks for flexibility and speed.

Private lending isn’t one product. Some private lenders write unsecured loans repaid by daily debits. Others fund construction. Ours are secured business loans: the money is for a business purpose and the security is real property. That distinction matters, because the security is what lets us look past the gaps in a file that would stop a bank.

What a bank usually needs	What we look at instead
Two or more years of trading	Property equity, whether the business is new or old
Financial statements and tax returns	The purpose of the loan and how it will be repaid
A serviceability calculation	The exit: a sale, refinance, contract or refund
A clean credit history	The whole picture; past problems aren’t disqualifying alone
A sworn valuation	Our own assessment of the property

What can a private business loan pay for?

Almost any genuine business purpose. The loans we see most often:

• Tax. Clearing an ATO debt, a director penalty notice or a defaulted payment plan. See paying ATO debt with property equity.
• Cash flow. Working capital while a big customer pays slowly, stock ahead of a peak season, or payroll and super.
• Growth. A fit-out or new premises, equipment and machinery a financier won’t touch, or funding a large contract before the first payment lands.
• Ownership changes. Buying out a partner, buying a business or a management buyout.
• Property. Deposits, duty, settlement shortfalls and buying business premises.
• Repairs to the balance sheet. Consolidating expensive debt, including daily-debit online loans, into one facility with no repayments for six months.

The loan purposes hub covers more than twenty of these in detail.

Who can borrow?

Companies, trusts and sole traders. There’s no minimum trading period, so a business that opened last month is assessed on the same basis as one with twenty years behind it; our page on start-up businesses explains how that works. There’s no minimum turnover and no serviceability test.

Credit history is part of the conversation but never the whole of it. Defaults, arrears, ATO debt and thin credit files are considered, and none is disqualifying on its own. Often the loan is the thing that clears the problem. Read bad credit secured business loans for how we look at a damaged file.

The one firm requirement is property. It can be your home, an investment property, business premises, a factory, a rural holding or vacant land, owned personally, by a company or through a trust. Several properties can secure one loan, and a family member or related entity can offer their property as third-party security.

How much can you borrow?

Between $20,000 and $5,000,000, limited by the equity in the property. Homes and units can be geared to 80% of value in total, commercial and industrial buildings to 70%. Acreage is treated more carefully, as are properties valued under $800,000, and any existing mortgage is deducted before we work out what’s left.

A quick example. An owner has a home worth about $1.1 million with $520,000 owing to the bank. At 80%, total lending on the home could reach $880,000, which leaves room for a second mortgage of up to about $360,000 behind the bank. The figures are illustrative; your own come from the property, and the borrowing calculator will give you a first read in under a minute.

How do repayments work?

Private business loans with us are built around cash flow rather than against it.

• Months one to six: nothing to pay. Interest is capitalised for up to 6 months, which means it’s added to the loan balance rather than debited from your account.
• After month six: interest-only. Interest is paid monthly, and the principal waits for your exit.
• Whenever cash arrives: pay it down. Ad-hoc reductions start at $10,000, with no daily or weekly direct debits.
• When the exit lands: repay in full. There’s no early repayment penalty, and any unused capitalised interest is rebated.

Because our terms are open, with no minimum and no maximum, there’s no maturity date to race and no fee to extend. You still need a realistic exit, but a slow sale or a bank that takes an extra month doesn’t push you into default. The capitalised interest worked example shows how the balance moves.

What does a private business loan cost?

More than a bank loan over the same period, and usually much less than the cost of the problem it solves, whether that’s a lost settlement, a garnishee notice or a supplier stopping supply. No two loans carry the same risk, so we don’t advertise a rate. A clean first mortgage over a debt-free property will usually come out keenest, and a loan behind another lender a little higher; in every case the aim is the best price that particular deal can carry.

Absent from the bill: valuer’s invoices, account-keeping charges, line fees and extension fees. The only upfront cost of ours is a modest commitment fee, and it’s due only after conditional approval, and every cost appears on the Letter of Offer before you sign. Interest on money borrowed for a business purpose is generally deductible, while the ATO’s own general interest charge no longer is, so ask your accountant how that comparison plays out for you.

How do private business loans compare with the alternatives?

• A bank loan is cheaper when you qualify and have time. If you don’t, or you can’t wait, it isn’t really an alternative.
• An unsecured online loan can be quick, but it’s usually smaller, shorter and repaid by daily or weekly debits that strain cash flow. See secured vs unsecured business loans.
• An ATO payment plan can work for smaller debts, but the general interest charge keeps accruing and is no longer deductible. Our guide on ATO payment plans vs secured loans compares them.
• Selling property raises cash without debt, but takes months and can’t be undone. Read borrow against property or sell it.

How do you apply?

1. Check my deal or call 1300 93 83 87 with the amount, the purpose, the property and what’s owing. No credit check.
2. Have a short call. A specialist gives you an indicative yes or no, usually within minutes.
3. Send three documents. Photo ID, a rates notice and the latest mortgage statement, about 15 minutes’ work, for conditional approval.
4. Sign and settle. Funding can happen in as little as 24 hours from a clean, complete scenario.

Get a straight answer on your private business loan

If you own property with equity and the money is for your business, a short conversation will tell you whether the deal works and roughly how it would be set up. Your details stay with us, and nobody runs a credit check just because you asked. Check my deal or call 1300 93 83 87.