Banks are built for borrowers who fit neatly into a box. Builders mostly don’t. Your income swings with the job cycle, your tax returns lag, and the opportunities that make you money usually come with a deadline the bank can’t meet. A private lender for builders fills that gap: fast decisions, sensible security, and a lender who actually listens to the deal.
We work with a panel of private lending partners across Australia and match you with the right one.
What is a private lender?
A private lender is a non bank lender that funds loans from private or wholesale capital rather than customer deposits. For builders, that usually means short term business loans secured by a first or second mortgage over real estate you already own.
Private lenders don’t run your application through a credit scoring model and wait for a committee. They look at the deal in front of them and make a call.
How private lenders assess a builder
Three questions drive nearly every decision:
- What’s the security? Equity in a home, investment property, commercial property or land with equity, owned by you, your company or a guarantor.
- What’s the money for? Finishing a build, buying a site, paying suppliers, clearing an ATO debt. It must be for business purposes.
- How will you repay? Selling a completed house, refinancing to a bank, a large progress payment or another settlement.
That’s why no financials or cash flow records are needed, and why bad credit is considered. If the security is solid and the exit makes sense, most other things can be worked through.
The property doesn’t have to be in your own name. A company, a family trust or a guarantor such as a business partner or family member can offer the security, as long as everyone understands what they’re signing. Anyone guaranteeing a loan should get independent advice first.
When should a builder use a private lender?
Private lending is a tool for specific moments, not a replacement for long term bank finance. It makes sense when:
- Speed matters. Property secured loans can be funded in as little as 24 hours in some cases, typically within a few days.
- The bank said no. Complex income, a recent loss, an ATO debt or a credit blemish. See our guide on what to do when the bank said no to construction finance.
- The bank’s too slow. A land settlement or auction won’t wait for a credit team.
- You need a bridge. Buying before selling, or carrying costs until a completed house settles. Read about business bridging loans.
- Your books are behind. You need money now and your accountant needs three months.
What a private lender won’t do
Being clear about limits saves everyone time. Our lending partners:
- Don’t lend on “as if complete” values. Security is existing property equity, valued as it stands today.
- Don’t fund large developments. We fund small builds only: a house or two, a duplex, townhouses, a small 2 to 4 lot subdivision, a small shed, office or warehouse.
- Don’t do long term loans. Terms typically run 1 to 12 months.
- Don’t lend for personal or consumer purposes. It has to be business or investment related.
What about pricing?
Private loans are priced for speed, flexibility and risk. Every loan is priced on your individual circumstances, and we find the sharpest rate available for your situation. The right question isn’t just “what does it cost?” but “what does it cost me not to do this deal?” A lost site, a stalled build or a supplier on stop usually costs more.
Example: a builder with lumpy income
Hypothetical example only.
A small builder in the Hunter Valley had a strong year two years ago, a weak year last year after a client dispute, and a strong pipeline now. His bank looks at last year’s return and declines a loan to buy materials for three new homes.
He has a large amount of equity in a debt free investment property. A private lender looks at the property, the contracts in hand and the settlements due in the next six months. He takes a fast first mortgage over the investment property, buys the materials, and repays as the first two homes settle.
Questions to ask any private lender
- How is the loan secured, and on what value?
- What’s the term, and what happens if I need a little longer?
- Are there any costs to repay early?
- What do you need from me to settle this week?
Your lending specialist will walk you through the answers for your deal before you sign anything.
Key facts: private lender for builders
- Loan size: $20,000 to $5 million
- Security: Existing property equity (home, investment property, commercial property or land)
- Speed: As little as 24 hours in some cases; typically a few days once valuation and documents are in
- Term: Typically 1 to 12 months
- Financials: Not needed; bad credit considered
- Suits: Small builders, owner builders and trade businesses needing fast, flexible finance
Talk to a lender who gets building
Read more about how it all fits together on our builder finance page or see how it works. When you’re ready, check your options in about 60 seconds. We’ll tell you quickly if we can help.
