Questions
Private lending, answered
The questions borrowers, developers and brokers ask us most. If yours isn’t here, call or send an enquiry — we’ll give you a straight answer.
Who we can help
- Can a company get a private mortgage in Australia?
- Yes. Every loan we arrange is to an entity borrower — a Pty Ltd company, a corporate trustee of a trust, or a partnership — secured by Australian real property and used for a business or investment purpose. Credit to a body corporate sits outside the National Credit Code, which is what lets non-bank lenders and private investors fund these loans quickly.
- Can an individual borrow through Private Credit Loans?
- No. We do not arrange loans to natural persons, even for investment purposes, and we never arrange loans on owner-occupied homes. If you borrow personally you need a licensed credit provider. If you operate through a Pty Ltd company or trust, you may be eligible.
- Do you arrange loans for SMSF or self-managed super funds?
- Not as a product line. Limited recourse borrowing by a super fund has its own rules and most of our panel does not lend into that structure. If the borrower is a corporate trustee of an ordinary (non-super) trust, that is a normal entity borrower and we can help.
- Does a bad credit history or a prior default rule me out?
- Not automatically. Private lenders assess the security property, the exit strategy and the business purpose first, and the entity's history second. A credit event will be a factor in pricing and in which funder is approached, and we will tell you honestly if a deal is unlikely to be funded.
- Can I get a business loan if I have an ATO debt?
- Often, yes — clearing an ATO liability is one of the most common business purposes we see. A first or second mortgage over property the entity owns can refinance the debt into a single facility with a clear exit. The ATO balance and any payment arrangement need to be disclosed up front.
Loan structures
- What is the difference between a first mortgage and a second mortgage?
- A first mortgage is the lender's registered first-ranking security over the property. A second mortgage ranks behind an existing first mortgagee (often a bank) and requires that lender's written consent. Second mortgages are used to raise capital without refinancing a first mortgage you want to keep.
- What is the difference between a caveat loan and a second mortgage?
- A caveat is an unregistered claim lodged on the title; a second mortgage is a registered interest. We only arrange registered first and second mortgages — not caveat-only loans. Our article on second mortgages versus caveat loans explains the trade-offs.
- What LVR do private lenders go to?
- Our panel typically supports up to 75% LVR gross for first mortgages, and up to 75% combined for a first plus second. Higher ratios are occasionally workable on strong deals, but the LVR, the security and the exit are assessed together — there is no fixed number.
- What is the minimum loan size?
- Second mortgages start at $100k. First mortgages, construction finance and renovation and flip finance start at $250k. Loans above $10M are arranged case by case with a funder that has the capacity.
- Can you arrange construction finance without presales?
- Yes. Several panel lenders fund residential and mixed-use construction without presale cover, lending against the as-if-complete value with progressive drawdowns certified by a quantity surveyor. The borrower is normally a Pty Ltd special-purpose vehicle with a fixed-price build contract and a credible exit.
- Do you arrange bridging finance?
- Yes, as a first or second mortgage with a short term. Typical cases are a settlement that cannot wait for bank approval, a deposit on a second property before the first is sold, or a gap between a loan maturing and a refinance completing. The exit — sale, refinance or incoming funds — has to be identifiable at the outset.
Process and timing
- How fast can a private lender settle?
- A clean file typically settles in 5–10 business days from the term sheet. Settlement inside 24 to 48 hours is achievable for genuinely time-critical loans, but only when the borrower and their solicitor can sign documents, give the valuer access and answer queries immediately.
- What happens after I submit an enquiry?
- We come back within one business day with a read on fit or clarifying questions, package the deal, and take it to the panel lender or private investor most likely to fund it. Indicative terms usually follow typically within 24–48 hours, then a conditional offer, valuation, documentation and settlement.
- What documents do I need for indicative terms?
- Very little at the start: the borrowing entity's name and ABN/ACN, the security property address and any existing mortgages, the amount, term and purpose, and a short note on the exit. The full documentation pack is only needed once indicative terms are accepted.
- What is a Business Purpose Declaration?
- A signed statement that the loan will be applied wholly or predominantly for business or investment purposes and not for personal, domestic or household use. Every borrower signs one before drawdown. It is part of how the loan sits outside the National Consumer Credit Protection Act.
- Do you lend your own money?
- No. We are a commercial finance broker and introducer. The funds come from a panel of non-bank commercial lenders and private investors. We package the deal, choose the funder, negotiate terms and manage the process through to settlement.
Costs and pricing
- What interest rate do private lenders charge?
- We do not publish rates, because pricing is set by the individual lender or investor on each deal and depends on the security, the LVR, the term, the exit and the borrower. Indicative pricing is disclosed in the term sheet before you commit to anything.
- What fees are involved in a private loan?
- Typically a brokerage fee (earned when the funder issues a letter of offer), a lender commitment or establishment fee, the valuation, the lender's legal costs, and government registration charges. Our fees page explains each one, and your mandate sets out exactly which apply before any work starts.
- Is private lending regulated in Australia?
- Loans to companies and other body corporates for business purposes are outside the National Credit Code, so the consumer-credit licensing regime does not apply to them. They are still governed by contract and property law, and brokers remain subject to the general law on misleading conduct. Loans to individuals are a different matter and need a licensed credit provider.
Unfamiliar with a term? See the private lending glossary. For product parameters, start with the loan products overview.
Important — Business Purpose Lending Only
IMPORTANT — BUSINESS PURPOSE LENDING ONLY. Andorra Capital Solutions Pty Ltd (ACN 675 464 623 / ABN 32 675 464 623) is a commercial finance broker and introducer. We arrange property-secured business-purpose loans between Australian corporate borrowers and a panel of non-bank lenders and private investors. We do not provide credit ourselves. We do not arrange consumer credit and we do not arrange credit regulated by the National Consumer Credit Protection Act 2009 (Cth) (NCCP Act) or the National Credit Code. We are not an Australian Credit Licensee. Every loan arranged through us is either to a borrower that is not a natural person (outside the National Credit Code under section 5(1)) or for purposes that are wholly or predominantly business or investment purposes (outside under section 6(1)), or both. All borrowers are required to execute a Business Purpose Declaration and to evidence the true business purpose of the funds. No part of any loan arranged through us may be applied for personal, domestic or household purposes. If a borrower applies any part of the funds for a purpose to which the NCCP Act would apply, the borrower does so in breach of the loan agreement and indemnifies the lender against any resulting loss, claim or cost. The information on this website is general in nature, does not constitute financial, legal or taxation advice, and does not take into account your objectives, financial situation or needs. No interest rates, fees or other commercial terms are advertised on this website; pricing is determined by the relevant panel lender or private investor and is disclosed to the borrower as part of indicative terms. All loans are subject to credit assessment, satisfactory security, valuation, and execution of formal loan documentation by the relevant lender. For consumer credit (regulated under the NCCP Act), contact a licensed credit provider.