Our Latest Articles About Private Lending [Updated for 2021]

The Latest Private Lending News

Private lenders do things differently compared to banks and mainstream lending institutions. Instead of focusing on your credit history and serviceability, private lenders make their own decisions based on your application.

Banks tend to let you wait for a long time even if you have proper credentials. Private lending, on the other hand, disperses funds as soon as you’re approved. With these advantages, it is no wonder why non-bank lenders have risen in popularity since the COVID-19 pandemic.

Many construction and property development projects were forced to shut down their operations. Others that continued required funds more than ever. As the rules become more lenient and the world is ready to reopen, businesses are in dire need of financial assistance. Banks, however, are more vigilant than ever, offering fewer options with stricter requirements.

Private lenders target those who cannot obtain a loan from traditional lenders. If you need to settle or complete financing for a construction or development site, private lending solutions are available.

Borrowers who require finance for business purposes, including acquiring land for a development project, paying an outstanding ATO debt, and urgent funding for business purchases, can turn to private lending.

Do Private Lenders Need a License?

Licensed private lender shaking a client's hand

In Australia, most private lenders who engage in lending activities covered by the National Consumer Credit Protection Act 2009 (NCCP) are required to hold an Australian Credit Licence (ACL).

This includes those offering loans to consumers for personal, domestic, or household purposes, such as home loans, personal loans, and credit cards.

If a private lender is involved in business lending or providing credit to corporations, the requirements may differ, and an ACL may not be necessary.

However, the specifics can depend on the nature of the lending activities and the types of loans offered. It’s always advisable for lenders to seek legal advice to ensure compliance with the relevant laws and regulations.

In this article, I’ve covered the licensing requirements for private lenders, exemptions, and the critical role of the Australian Securities and Investments Commission (ASIC) in overseeing these regulations.


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Bad Credit Home Loans: How We Help Where Banks Fail

Aerial view australian suburb.

When you begin searching for a home, you can count on many opinions and advice you do not need. Among these are usually a few half-truths and false assumptions about the industry. One such topic is getting a home loan with bad credit. People often believe that their journey to homeownership is over if they have a poor credit history. However, where conventional banks fail, we might be able to find a solution for you.


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Private Lending vs. Bank Lending: Understanding the Differences

Deciding what type of lender you want to work with is the first step toward finding the right lender for you.

If you are looking for a loan, it is likely that your thoughts automatically turn to a traditional bank. You may already have a relationship with a bank that holds car loans, mortgages and the like. However, you are doing yourself a disservice if you maintain the status quo and do not explore the other options available in loan lending.


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Private Lending for Property Development in Australia

complex under construction private lending

Before commencing any property development project, one of the most crucial factors to consider is your budget. If you need financial help, you should first know how much you can borrow. At the same time, you should also know if you can manage all the costs involved.

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9 Benefits of Private Lending in 2023

Private lending is an option to explore if you're looking for money to start or grow your business.

Updated: 15/03/2023

While most people aren’t entirely clear on the differences between private lenders and traditional banks, private lending is hardly a new concept. Recent tighter regulations have made traditional loans from big banks and larger lending institutions difficult to nearly impossible to secure for some borrowers. For this reason, private lending in 2023 may be the right solution for your home, commercial, or development finance needs.


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Private Lending Facts That You Need To Know About

Private lending involves the issuing of private loans that are not underwritten using third-party guidelines by a mortgage lender.

If you are having difficulties securing a loan from banks and are ready to give up, it might be time to look into private lending sources. In the majority of cases, private lenders will say yes when banks and second-tier lending specialists refuse to approve the loan.


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Growth of Private Sector Funding in Australia

View of Perth skyscrapers and buildings at night.

By many accounts, Australia’s private debt market will experience sustained exponential growth. Moving beyond the economic climate marked by Covid-19, substantial increases in private sector funding led to a record $133 billion growth by the end of 2021.


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Non-Bank Lenders Explained: What Are They and Their Benefits? 

Private lending in Sydney Western Australia.

Non-bank lenders have successfully made their way into the lending industry.

Incumbent banks see them as significant threats. They have the technology, and give efficient lending services, particularly to development and business finance. 

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