How Does Private Lending Work?

How Does Private Lending Work?

Private Lending

Can't Get Funding Through the Banks?

With the introduction of tough new lending criteria in Australia, it’s now harder than ever to get finance through our traditional banking system. That’s where Quantum Capital Australia can help.

We offer a range of private lending solutions at Australia’s most competitive rates. If you’re seeking finance for property development, business expansion, or any other reason, contact our experienced team.

Our Procedure

Simply contact us and provide more details about your lending requirements. It’s that easy.

To process your application, we will require the following information:

  • The loan amount
  • Purpose of the loan
  • If possible, a breakdown of the potential expenditures
  • Loan security
  • Loan term or duration
  • Other existing loans (if available)
  • Preferred repayment method
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Gold coast aerial view at night

Your Application

After providing more details about your lending requirements, we will process your application as quickly as possible. Any information you have provided will remain confidential with us.

This information will affect certain aspects of the loan, such as the interest rate. At this point, we will also consider other fees involved, such as the establishment and valuation fees.

In most circumstances, we’ll formally table an offer within 24-48 hours. Once we have given you our loan terms, you can either accept or reject our offer. If you agree, we can process the loan almost immediately.

Loan Approval and Settlement

Once we have evaluated the borrower and the loan terms have been agreed to, we will contact you again to let you know you have been approved.

After signing the formal loan approval document, we will work to ensure your funds are transferred to your nominated account as soon as possible.

Loan Approval and Settlement
Our team at Quantum Capital Australia can help

Why Choose Private Lending?

As you can see from our process above, it is quicker and easier than when you deal with public lenders. Our mission is to make the borrowing procedure stress-free.

If your business has little to no credit history, we look at other areas of your financials to access your suitability for a loan. Often, the larger lending institutions and traditional banks will simply reject the loan, rather than looking at the bigger picture to determine if a client can successfully repay the loan (plus interest).

Interested? Contact us today to receive the funds you need for your construction, development, or business project.

Private Funding FAQs

Private lending allows consumers to get the funding they required for emergencies, buying a property, or even starting a business. Dealing with private lenders has so many benefits, including the fact that you can get the money you need quicker than when you go to seek assistance from the bank.

Private lenders themselves are entities or individuals that loan money but are not a bank or credit union.

Private and conventional lending both have a distinct process to follow. And by meeting the requirements in that process, you can obtain the funds that you need. This is basically where the similarities stop. Private lending is different from banks where the former is typically backed by an asset. Banks may also require you to provide collateral, but it does not indeed guarantee that your application will get approved.

A private lender would often base the decision on the underlying asset’s viability, rather than your personal financial history. It is why you can get a loan even if you have declared bankruptcy before or have a bad credit rating.

Usually, the private lender will evaluate the value of the property you wish to buy based on its current market price. Then, it will be assessed against the equity you have once you have purchased it.

Another difference is that a private loan is only available for a short term which typically won’t extend past two years. With conventional lending, you can get up to 30 years for a mortgage loan.

You often kickstart the process by inquiring about the type of loan you need. Please fill out this form where we ask you to provide your name and contact details, as well as the loan and the amount.

We also encourage you to be as thorough as possible when revealing your reasons for borrowing money. It may be time-consuming for you, but it does add to the probability of your application getting pre-approved.

The next thing you will receive from us is a quote, which is just an estimate of your interest rate. We will still require certain documents so we can give you a more accurate price. Remember that you will need to provide an asset as collateral or security. It can be in the form of a property that you own or your business.

Private lenders will now look into your application should you decide to continue with the process. You may be able to get an answer within 24 hours. If we need more documents or details from you, we will immediately let you know.

Then, when everything goes well, you will only need to sign, and we will take care of the underwriting procedure.

It can take a few hours to get pre-approved up to a few days. But it rarely takes a few days unless there is a problem with your initial application. In such a case, we will probably request for more information.

It always helps to provide comprehensive details regarding your loan application. These details include a clear purpose for the loan and if it is for your business or personal use. You may also want to give committed exits, which proves that you are happy to sell your security property if ever you need to exit the loan.

Even if it takes a couple of days, you can be sure that you will be paired with the right investor that can give you attractive rates and offers.

Here are the reasons why it is better than banks and other primary financing options:

  • Enjoy easer approvals with fewer documents and requirements.
  • Once you have sent your application and agree with the terms, you will know the decision, often on the same day.
  • You will get access to specialised products. Traditional lenders only provide standard loan types. With a private lender, you have other options, such as Caveat Loans and Bridging Finance.
  • A good credit history is not mandatory. Most private lenders look at the asset that you can give as collateral. If you meet the requirements and the asset has enough inherent value, the approval will surely be speedy.
  • Private lending is your quickest access to cash when there is an emergency. If your current lender is telling you to pay up or else your property will be foreclosed, you can seek a private lender.
  • If you are behind on your repayments with other loans, private lending can be the solution you need to get urgent positive assistance.

If you like a faster settlement process, remember that private loans work faster than traditional loans. Not a lot of paperwork is needed, which saves you money and time.

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