PRIVATE AND NON-BANK LENDING
Private and Non-Bank Commercial Lending
Funding that moves when the bank cannot
Banks price well and move slowly. That trade off works until it does not, and there are transactions where the timing, the security or the trading history simply will not survive a full bank credit process.
Private and non-bank lenders exist for those transactions. They take a commercial view, they can move quickly, and they price for the risk and the speed. Used properly, that flexibility is worth a great deal. Used without a plan, it becomes expensive debt with nowhere to go.
We arrange private and non-bank funding for business purposes only.
When Private Lending Is the Right Answer
Private funding earns its cost in a narrow set of circumstances, and it is worth being clear about them.
A purchase with a settlement date that a bank cannot meet. A property acquired at auction with an unconditional contract. A development site that needs to be secured before a competitor takes it. A business with a strong asset position and a trading history that will not read well until the current year is finished. A project that needs to reach a milestone before mainstream funding becomes available. Or a situation where the certainty of a fast, uncomplicated approval is worth more to the transaction than the margin.
Outside those circumstances, the mainstream market is usually the better answer and we will tell you so.
What the Market Covers
Private and non-bank funding is a broad category rather than a single product. It includes short term first mortgage facilities secured by commercial or investment property, second mortgage and mezzanine positions behind an existing lender, bridging facilities where a purchase runs ahead of a sale, caveat and short term facilities for immediate working capital needs, and development funding for projects that do not meet mainstream presale or experience requirements.
Non-bank lenders sit between the banks and the private market. Many are well capitalised, institutionally funded, and considerably more flexible on structure and serviceability than a major while still offering term facilities at a sensible cost. For a great many businesses this middle ground is the right place to be, and it is often overlooked.
The Exit Is the Transaction
Every private lender will ask how they get repaid. It is the first question and the most important one, and a transaction that cannot answer it clearly should not proceed.
An exit is a sale with a realistic timeframe and a defensible value, a refinance to a lender whose criteria the business will actually meet by then, or a completion event with funding already committed. Hoping that conditions improve is not an exit.
We assess the exit before we take a private transaction to market, and we build the term with enough room for it to happen. A facility that expires the month the sale was optimistically expected to settle is not a facility, it is a deadline. Our work on Refinancing and Restructuring is often the second half of this story.
What Private Lending Costs, and How to Think About It
Private funding is priced well above bank lending, and the total cost includes establishment fees, line fees, legal costs, valuation costs and often an exit fee. Comparing a private facility to a bank rate tells you very little. The comparison that matters is the cost of the facility against the cost of not doing the transaction at all.
If a short term facility secures a site that delivers a development margin, or bridges a settlement that would otherwise be lost along with the deposit, the arithmetic is usually straightforward. If it is funding an operating shortfall with no clear resolution, the arithmetic rarely works and the facility tends to make the underlying problem harder to fix.
We put that calculation in front of you before you commit, including the scenario where the exit takes longer than planned.
What We Bring to a Private Transaction
Access Beyond the Obvious
Our panel covers non-bank lenders, private credit providers and specialist funders, which means the transaction goes to funders whose mandate actually fits rather than whoever answers first.
An Exit Before an Approval
We assess how the facility gets repaid before we take it to market, and we build the term with room for the exit to happen.
The Real Cost, Stated Plainly
Establishment, line, legal, valuation and exit fees modelled in full, including the scenario where the exit runs late.
A Path Back to Mainstream Funding
Private funding is a bridge to somewhere. We plan the refinance from the outset rather than treating it as next year’s problem.
How We Work With You
1. Test the Case
We look at whether private funding is warranted at all, and what the mainstream alternatives would require. Often the answer is that a non-bank term facility does the job at a fraction of the cost.
2. Structure and Place
We structure the facility around the exit, then place it with funders whose mandate, security appetite and timeframe fit the transaction.
3. Plan the Exit
We stay engaged through the term and begin the refinance well ahead of expiry, rather than in the final weeks.
What Clients Say
“Working with Yasmine was like having a trusted advisor and a close ally from day one. Her willingness to go above and beyond, combined with her deep knowledge of finance, made us feel supported and guided through every step. She brought empathy and clarity to what can often be a confusing process, something we hadn’t experienced before. What really set Yasmine apart was her integrity and follow-through. She was professional, committed to her word, and didn’t just do the deal. She invested time in understanding both our business and personal financial goals. That kind of personal involvement is rare, and it made all the difference.
Before working with Impact Brokers, we believed taking out a business loan was a negative move. But through our conversations, Yasmine showed us how ethical, well-structured finance can be a powerful tool for growth. Since then, we have doubled in size and I now see funding not as a burden but a strategy. Yasmine’s impact goes well beyond numbers. She is genuinely invested in our success, both professionally and personally. She is someone you want in your corner, whether it is navigating finance or just having someone to call who truly understands what you are building.”
Business Owners, Construction Industry | Queensland
Testimonials reflect the experience of individual clients. Results vary and are not a guarantee of any outcome.
Frequently Asked Questions
A private lender funds loans from private capital, whether from a single investor, a fund, or a family office, rather than from retail deposits. They are not banks, they set their own credit criteria, and they can take a commercial view of a transaction that a bank’s policy would not accommodate. That flexibility is reflected in the price.
When timing, security or trading history rules out mainstream funding and the transaction is worth doing anyway. Common cases are an auction purchase, a settlement a bank cannot meet, a site that has to be secured quickly, or a project that needs to reach a milestone before mainstream funding becomes available. It is a poor fit for funding an operating shortfall with no clear resolution.
Materially more than bank funding, and the headline rate is only part of it. Establishment fees, line fees, legal and valuation costs and often an exit fee all form part of the total. The comparison that matters is the full cost of the facility against the cost of not completing the transaction, modelled over a realistic term rather than the best case one.
Less than a bank, and more than you might expect. Many private lenders assess primarily on the security and the exit rather than on serviceability, which is why they can move quickly. They will still want to understand the borrower, the purpose, the security position and how the facility gets repaid. Lighter documentation does not mean no assessment.
The exit is how the facility gets repaid at the end of the term, being a sale, a refinance, or a completion event with funding already committed. It is the first question every private lender asks because the term is short and there is no expectation of amortising the debt away. A transaction that cannot state its exit clearly is one we would rather talk you out of. Refinancing and Restructuring
Sometimes. Second mortgage and mezzanine positions are available where there is sufficient equity and the first mortgagee will consent, which is often the limiting factor. Pricing reflects the subordinate security position. These facilities work best over short terms with a defined exit, and they need to be modelled against the alternative of refinancing the first mortgage instead.
The information on this page is general in nature and does not take into account your objectives, financial situation or needs. All finance is subject to lender approval, eligibility criteria, terms and conditions. Fees and charges apply. We may receive commission from lenders and referral partners in connection with facilities we arrange or refer. Nothing on this page constitutes financial, tax or legal advice, and we recommend obtaining independent advice before making any decision.
Ethical Finance Australia Pty Ltd (ABN 12 601 144 932) trading as Impact Brokers and Yasmine Shah (Credit Representative No. 540047) are Authorised Credit Representatives of QED Credit Services Pty Ltd (ACL 387856).
Start the Conversation
If you have a transaction that will not wait for a bank, the first question is whether it should go to the private market at all, and the second is how it gets repaid.
Bring the transaction, the security and the timeframe. You will get an honest assessment of whether private funding is warranted, what it will genuinely cost, and what the exit looks like.