Private Lending
Non-bank capital for deals that need to settle quickly or sit outside major bank policy — with a clear exit strategy from day one.
Private lending is funding sourced from non-bank capital: private investors, family offices, boutique credit funds, and solicitor-pooled funds. Loans are typically structured as first or second mortgages over real property and are unregulated, meaning lenders can take a commercial view on deals that do not fit traditional bank credit policy.
Private credit is rarely the cheapest option, but it is often the right one. The question we work through with every client is the same: what is the cost of capital versus the cost of not having capital when you need it?
When private lending makes sense
Speed
Settle in 5-15 business days when banks would take 6-12 weeks
Policy exceptions
Deals that fall outside major bank credit policy on a technical issue (presale shortfall, security type, borrower structure)
Site acquisition
Taking title before DA so you can move on a deal
Residual stock release
Capital out of completed-but-unsold stock at practical completion
GST and equity recycling
Short-term capital while you wait for refunds or refinance
Bridging
Moving between transactions without being forced into a fire sale
How private credit is structured
Most private lending is structured as a registered first or second mortgage over real property, typically at 65-80% LVR depending on asset type and location. Loan terms run from 3 months to 3 years, with rates typically 8-14% per annum and establishment fees of 1.5-3%. Most facilities are interest-only with interest either paid monthly or capitalised into the loan.
Pricing reflects the lender's higher risk appetite and faster turnaround. The structure is justified by speed and flexibility, not rate. Every deal needs a credible exit — refinance to a bank facility once the deal becomes “bankable”, or sale of the asset. A private loan without an exit is a problem we will not help you into.
Why Cumulus Capital
Curated lender panel
Not every private credit fund is run the same way. We work with funds that have a track record of ethical execution
Exit-first approach
The bank refinance plan is structured the day the private loan goes in, not the week it matures
Independent view
We are not aligned to any single lender, so the deal goes to the right capital source for your outcome
Private Lending — Frequently Asked Questions
Private lending is funding from non-bank capital — private investors, family offices, boutique credit funds, or solicitor-pooled funds — rather than authorised deposit-taking institutions. Loans are typically first or second mortgages over real property. Because private credit is unregulated, lenders can take a commercial view on deals outside traditional bank policy.
Private credit is the right choice when speed, flexibility, or policy fit outweigh rate. Common uses include site acquisition before DA, residual stock release, bridging between transactions, GST and equity recycling, and short-term capital secured against property. If a bank facility works on your timeline and structure, a bank facility is almost always cheaper.
Private loans typically carry interest rates between 8% and 14% per annum with establishment fees of 1.5-3%. Loan terms run from 3 months to 3 years. Pricing reflects the lender's higher risk appetite, faster turnaround, and willingness to take exceptions — the right deal is one where the cost of capital is justified by the outcome it enables.
For straightforward first-mortgage facilities against metropolitan property, private credit can settle in 5-15 business days. Complex deals or assets in regional locations may take longer. Compared with typical bank turnaround of 6-12 weeks, this speed is often the entire point of choosing private credit.
Private lending generally starts around $250,000 and scales up. Most active Australian private credit funds operate in the $500,000 to $30m range. Above $30m, deals typically syndicate across multiple capital sources. We size lender introductions to the deal — small-balance specialist lenders work very differently to institutional private credit.
Every private loan needs a credible exit, typically refinancing to a bank facility once the deal is bankable, or sale of the underlying asset. We work through the exit strategy before placing the loan, not after — a private loan without a clear path out is a refinance trap waiting to happen.
Most private lending to commercial borrowers is unregulated under the National Consumer Credit Protection Act, because the borrowing is for business purposes. This is what allows private lenders to take commercial views on deals that do not fit bank policy. Regulated consumer lending operates under entirely different rules.
Private lending is not a market to enter cold. There are excellent funds with strong governance and there are predatory operators. We work with a curated panel of private lenders with track records of ethical execution — funds that do not engineer defaults, do not pile on default interest, and refinance cleanly when the time comes.
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The information on this page relates to commercial finance for business purposes and is general in nature. Commercial finance is not regulated under the National Consumer Credit Protection Act 2009. Cumulus Capital Pty Ltd is a credit and finance broker authorised under Australian Credit Licence Number 389328 (held by Connective Credit Services Pty Ltd). Lender terms, fees and charges apply. Your full financial situation and requirements need to be considered prior to any offer and acceptance of a loan product.
