Scenarios that fit private lending

Which scenarios fit?

The clusters below cover the bulk of the live private lending book. Each links through to a scenario page with file shape, indicative structure, and what credit will ask for.

Bank decline, strong asset

File declined by a bank on policy, not on real credit quality. Strong security, credible exit, identifiable reason for the bank's decline (DTI cap, recent self-employment, audited financials not yet in place). Bank declined, strong asset scenario.

Urgent property settlement

Contract has to settle inside a tight window, auction purchase, expiring option, sunset clause, that the bank channel cannot meet. Urgent property settlement scenario.

ATO tax debt refinance

Borrower with property equity and an ATO obligation that needs to clear to restore the business's bank position. Short-dated facility against the equity, exit on bank refinance once the tax position is cleared. ATO tax debt refinance scenario.

Bridging before sale

New property has to settle before the existing one is sold. Bridging over the gap, sized to the sale exit. Bridging before property sale scenario.

Developer completion funding

A project that needs the last tranche of capital to finish or hold stock through a sale period. Short-dated structured against the completed asset. Developer completion funding scenario.

Self-employed without 2 years financials

Real cashflow, real security, no two-year audited financials yet. A common file shape across acquisitions and refinancing. Self-employed declined scenario.

Settlement about to fall over

A settlement is in jeopardy: bank refinance not landing on the assumed timeline, valuation short, deposit shortfall. A short-dated facility can save the contract. Settlement about to fall over scenario.

Cashout against property equity

Capital release against existing property equity for a business or investment purpose, without disturbing the existing first mortgage. Cashout against property equity scenario.

Frequently asked

• How do I know if my client's scenario fits a private lender?
  Two quick tests. Time: can the bank settle inside the available window? If no, look at private. Policy: does the file fail bank assessment rules despite real security and a credible exit? If yes, look at private. Files that pass both tests are usually best placed with a bank.
• What happens if a scenario does not quite fit?
  The credit team will say so quickly, often with a note on what would need to change for it to work. A re-shaped scenario can sometimes work where the original could not; brokers regularly come back with a tweaked structure once the credit team has surfaced the constraint.
• Should I always lead with private lending for self-employed borrowers?
  No. Some self-employed borrowers have two years of clean financials and clear PAYG-equivalent serviceability; for those, the bank is usually the right call. Private lending is the path when the file genuinely fails bank policy, not as the default for any self-employed scenario.
• What does the credit team look for first?
  Security, sponsor, exit, in that order. Is the security real, recoverable and properly valued. Is the sponsor capable of delivering the transaction. Is the exit documented, evidently feasible inside the loan term, and stress-tested for slippage.
• How are scenarios that need restructuring handled?
  Credit will outline the constraint and the structural change that would make the file workable (different LVR, additional security, longer term, second mortgage instead of first, etc.). The broker can take that back to the borrower and re-submit if the structure is acceptable.