Business loans

Urgent finance

Short-term funding, arranged at business speed.

Who this is for

Business owners who need funding on a settlement clock: stock to buy, tax to clear, an opportunity that will not wait for a bank's six-week process.

The situations repeat. A settlement date that has moved and a deposit that has to be found. A supplier offering a discount for volume that only works if you can pay now. An ATO deadline. A property purchased at auction with a short settlement. In each case the cost of the finance is smaller than the cost of missing the date, which is the only circumstance in which this kind of lending makes sense.

The three structures, and when each fits

No-doc loans provide short-term funding for terms up to 24 months without income verification. You still declare your position and the lender still lends against security, but there are no payslips or tax returns to assemble. Speed is the point.

Lite-doc loans use a self-certified income declaration supported by an accountant's letter, trading statements, or BAS. Slightly more paperwork, generally better pricing, and a good fit where you have a week rather than a day.

Second mortgages sit behind your existing first mortgage, so you can raise funds against equity quickly through a private lender without disturbing your current loan. That matters when your first mortgage is on a rate you do not want to lose or a fixed term you do not want to break. Your first mortgagee generally has to consent, which is a step worth starting early.

All three are priced monthly rather than annually, which is the convention in short-term lending and makes the numbers look smaller than they are. We convert them to an annual figure for you, because a rate quoted per month deserves to be read per year.

How the process runs

Days rather than weeks, where the security is clean and the exit is clear. That said, nothing here is instant, and anyone promising same-day settlement on a property security is describing an exception rather than a norm.

The deadline and the exit. What date has to be met, and what repays the loan. If the second answer is vague, that is the problem to solve before arranging finance.
Indicative terms. We take the security and the story to the private lenders whose appetite fits and come back with real pricing, usually within a day or two.
Valuation and consents. A valuation is ordered, and where it is a second mortgage the first mortgagee's consent is sought. This step is the usual source of delay.
The lender decides. If approved, terms are issued and documents follow. Private lenders generally require you to obtain independent legal advice before signing.
Settlement, then the exit. Funds are advanced. We stay involved on the exit, because a short-term loan that quietly becomes a long-term one is the failure mode of this product.

What to watch

Private funding is priced for speed, so the exit matters: a sale, a refinance, or receivables landing. We make sure the way out is as clear as the way in.

Read the rate carefully. Short-term facilities are quoted per month, so 1.45% per month is roughly 17.4% per year before fees, not 1.45%. That can still be the right answer against a deadline worth more than the interest, but it should be a decision made with the annual figure in front of you.

Default interest is the other trap. Many short-term contracts step the rate up sharply if the loan is not repaid on time, and extension is at the lender's discretion. Building in more time than you think you need costs far less than needing an extension you cannot get.

This lending is secured, often against property including your home. If the exit does not arrive, the security is what the lender looks to.

What nine months actually costs

Short-term rates are quoted per month, which makes them look smaller than they are. The figures below convert one typical second mortgage into the total it costs over its term. They are a worked illustration, not an offer, a quote, or a prediction of your result.

Amount borrowed: $150,000
Rate quoted: 1.45% per month
The same rate per year: 17.40% p.a.
Interest per month: $2,175
Term: 9 months
Interest over the term: $19,575
Establishment and legal costs: $3,000
Total cost of the facility: $22,575

Illustration only. Assumes interest charged monthly on a constant balance with no repayments of principal during the term, and estimated establishment and legal costs of $3,000. Excludes valuation fees, default interest and any minimum-term charge. Private lending is priced case by case and the rate shown is an example used to demonstrate the arithmetic, not a rate available to you or offered by any lender.

What it costs

Short-term money is expensive money. The components:

Interest, quoted monthly. Commonly expressed as a percentage per month. Multiply by twelve before comparing it with anything else.
Establishment or line fees, often a percentage of the loan and frequently deducted from the advance, so you receive less than the face amount.
Legal costs, both sides. Private lenders typically charge their legal costs to the borrower, in addition to your own independent advice.
Valuation fees, usually payable up front and often non-refundable.
Default interest, a substantially higher rate applying if the loan runs past its term.
Minimum terms. Some facilities charge a minimum number of months of interest even if you repay early, so repaying in month two may cost the same as month three.

Do I qualify

Income is assessed lightly or not at all. Almost everything rests on the other three factors:

Security. Usually real property with enough equity. Private lenders lend against the asset, so the share of its value being borrowed is the main question.
A defined exit. A property under contract, a refinance already in progress, or receivables with dates attached. Hope is not an exit and good lenders will not lend against it.
Business purpose. Most of this lending is for business or investment purposes rather than personal use, which changes which rules apply. We check that this is genuinely the case rather than simply recorded as such.
First mortgagee consent, where a second mortgage is involved. Not all first mortgagees will give it.
Independent legal advice, which most private lenders require before you sign.

Everything on this page is general information about how short-term and private lending facilities work in Australia. It does not take your objectives, financial situation or needs into account, and it is not a recommendation that you borrow.

Nothing here is an offer of credit. No rate, cost, timeframe or outcome described above is guaranteed. Any recommendation we make follows a full assessment of your circumstances, and approval, pricing and conditions are decided by the lender against its own criteria. Where a decision touches on tax, superannuation or estate matters, we work alongside your accountant, financial adviser or solicitor rather than in place of them.

Short-term private lending is expensive, is secured against property that may include your home, and generally applies a substantially higher rate if it is not repaid on time. Extensions are at the lender's discretion. These facilities are written for business or investment purposes and are not suitable for personal or domestic borrowing. Independent legal advice is normally required before you sign.

Common questions

How fast can urgent finance actually settle?

Days rather than weeks where the security is clean, the exit is documented and the paperwork arrives promptly. In practice the valuation and, for a second mortgage, the first mortgagee's consent are what set the pace, and neither is within our control. Anyone promising same-day settlement against property security is describing an exception. Starting the consent request early is the single most useful thing you can do.

What does no-doc actually mean?

It means the lender does not verify your income through payslips or tax returns. It does not mean no assessment and no paperwork: you still declare your position, the lender still values the security, and there are still contracts and legal advice. The trade for that speed is a higher rate, a lower share of the property value, and generally a shorter term.

Is a second mortgage risky?

It carries real risk, and it should be treated as a short-term tool. The lender sits behind your first mortgagee, so it prices for that position and typically enforces more quickly if the loan is not repaid on time. It also usually requires your first mortgagee to consent, which not all will give. It works well when the exit is close and certain, and badly when it is used to paper over an ongoing shortfall.

Why is the rate quoted per month?

It is the convention in short-term private lending, and it has the effect of making the number look small. A rate of 1.45% per month is about 17.4% per year before fees. We convert every quote to an annual figure so you can compare it properly, and we would encourage you to do the same with any offer you receive elsewhere.

What happens if I cannot repay on time?

Most short-term contracts apply a substantially higher default rate, and any extension is at the lender's discretion rather than something you are entitled to. This is why we push for a term with genuine slack in it rather than the shortest one that theoretically works. If the exit slips, tell us early: there is far more that can be arranged before a default than after one.

Can I use urgent finance for personal expenses?

Generally not. Most of these facilities are written for business or investment purposes, which places them outside the consumer credit rules and is part of why they can be arranged quickly. Documenting a personal-purpose loan as a business one is not something we will do. If the need is genuinely personal, a different product applies and we will point you there instead.

Talk this through with a broker

Send your details and we'll come back to you with what these numbers mean for your borrowing, usually within one business day.