Short term private lenders in Australia: fast, property-secured funding

Short term private lenders fund deals the banks cannot move on in time. They are private credit funds and private lenders who lend against property for a few weeks to a couple of years, secured by a first mortgage, a second mortgage, or a caveat. You pay more than a bank charges. In return you get speed, flexibility, and a yes on a deal a bank would either decline or take too long to reach.

Windsor Finance is a finance broker, not a lender. We hold no capital and approve nothing. We take your deal to a panel of Australian private and non-bank lenders, then place it with the one that fits on speed, security position, and your exit.

This page is part of our private lender finance hub. Read on to see when short term private lending is the right tool, what it costs, and how a broker gets you the right private lender first time.

What short term private lending actually is. Short term private money is property-secured funding from private credit funds and private lenders, not from a bank’s balance sheet. The defining features are speed and flexibility, not the lowest rate. Loan sizes run from around $50,000 to $20m and beyond. Terms are short: 1 to 24 months, often with interest prepaid or capitalised rather than paid monthly. Security can sit in three positions. A first mortgage gives the lender top priority. A second mortgage sits behind your existing lender. A caveat sits over your interest in the property as a lighter, faster form of security. Speed is the reason most borrowers are here. Indicative terms come back inside 24 hours. Where the security and exit are clean, settlement can land in 3 to 10 business days. That is the fastest funding on our panel. One point matters before you read further. Short term private and caveat lending is overwhelmingly business-purpose lending. We arrange it for business and investment purposes, evidenced by a signed business-purpose declaration. More on the regulatory framing below.

When a short term private lender is the right call. Short term private money is a tool for a specific job. It is the right tool when the cost of not having the funds is higher than the cost of the loan itself. It fits when a deal is on a deadline a bank cannot hit. An unconditional auction contract with a 30 to 42 day settlement leaves no room for a slow assessment. A purchase that has to settle because your own sale fell through needs funds now, not in six weeks. It fits when the file is non-standard. A prior default, a tax debt, lumpy self-employed income, or an unusual security can close the bank door. Private lenders price on the security and the exit rather than the credit score, so a workable deal with a clear way out still gets funded. It fits when you need cash against property fast for a business reason. Paying a time-critical tax bill, funding short-term business cash flow, or completing a deal a bank could not fund in time are all common cases. The loan is a bridge to a longer-term facility or a sale, not a permanent arrangement. It is not the right tool when you actually want a long-dated mortgage at the cheapest possible rate. That is a different product. Run the numbers on the real holding period before you judge the rate.

What short term private lending costs in Australia. Private money is the most expensive funding on the panel, and for a reason. Indicative pricing runs commonly 9% to 18% per annum, or quoted as a monthly rate, plus establishment fees. The cleaner the security and the exit, the lower the rate the lender will price. Read that rate against the actual term, not in isolation. Short term private lending is held for weeks or months. A facility held for two months costs roughly a sixth of its annual rate in interest. Weigh that real cost against what you lose without the funds: the deposit, the deal, or a fire-sale price on a forced exit. Most short term private lending carries an establishment fee, and interest is often prepaid or capitalised into the advance rather than paid monthly. That keeps your cash free during the term and is repaid when the loan clears. Every figure here is indicative. The lender confirms the final position on application once it sees the security and your file. Every cost is disclosed in writing, up front, before you commit.

How a broker gets you the right private lender first time. The private lending market is fragmented. Private credit funds and private lenders each have their own appetite for security position, property type, loan size, and exit. Going direct to one of them gives you one view, and no way to know whether the terms are competitive or whether a better-fitting lender exists. Windsor holds no balance sheet, so we have no reason to push one lender over another. One enquiry reaches private credit funds and non-bank lenders across the panel. You see real choice on rate, fees, security position, and term instead of a single offer. Because we are paid on a deal that settles, indicative structuring and lender shortlisting cost you nothing. Every cost is disclosed in writing, up front, before you commit. In practice, the value is in the match and the packaging. We choose the private lender whose appetite fits your security and exit, so you are priced as a clean deal rather than an awkward one. We package the file so credit sees a complete case and can move at the speed private lending is known for. And we hold the timetable on a tight settlement so the deal does not slip.

The regulatory position you need to understand. This part is load-bearing, so we state it plainly. Short term private and caveat lending is overwhelmingly business-purpose lending. Business-purpose credit, meaning lending wholly or predominantly for business or investment purposes other than residential property investment by an individual, is generally not regulated under the National Consumer Credit Protection Act 2009 (NCCP Act). A signed business-purpose declaration is the standard evidence. Consumer credit is different. Where credit is provided wholly or predominantly for personal, domestic, or household purposes, the NCCP Act applies, responsible lending obligations apply, and the lender verifies accordingly. We will tell you which category your deal sits in before anything is submitted, and we do not blur the two. Windsor Finance is a finance broker. We arrange the finance. The lender approves and lends. We do not give personal credit, tax, or superannuation advice. The purpose of each deal is confirmed in writing before it proceeds.