First Mortgages
First Mortgage loans are property loans which are generally for a period of between 1 to 36 Months. They are asset based loans and are secured against real estate (usually a house, commercial property or residential or industrial land) In the case of mortgages, or loans secured against property, ‘first’ refers to priority. First Mortgage loans also allow you to get cash/equity out of real estate that you already own by refinancing for business purpose use.
First Mortgage loan amounts start at $20,000
For First Mortgages the Maximum LVR is usually in the 65 - 75% range. The loan term is usually 1 - 36 months.
SECOND MORTGAGES/CAVEAT LOANS
A Second Mortgage is a loan secured against a property that already has a First Mortgage attached to it. You will still have your original lender on the title of your property and the second mortgage ranks after this.
Caveat Loans are fast settling loans which are structured for a short period. Unlike normal forms of funding these loans can be settled quickly and the lender is entitled to lodge a caveat against the title of the real property as security.
Loan Amounts for Caveat Loans or Second Mortgages start at $10,000
For our Caveat Loan or Second Mortgage products the Maximum LVR is Usually 70 - 75% but on a case by case basis some lenders will accept 80% LVR. The loan term is usually between 1 -36 months.
BRIDGING FINANCE
A bridging loan acts to create a ‘bridge’ between buying a new property and selling your existing one. How a bridging loan works may differ slightly depending on your situation. You don’t have to sell first and bridging loans provide you with a fast funding option to provide a financial buffer so that you don’t have to rush the settlement of your current property.
Lenders generally work out the size of the loan by adding the value of your new property to your existing mortgage then subtracting the likely sale price of your existing property. This generally requires a valuation by the lender who takes both properties as security. What you’re left with is your end debt which represents the principal of your bridging loan.
Loan Amounts for Bridging Loans start at around $50,000 and can go up to $10 Mill and the LVR is usually 75% to 80%. Typically, these loans are provided on an interest-only basis for terms of up to 12 month with flexible repayment options. The option of no repayments until maturity may also be available in some circumstances.
COMMERCIAL PROPERTY LOANS
A Commercial Loan uses commercial property or land as security for the amount being borrowed. Most commonly commercial loans are used to buy commercial or industrial property, fund business operations or to acquire business equipment.
Commercial Property Loans can be used to purchase retail, office and industrial property for investors and owner occupiers. We can also assist with Development Financing for retail and industrial/Factory units.
The Max LVR is usually 75% but we have lenders that will go up to 80% on a case by case basis. We can also assist with refinancing at competitive interest rates and terms. Loan size starts from $20,000 to $50 million
Commercial Private Loans come with less scrutiny and can also be facilitated and require less paperwork and can be settled quickly.
Commercial Property Loans can be used to acquire ----
- Office Buildings
- Shopping Centres
- Factories / Industrial
- Retail Shops
- Warehouses
- Commercial / Industrial Land
- Development Sites
DEVELOPMENT & CONSTRUCTION FINANCE
PrivateLending.com.au can assist with Development Funding by sourcing both traditional finance as well as private construction funding. The most commonly used method for projects is Gross Realisable Value Funding (GRV Funding) where the mortgage facilities look at the projected end value of the project and will extend funding to a percentage of that. The maximum GRV is usually 65% but can sometimes stretch to 70%. This type of facility is designed to reduce the borrowers investment in the project. PrivateLending.com.au has access to non-bank and private lenders that do not normally require pre sales and can look at a project from a different angle than the major banks.
The other approach to financing is using the traditional hard cost or total development cost (TDC) method. which is simply the total cost of your property development project. Some lenders may also be prepared to lend up to a higher % of the TDC than others ( between 80-90% ). The higher the TDC % means you need less equity or deposit for your project.
Construction or Development funding is used by developers to build or construct their development project. This process may also include refinancing any existing debt on the land as part of the funding process. Construction finance can be used for the following scenarios --
- Townhouse Developments
- Apartment Developments
- Unit Developments
- Mixed used Projects
- Commercial Projects
UNSECURED BUSINESS LOANS
An unsecured business loan is a loan that requires no collateral and utilises a financial product that lends against the cash flow of your business.
HOW QUICKLY CAN I RECEIVE FUNDING ?
Funding can be as quick as 1 to 2 business days but is dependent on how quickly all supporting documentation and information is provided when requested.
DO I HAVE TO PROVIDE SECURITY FOR THE LOAN ?
For our Caveat Loan or Second Mortgage products the Maximum LVR is Usually 70 - 75% but on a case by case basis some lenders will accept 80% LVR. The loan term is usually between 1 -36 months.
DO I HAVE TO PROVIDE SECURITY FOR THE LOAN ?
No Collateral or Security is required and your application is assessed on your revenue. Loan approvals to small businesses are based on business fundamentals like cash flow, not based on the value of business assets.
HOW DOES THE REPAYMENT PROCESS WORK ?
For Ease, Automatic Daily or Weekly Fixed payments are set up so there are no large end of month due dates.
WHAT IS THE MINIMUM QUALIFYING CRITERIA FOR AN UNSECURED BUSINESS LOAN ?
Your business should be trading for at least 6 months and have minimum turnover/sales of $5000 per month.
WHAT DOCUMENTATION IS REQUIRED FOR THE LOAN ?
For loans of 50k or less we usually require a Completed loan application, Drivers Licence and 3-6 months business bank statements.
For loans over 50k to 600k we usually require a Completed loan application, Drivers Licence and 3-12 months business bank statements and recent P and L Financials and Current Receivables etc.
WHAT IS THE TERM OF THE LOAN ?
The term of the loan is usually between 3 and 24 months.
WHAT IS THE INTEREST RATE ON THE LOAN ?
The cost of the loan is determined during the credit assessment after which you will be advised of how much you can borrow, repayments, any fees and interest. The interest rate for an unsecured business loan depends on the strength of the business, the experience of the owner, and the business's operating cash flow.
Whether you’re a business owner, investor or property developer you need to move fast in today’s market. By dealing with privatelending.com.au you’ll have the confidence to commit and the means to act quickly so you don’t miss the opportunity presented to you. Call us on 1300 100 500 or use our Express Enquiry Form.
