What private lenders in Australia actually require
An Australian private lender needs four things to assess a business loan application: an active ABN, a genuine business or investment purpose, real property carrying sufficient equity, and a credible exit. HomeSec does not require financial statements, tax returns, BAS lodgement to be current, a minimum trading history or a clean credit file.
Most people call us after a bank has spent six weeks asking for documents. So the first question is usually a defensive one: what are you going to want from me?
Four things. That is the whole list.
1. An active ABN
You are borrowing as a business, so there has to be a business. An active ABN is the evidence of that. We do not require a minimum trading period — a company registered last month qualifies on the same terms as one registered in 1998.
2. A genuine business or investment purpose
We lend wholly and exclusively for business and investment purposes. That is not a formality. Credit provided for personal, domestic or household purposes is regulated differently, and we do not write it.
So we will ask what the money is for, and we will record the answer. It takes an extra few minutes on the first call. ASIC’s Deputy Chair put the reason plainly when the Federal Court made findings against another lender in 2025: relying on a borrower’s declaration without making reasonable enquiries is not good enough. If a lender does not ask you this question properly, that is information about the lender.
3. Real property with enough equity
Australian real property in your name, your company’s or your trust’s — residential, commercial, industrial, rural residential or vacant land. We take first or second position on the title.
The arithmetic is simple. Take the property’s value, multiply by the applicable ceiling, subtract what is already owed:
| Security | Ceiling | Example value | Owing | Roughly available |
|---|---|---|---|---|
| Residential | 80% | $1,250,000 | $690,000 | $310,000 |
| Commercial | 70% | $3,000,000 | $900,000 | $1,200,000 |
We assess value on our own view of the security. A sworn valuation is not required, which removes both a cost and a week from the process.
4. A credible exit
This is the part we assess hardest, because it is the part that determines whether the loan works for you rather than against you.
An exit is dated and documented: a signed contract of sale, a formal letter of offer from an incoming lender, a certified progress claim, a receivable with a due date. “The property should sell in the new year” is a hope, and we will say so.
What we do not need
This is usually the more useful list:
- Financial statements. Not required. Not for $50,000, not for $2 million.
- Tax returns or BAS. Not required, and they do not need to be up to date.
- Cash flow records or bank statements. Not required at all.
- A trading history. No minimum period. We fund start-ups.
- A clean credit file. Credit history is considered and is never disqualifying on its own. Defaults, arrears, judgments and an outstanding ATO debt do not automatically rule you out.
- A sworn valuation. Never required.
- A credit check to get an indicative answer. We can tell you on the phone whether the deal works. A credit file is accessed later, with your consent, as part of formal approval.
What happens on the first call
Tell us the amount, the purpose, what property is available and roughly what is owed on it. That is enough for a Lending Manager to tell you whether it works, what instrument fits — a caveat, a registered second mortgage or bridging — and what it will cost.
If it works, a Letter of Offer follows within about two business hours, with the real number on it, before you have paid anything or committed to anything.
Reviewed by Catriona Anderson, General Manager