One of the biggest advantages of private lending over traditional bank finance is speed. Where a bank might take weeks to process an application, private lenders can often assess and approve a deal in as little as 48 hours. But speed is not guaranteed — it depends on how well-prepared the borrower is and how clearly the deal is presented. Here is how to give yourself the best chance of a rapid approval.
Why 48-Hour Approvals Are Possible
Private lenders can move quickly because their assessment process is fundamentally different from a bank's. Banks rely on comprehensive income verification, credit scoring algorithms, and multi-layered internal approval processes. Private lenders focus primarily on three things:
- The quality and value of the security property
- The viability of the exit strategy
- The commercial sense of the deal overall
Because the assessment is asset-focused rather than income-focused, there is less documentation to review and fewer internal hurdles to clear. A well-presented deal with strong security and a clear exit can genuinely be assessed within hours, with formal approval following within one to two business days.
Step 1: Know What You Need Before You Call
The first step to a fast approval is having a clear picture of your own requirements before you approach a lender. Before making contact, you should be able to answer these questions:
- How much do you need to borrow?
- What is the purpose of the loan?
- What property are you offering as security, and what is it approximately worth?
- Is the property currently mortgaged, and if so, what is the outstanding balance?
- How long do you need the loan for?
- How will you repay the loan at the end of the term?
A borrower who can answer all of these questions clearly in the first conversation makes the lender's job significantly easier — and speeds up the entire process.
Step 2: Prepare Your Documentation
While private lenders require less documentation than banks, they still need enough information to make an informed decision. Having these documents ready before you apply will eliminate unnecessary delays:
Essential Documents
- Security property details: The address, title reference, and any recent valuation or sales evidence you have. If you are purchasing a property, include the contract of sale.
- Existing mortgage details: If there is a current mortgage on the property, provide the most recent loan statement showing the outstanding balance.
- Borrower identification: Company extracts, trust deeds, or identification documents for the borrowing entity and its directors or trustees.
- Exit strategy documentation: Evidence supporting your repayment plan. This might include a pre-approval letter from a bank (if your exit is refinancing), a listing agreement (if your exit is property sale), or project feasibility documentation (if your exit is development completion and sale).
Supporting Documents
- A brief summary of the transaction — one page is usually sufficient
- Any relevant planning permits, contracts, or agreements related to the deal
- Recent financial statements if available (not always required but can strengthen the application)
Step 3: Present a Clear Exit Strategy
If there is one thing that separates fast approvals from slow ones, it is the clarity of the exit strategy. Private lenders are short-term lenders by nature — they need to know how and when they will be repaid. The stronger and more clearly documented your exit strategy is, the faster a lender can get comfortable with the deal.
Strong exit strategies include:
- Bank refinance: You have a conditional approval from a bank and the private loan is bridging the gap until the bank facility settles. Provide the bank's letter of offer or conditional approval.
- Property sale: The security property (or another asset) will be sold within the loan term. Provide evidence of market value and, ideally, a listing agreement or expressions of interest.
- Development completion: You are completing a development project and will repay from settlement of pre-sold or completed units. Provide pre-sale contracts, feasibility studies, or quantity surveyor reports.
- Pending settlement: You are expecting proceeds from another transaction that will cover the loan repayment. Provide contracts or evidence of the pending transaction.
Weak or vague exit strategies — "I will sort something out" or "the market will improve" — will slow down or derail your application entirely. Every deal funded by Esteb Capital requires a defined exit strategy, and this is a standard requirement across the responsible private lending market in Australia.
Step 4: Work with the Right Lender
Not all private lenders operate at the same speed. Some have complicated internal processes that slow things down despite their private lending label. When choosing a lender for a time-sensitive deal, look for:
- Direct decision-makers: Lenders where you can speak directly to the person assessing and approving the deal, rather than going through multiple intermediaries.
- Clear communication: A lender who tells you early whether the deal fits their criteria, rather than stringing you along for days before declining.
- Established legal panel: Lenders with experienced solicitors who handle private lending transactions regularly can prepare documentation much faster than generalist lawyers.
- Australia-wide capability: If your security property is outside a major capital city, ensure the lender is comfortable lending in that location. Some private lenders are restricted to specific metro areas.
Step 5: Be Responsive
The 48-hour clock only runs when both parties are moving. If a lender asks for additional information and the borrower takes three days to respond, the timeline stretches accordingly. During the assessment period:
- Respond to information requests the same day
- Make yourself available for phone calls to clarify deal details
- Have your solicitor on standby to review and execute loan documents promptly
- Ensure your identification and entity documentation is current and accessible
What Happens After Approval
Once a private loan is approved, the lender will issue a letter of offer outlining the terms, rate, fees, and conditions. After the borrower accepts, the lender's solicitor prepares the loan and mortgage documents. The borrower's solicitor reviews these, both parties sign, and the loan can settle.
For straightforward deals with responsive solicitors on both sides, the period from approval to settlement can be as short as two to three business days. More complex deals with multiple securities or additional conditions may take a few days longer.
Getting Started
If you have a commercial deal that needs fast funding, preparation is your greatest asset. Gather your documentation, articulate your exit strategy, and approach a lender who can move at your pace.
Esteb Capital offers first mortgage lending from 10% for business and commercial purposes across Australia, with interest-only terms starting from six months. We aim to provide initial deal assessments within hours and can move to formal approval within 48 hours for well-prepared applications. Contact us with your deal summary and we will give you a straight answer quickly.