Private lenders move quickly — that is the entire value proposition. But speed requires clarity. The better you present your deal, the faster a private lender can assess it and provide a decision. Poorly prepared submissions create delays, requests for additional information, and sometimes outright declines that could have been avoided with better upfront presentation.
Whether you are a borrower approaching a private lender directly or a broker submitting a deal on a client's behalf, this guide outlines what private lenders in Australia need to see and how to structure your submission for the best possible outcome.
What Private Lenders Care About
Private lenders assess deals differently from banks. While banks focus heavily on income verification, credit scoring, and policy compliance, private lenders concentrate on three core elements:
- The security: What is the property, where is it, and what is it worth?
- The loan-to-value ratio: How much are you borrowing relative to the property's value?
- The exit strategy: How will the loan be repaid within the agreed term?
Everything in your submission should be organised around these three pillars. If a private lender can quickly understand the security, the LVR, and the exit, you are most of the way to an approval.
Essential Information for Your Submission
The Security Property
Provide as much detail as possible about the property being offered as security:
- Full address and title details
- Property type (commercial, industrial, retail, residential investment, land)
- Current use and condition
- Any existing tenancies, including lease terms and rental income
- Recent valuation or sales evidence supporting your stated value
- Photographs of the property — exterior and interior where possible
- Zoning information and any development potential
The more a lender can understand about the asset without asking follow-up questions, the faster the assessment proceeds.
The Loan Request
Be specific about what you need:
- Loan amount requested
- Purpose of the loan (acquisition, refinance, equity release, project funding)
- Desired term
- Settlement timeline — when do you need funds?
- Any existing encumbrances on the property (first mortgage, caveats, charges)
At Esteb Capital, we provide first mortgage lending from 10% for business and commercial purposes. Our minimum terms are 6 to 12 months, structured as interest-only. If your request falls within these parameters, state it clearly. If it does not, explain what you need and why.
The Exit Strategy
This is where many submissions fall short. A private lender will not fund a deal without a credible exit. Your submission should clearly articulate:
- How the loan will be repaid (refinance to a bank, sale of the property, sale of another asset, cash from operations)
- What steps are required to execute the exit (e.g., completing renovations, lodging tax returns, obtaining a valuation)
- The realistic timeline for the exit
- Any evidence supporting the exit — such as a pre-approval from a bank, a listing agreement, or a letter from your accountant
A strong exit strategy is often the deciding factor. Private lenders lend against the security, but they are repaid through the exit. Show that you have thought it through.
Borrower Information
While private lenders are primarily asset-focused, they still need to understand who they are lending to:
- Borrowing entity details (company, trust, individual)
- Director and guarantor identification
- Brief background on the borrower's experience and track record
- Disclosure of any credit issues, defaults, or legal proceedings
Transparency matters. Private lenders are experienced enough to work with borrowers who have imperfect histories — but they need honesty upfront. Undisclosed issues that surface during due diligence erode trust and can derail a deal that was otherwise approvable.
Presentation Tips That Make a Difference
Lead with the Summary
Start your submission with a one-page summary: the property, the amount, the LVR, the purpose, the exit, and the timeline. Busy credit assessors will thank you for getting to the point quickly. Detailed supporting documents can follow.
Be Honest About Challenges
If there is something unusual about the deal — a low-quality tenant, a property in a regional area, a borrower with a past bankruptcy — address it directly in your submission. Explain why it does not affect the viability of the loan. Trying to hide issues only delays the process and damages credibility.
Provide Comparable Evidence
If you believe the property is worth a certain amount, support it with recent comparable sales in the area. Private lenders will arrange their own valuation, but giving them context upfront helps them assess the deal more quickly.
Specify All Costs
Remember that in private lending, all legal costs are paid by the borrower. If you are presenting a deal to a client as a broker, make sure the borrower understands the full cost structure — including establishment fees, legal fees, valuation fees, and discharge costs. A well-informed borrower is less likely to stall at settlement.
Common Mistakes to Avoid
- Vague exit strategies: "I'll refinance to a bank" is not enough. Which bank? On what basis? When?
- Missing property information: If the lender has to search for basic details about the security, your submission goes to the bottom of the pile.
- Overstating property values: Private lenders see hundreds of deals. Inflated values are obvious and immediately reduce confidence in the submission.
- Submitting too late: If you need to settle in three days, say so from the first conversation. Do not submit a deal on Tuesday expecting funds on Friday without flagging the urgency.
Working with Esteb Capital
At Esteb Capital, we work with borrowers and brokers across Australia to fund commercial and business-purpose deals secured by first mortgage. We value clear, complete submissions because they allow us to move at the speed our clients need. If you have a deal to present, start with the security, the LVR, and the exit — and we will take it from there.