What makes a scenario work for us
We look at three things before anything else: the property security, the purpose, and the exit. If a client owns residential or commercial property in Australia with enough equity, needs between $50k and $5m for a business purpose, and can show how the loan will be repaid within one to twelve months, we want to hear about it.
What we don't need is just as important for brokers. We don't order a valuation before approval. We don't need tax returns, BAS, profit and loss, an accountant's letter or bank statements for a property-secured loan. There's no credit check at initial assessment, and bad credit history, defaults, ATO debt or a past decline are not automatically a problem.
The scenario table
These are typical structures, not fixed rules. Every deal is assessed on its own facts, and the security can be a first mortgage, second mortgage or caveat depending on what sits on the title today.
| Client scenario | Usual structure | Typical exit |
|---|---|---|
| Bank refinance approved in principle but taking months | Second mortgage behind the existing lender | Bank refinance settles |
| Bank declined on serviceability | Second mortgage or first mortgage | Refinance once trading figures improve, or asset sale |
| ATO debt with a payment deadline | Second mortgage or caveat | Refinance or business cash flow |
| Garnishee notice on the business account | Caveat for speed, then second mortgage if needed | Refinance or receivables |
| Property sold, settlement months away | Second mortgage or caveat over the sold property | Settlement of the property sale |
| Commercial property purchase, settlement date at risk | Short-term first mortgage | Bank refinance after settlement |
| Business purchase needs deposit or balance now | Second mortgage over the buyer's property | Refinance or business cash flow |
| Supplier or trade creditor demanding payment | Caveat or second mortgage | Receivables or business cash flow |
| Large contract won, needs working capital to start | Second mortgage | Contract progress payments |
| Stock purchase ahead of peak season | Second mortgage or caveat | Sale of stock |
| Equipment needed before finance company approval | Second mortgage | Equipment finance or cash flow |
| Existing private loan expiring | First mortgage refinance | Bank refinance or property sale |
| Existing first mortgage in default or arrears | First mortgage refinance | Refinance or property sale |
| Client declined by a cash flow lender | Second mortgage | Business cash flow or refinance |
| Several expensive cash flow loans to clear | Second mortgage consolidating the debts | Refinance once the business stabilises |
| Recent default or court judgment on file | Second mortgage or first mortgage | Refinance or asset sale |
| Insurance claim approved, payout delayed | Caveat or second mortgage | Insurance payout |
| Business being sold, owner needs funds before completion | Second mortgage | Sale of the business |
| Partner buyout needs funding quickly | Second mortgage | Refinance or business cash flow |
| Builder or developer waiting on a progress claim | Caveat or second mortgage | Progress payment or completion |
| Self-employed with financials not yet lodged | Second mortgage or first mortgage | Refinance once financials are lodged |
| Equity in a family home, cash needed in the business | Second mortgage over the home | Refinance, cash flow or sale |
| Payroll or wages shortfall | Caveat for speed | Receivables or business cash flow |
| Commercial property equity release | First or second mortgage | Refinance or sale of the property |
How to read the table
Second mortgage is the most common structure for broker clients because it leaves the existing first mortgage in place. If you wrote that first mortgage, it stays on your book. The first lender's consent may be needed. See second mortgage for broker clients.
Caveat is used when speed matters most and the funding need is short. It can often be put in place quickly. The trade-offs are covered in our guide to caveat loans vs second mortgages and on caveat and bridging for broker clients.
First mortgage applies when there is no existing debt on the property, when we are refinancing an existing lender out, or when the client is buying. See first mortgage business loans.
Scenarios that need more thought
Some deals are harder, and we will tell you quickly if one doesn't fit. The common sticking points are an exit that depends on something with no clear timeline, a purpose that is personal rather than business, and equity that is too thin once existing debt is taken into account. A quick call usually sorts out whether there's a path. We would rather give you a fast no than a slow maybe, so you can move on for your client.
Why the exit matters so much
A short-term loan should be taken for the time it's needed. If the bank refinance will take two months, the client takes the loan for two months. Our job is to bridge to a known outcome, and the clearer that outcome is, the faster we can say yes. Helpful exit evidence includes a bank approval or application, a contract of sale, a contract for the sale of the business, an insurance claim acceptance, invoices or a contract schedule. More on this in our exit strategy guide.
Bring us the scenario
If your client's situation looks like any row in the table, or something close to it, call 1300 123 024 or start through apply. Each loan is priced on the client's individual circumstances, aiming for the sharpest rate available for that situation, with the full cost shown before proceeding. For what to send, use our scenario checklist.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
Can you fund a deal the bank has already declined?
What's the most common structure you use for broker clients?
Do you fund commercial property as security?
Can my client use the loan to pay the ATO?
Is there a minimum or maximum loan?
What if the exit is uncertain?
Do you fund personal or household purposes?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.