What a private business loan is
A private business loan is a loan from a non-bank lender, secured by property, used for a business purpose and repaid over a short term. Equity Tap is an independent private business lender: we lend our own money, we make our own decisions and we don't pass your file to anyone else.
Equity Tap lends from $50k to $5m for one to twelve months, secured by a first or second mortgage or caveat over Australian residential or commercial property. The security can be your home, an investment property, a factory, a shop or vacant land, as long as it is in Australia and has equity.
Who a private business loan suits
Our borrowers are business owners with property equity and a clear way to repay, who need money faster or more flexibly than a bank allows. Common situations include:
- A tax bill, payroll or supplier deadline that lands before customer payments arrive.
- A business purchase, stock buy or contract that needs funding this week, not next quarter.
- Expensive daily or weekly repayment loans that are choking cash flow and need clearing (see business debt consolidation loans).
- A property settlement about to fall over (see urgent property settlement loans).
- A decline from a bank or a cash flow lender, or credit history that rules out mainstream lending.
- A private or bridging loan that is expiring and the current lender won't extend (see refinance an expiring private loan).
How we compare to banks and cash flow lenders
Every type of lender has a place. The question is which one fits the problem in front of you right now.
| Bank | Cash flow lender | Equity Tap private loan | |
|---|---|---|---|
| Typical decision time | Weeks; a refinance commonly takes up to three months or more | Fast, but limited by your turnover | Conditional approval often on the phone, term sheet in about 30 minutes |
| What they assess | Years of financials, credit history, serviceability | Bank statements and turnover | Property security, purpose and exit |
| How much you can borrow | May not approve the amount you need | Often capped well below what you need | $50k to $5m depending on equity |
| Repayments | Principal and interest over decades | Daily or weekly debits | Interest only, or up to six months prepaid or added |
| Valuation | Usually required | Not applicable | No valuation ordered before approval |
| Bad credit or ATO debt | Usually a decline | Often a decline | Not automatically a problem |
A bank is the cheapest money for a business that can wait and fits the policy. A cash flow lender is quick for small amounts against turnover, but the daily debits can strangle a business. A private business loan sits between the two: fast and flexible like a cash flow lender, secured and larger like a bank, and built for a short term. For a fuller comparison, read private lender vs bank.
What we don't need
For a property-secured loan we don't need tax returns, BAS, profit and loss statements, an accountant's letter or bank statements. We don't order a valuation before approval, so you won't lose a morning meeting a valuer at the property. There is no credit check at initial assessment, although one may be made before funding.
What we do need is simple: ID, details of the property and any existing mortgage, what the money is for, and evidence of how you will repay it. That is the whole reason we can move fast. Our low doc business loans page covers this in more detail.
How it runs, from first call to funds
- The call. You or your broker tell us the amount, the purpose, the property and the exit. Often the person you speak to can make the decision.
- Conditional approval. If the scenario works, we can usually give a conditional answer on the phone and issue a term sheet in about 30 minutes.
- Documents. We collect ID, property and mortgage details and exit evidence, and confirm the full cost in writing.
- Settlement. Loan documents are signed and the mortgage or caveat is registered. Eligible loans can settle in as little as 24 hours.
- Repayment. At the end of the term, or earlier, the loan is repaid from your exit: a refinance, business cash flow, a sale, receivables or another source we agreed at the start.
The exit matters most
Because our loans are short-term, the most important question we ask is how the loan will be repaid. Good exits include a bank refinance that is already under way, settlement of a property sale, the sale of a business, equipment or stock, receivables from a contract, an insurance payout or the normal cash flow of the business. Our business loan exit strategy guide explains what a strong exit looks like.
Pricing
Each loan is priced on the client's individual circumstances, aiming for the sharpest rate available for that situation. The full cost is shown before you proceed, so there are no surprises at settlement.
Brokers
If you are a broker with a client the bank can't help in time, send the scenario through our broker page. You deal with the same lending team and get a fast indicative answer so you keep the client.
Get started
Equity Tap is regarded as one of Australia's best independent private business lenders because we answer the phone, make decisions and settle quickly. Apply online or call 1300 123 024 to talk through your scenario.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
What is the difference between a private business loan and a bank loan?
How much can I borrow with a private business loan?
Can I use my home as security for a business loan?
Do I need financials for a private business loan?
How long can I have a private business loan for?
I was declined by a cash flow lender. Can you help?
Will you check my credit?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.