Two very different ways of saying yes
When a bank assesses a business loan, your application moves through a process designed for consistency and caution. A lender, an analyst, a credit department, sometimes a valuer and a committee. Each step checks a policy. If you fit every box, you get a long-term loan at a bank rate. If you don't, or if you need the money before the process ends, you don't.
When Equity Tap assesses a business loan, you talk to people who have run businesses themselves. We are business owners lending to business owners. There is no credit committee: the person who answers the phone is often the person who makes the decision. We look at the property, the purpose and the exit, and we can often give a conditional answer on the call.
Side by side
| Bank | Equity Tap, independent private lender | |
|---|---|---|
| Who decides | A credit department or committee you never meet | Often the person you speak to on the phone |
| Time to decision | Days to weeks | Conditional approval often on the phone, term sheet in about 30 minutes |
| Time to funds | A refinance commonly takes up to three months or more | As little as 24 hours for eligible loans |
| Financials | Usually years of tax returns, BAS and statements | Not needed for property-secured loans |
| Valuation | Usually required | None ordered before approval |
| Credit history | Checked early; defaults often mean decline | No credit check at initial assessment; bad credit not automatically a problem |
| ATO debt | Often a decline | Not automatically a problem |
| Term | Long term, often decades | One to twelve months |
| Repayments | Principal and interest | Interest only, or up to six months prepaid or added |
| Complex scenarios | Usually outside policy | Our specialty |
| Cost | Usually the lowest rate for long-term money | Priced on your circumstances, for short-term use |
When a bank is the right answer
We will say it plainly: if you have clean financials, good credit, a business that services the loan comfortably and time to wait, a bank is usually the cheapest long-term money. Long-term needs, like owning your premises for the next 20 years, belong with long-term lenders.
When a private lender is the right answer
- Time is short. A settlement, tax deadline or opportunity won't wait three months.
- The paperwork isn't ready. Tax returns behind, a loss year or a new structure.
- Your credit has marks on it. Defaults, an ATO debt or a past decline.
- The need is temporary. You will repay from a sale, receivables or a refinance in months, not decades. See why short-term business loans.
- The bank won't lend enough. The bank may approve part of what you need, but not the full amount.
- The scenario is complex. Multiple properties, trusts, partnerships, a business purchase, or debts to consolidate.
Using both
Private lending and bank lending often work together. Many of our borrowers take an Equity Tap loan to get the money now, sort out what the bank needs, and then refinance to the bank and repay us. The bank refinance becomes the exit. Our second mortgage vs refinancing page shows how a second mortgage lets you keep your existing bank loan untouched while you do this.
Why business owners understand business owners
We are not bank people. Our team comes from business backgrounds, and we have been lending to business owners for a long time. We know a slow BAS usually means a busy owner, that a bad year can follow a good decade, and that the best opportunities rarely arrive with three months' notice. That understanding is why we can say yes to scenarios a policy manual can't.
An example
For example, a business owner buying a competitor needs funds in two weeks to beat another buyer. The bank is interested but wants two years of financials for both businesses and a valuation of the owner's home, and estimates eight to twelve weeks. A short-term private loan secured over the home settles the purchase on time. Once the bank has what it needs, it refinances the combined business and the private loan is repaid. Read more in buying a business with fast finance.
What we need
- ID for borrowers and guarantors.
- The security property and existing mortgage details.
- The purpose of the loan.
- Evidence of how you will repay.
Loan basics
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. 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 you proceed. To choose well between lenders, read how to choose a private business lender and see why we call ourselves an independent private business lender.
Talk to a person who decides
Call 1300 123 024 or apply online. Brokers can send scenarios through our broker page.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
Is a private lender better than a bank?
Why is a private lender faster than a bank?
Will a private lender look at my credit history?
Can I move from a private loan to a bank loan later?
Do I have to give up my bank home loan to use a private lender?
Are private lenders more expensive than banks?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.