Quick answer
A fast short-term private loan is a first or second mortgage, or a caveat, arranged in days rather than weeks. The lender looks at the property and the way out, not your credit score, financial records or a formal valuation, and will often lend in most towns and cities across Australia.
Key points
- Decided on the property and the exit, not on your credit score
- Usually no formal valuation and no financial statements up front
- Most towns and cities, not just the capitals
- Same day is possible for first mortgages when the title is clear
- Speed
- Same day possible for first mortgages
- Typical term
- A few weeks to about 24 months
- Loan size
- $20,000 to $5,000,000
- Looks at
- Property, equity and exit
What a fast short-term private loan is
Private business lending comes in two broad styles, and they behave very differently. The first is the fast, short-term loan covered here. It is a caveat loan, a second mortgage or a private first mortgage, arranged around a deadline. The second is a longer-term, cheaper loan that takes more paperwork and more time. Both are secured by property, and both can suit a business. They just suit different situations.
A fast short-term loan is built around a simple idea: if there is enough equity in a property and a believable way to repay, the lender does not need to read your whole financial life before it lends. It needs to understand the security, check the title, agree the exit and sign the documents. Everything else is optional.
What the lender looks at
The property. Where it is, what it is, who owns it and how easily it could be sold. A house in an established suburb is easy for a lender to assess. A regional commercial building is possible but may need a closer look.
The equity. How much is already owed against the property, and how much room that leaves. A lender who sits second wants a comfortable buffer between the total debt and the property’s value.
The exit. How the loan will be repaid, and when. A refinance, a sale or a contracted payment are all common. Read more about the exits lenders accept.
What it usually skips
Because the decision rests on the property, a short-term lender generally does not make the following the centre of the process:
- A formal valuation up front. The lender uses its own assessment first.
- Years of financial statements, tax returns or management accounts.
- A minimum credit score. A past default, a tax debt or a bank knock-back is a conversation rather than a refusal.
- A long list of conditions precedent, beyond clear title and signed documents.
That does not mean anything goes. The lender still checks title, still wants a sensible loan against the property and still expects to be repaid. It simply puts the weight on security and exit.
Where it works
Short-term private lenders will generally lend in most towns and cities across Australia, not only the capitals. That matters for businesses based in regional Queensland, rural New South Wales, the Hunter, the Riverina or a mining town, where a bank or a long-term lender may decline on location alone. If the property has a realistic buyer, a short-term lender can usually work with it. Our regional Queensland page covers how that plays out in practice.
When this path suits
- A tax bill, a statutory demand or a director penalty notice with a date on it.
- A property settlement that cannot slip.
- A supplier, contract or payroll that needs paying this week.
- A bank refusal that has left a gap before a refinance can be approved.
- A purchase that needs a deposit now and a bank loan later.
If any of those sound familiar, read the first 48 hours of an urgent private loan before you start, so the documents are ready when the lender asks.
The honest trade-offs
Speed and flexibility are not free. Per month, a short-term loan generally costs more than a longer-term one, and the establishment costs and minimum interest period matter more on a short deal. The right way to judge it is the full cost in dollars to your expected exit, set against what the delay would cost you. Our caveat loan calculator does that sum from the figures in your own offer.
Because the term is short, the lender will also look hard at your exit, so have the evidence ready. If the exit is a bank refinance, an indicative approval helps. If it is a sale, an agent’s appraisal helps.
Fast first mortgage or fast second mortgage?
Both can be quick. A first mortgage is usually possible same day when the title is clear and the documents are ready. A second mortgage sits behind your existing lender and is a smaller part of the total debt, which is why it is often the better choice when your existing loan is cheap. Our page on the blended cost of a second mortgage shows how that works.
Start with a short enquiry
Tell us the property, the amount, the deadline and the exit. The enquiry takes about a minute, there is no credit check when you first enquire, and your details go to a person on our desk rather than out to a list of lenders. Start your enquiry and we will tell you which structure fits, how fast it could move and what it would cost in dollars.
Frequently asked questions
What makes a private loan "fast"?
Fewer steps. The lender relies on its own assessment of the property rather than waiting on a formal valuation, does not ask for years of financial statements and does not make the credit file the deciding factor. Once the title is checked and the documents are signed, funds can move quickly.
Do I need a valuation for a fast short-term loan?
Usually not up front. Many short-term lenders assess the property themselves, using sales data and sometimes a drive-by look, and only order a formal valuation if the deal is large or unusual. That is a large part of why these loans are quick and why they cost less to set up.
Will a fast loan lend outside the capital cities?
Often, yes. Short-term private lenders are generally willing to lend in most towns and cities across Australia, provided the property can be sold if it ever came to that. Longer-term, cheaper loans are more selective about location.
Is a fast short-term loan more expensive?
Per month it usually costs more than a longer-term loan, because the lender takes on more speed and less paperwork. Because the term is short, the total dollars can still be modest. Ask for the full cost in dollars, then compare it with the cost of missing your deadline.