Private Business Loans and Tax Debt Finance

06/04/2022

The Overlooked Lending Option for Business Owners and Property Developers

Private Mortgages Australia offers private business loans to help with cash flow gaps, urgent funding needs, and ATO tax debts. Our flexible, fast solutions empower business owners to move forward when traditional lenders say no.

Challenges with Traditional Finance

Mention borrowing or business loans to most people and they’re likely to think of the big banks.

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Overlooked Lending Option for Businesses and Property Developers

Mention borrowing or business loans to most people and they’re likely to think of the big banks. The big banks spend millions on advertising, glossy images of smiling loan staff shaking hands with beaming small business owners who now have the funds they need.

But ask any small business owner whose business doesn’t tick all the big bank boxes just how easy it is to get finance, and chances are you’ll hear a very different story. Reports show that half of SMEs have been unable to secure sufficient funding in the last five years.

The reality? It’s often not you, it’s them. Traditional lenders rely on outdated processes, rigid rules, and a one-size-fits-all mindset that simply doesn’t work for many modern businesses.

That’s where private lending comes in.

What is private lending?

Private lending is exactly what it sounds like: borrowing from private investors who pool their funds into a managed investment and provide loans to businesses. Borrowers are typically small business owners or property developers who, for one reason or another, don’t fit the strict criteria of traditional banks.

Some common scenarios include:

Cash flow issues - temporary or recurring
Tax debt - needing urgent funds to pay the ATO
Asset rich but cash poor situations
Needing a short-term loan only
Lack of full financials or paperwork
Businesses less than 2 years old
Falling outside of serviceability requirements

How Private Lending Differs from Bank Loans

Unlike traditional bank financing, private business loans offer:

Shorter terms - usually 3 to 36 months
No strict serviceability requirements - lenders focus on whether the loan can be repaid within the agreed term, not rigid monthly servicing ratios
Flexibility - private lenders work with borrowers to find practical solutions
Fast settlements - funds can often be released in days, not the 6–8 weeks banks typically take

For small business owners and property developers, this flexibility can mean the difference between securing an opportunity and missing out.

Business Loans for ATO Tax Debt

One of the biggest hurdles many businesses face is dealing with ATO debt. Tax debt can quickly spiral into penalties, legal action, and unnecessary stress if left unresolved.

PMA provides Tax Debt Loans that allow business owners to:

Pay off ATO debt quickly
Avoid escalating penalties or enforcement action
Protect cash flow and keep operations running smoothly
Consolidate debt into a manageable short-term loan

Brokers: Have a client with tax debt? We can help!

How to spot a good private lender

How To Spot A Good Private Lender

As in most industries, not all private lenders operate ethically. Some use high-pressure or misleading tactics. Things to be cautious of include:

Unrealistic “too good to be true” rates
Large upfront fees (even if the loan doesn’t proceed)
Promises of 24-hour settlements without due diligence
Expensive forced valuations
Hidden cancellation fees

At PMA, we pride ourselves on transparent, ethical lending practices. We encourage borrowers and brokers to ask questions and do their research.

Common Misconceptions About Private Lending

Much like any other kind of non-traditional banking system, private lending and private lenders are caught up in a world of misconceptions and untruths. This is why so many businesses miss out on the opportunities to seek and find the finance they need to take their business to the next level. Let’s look at some of the most common mistaken beliefs many people have about private lending.

High interest rates

While private lending interest rates may seem higher than those of a bank, borrowers need to look at the total cost of the loan. While a private lender may charge higher interest for a shorter loan term, a bank loan with a lower interest rate but over a long period of time will often end up being more expensive. Check out this article we wrote about ‘why interest rates are irrelevant.’

Private lenders will lend to anyone

Many people think that private lenders are a little like loan sharks - that they’ll lend to anyone, even if they can’t afford the loan and won’t be able to make repayments. This is entirely untrue and usually, private lenders are even more conservative with who they’ll lend to than banks.

Private Mortgages Australia has an extensive due diligence process that they go through with each and every loan application to make sure the lending decision is wise. While banks will usually lend up to 80% or even 90% of the value of the property securing the loan, private lenders will usually lend a lot less than this, especially if the security property is in a location that would be deemed riskier.

The Realities of Private Business Loans

Private business loans offer real-world benefits:

Fast processing – funds available within days
Fewer requirements – less paperwork and no rigid pre-sale conditions for developers
Flexibility – tailored to suit specific business needs

Private lenders like PMA focus on practical funding solutions that help businesses move forward when the banks say “no.”

Case Studies: Real Scenarios, Real Results

Want to see how private loans work in action? Explore our Case Studies to read about businesses we’ve helped with:

Take the Next Step

Private Mortgages Australia makes business lending fast, flexible, and straightforward.

Business Owners: Need cash flow support or tax debt funding? Talk to us today.
Brokers: Got a client who doesn’t fit the bank’s criteria? We can help.

This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.