7 Questions to Ask a Private Lender

Understanding the typical timeframe for loan settlement is vital. This is especially true in business where, in many cases, the need is for urgent funding.

Ask the lender how long it usually takes from the loan application to the disbursement of funds. This information helps you plan your financial needs accordingly and ensures that the lender can meet your deadlines.

2. What’s Your Settlement Record?

Inquiring about the lender's settlement record provides insight into their reliability and efficiency. A strong settlement record indicates a lender's ability to process and close loans effectively. You might want to ask for statistics or references to validate their claims.

3. Where Does the Funding Come From?

Knowing the source of the lender's funds can give you confidence in their stability and capacity to fund your loan. Some private lenders may use their own capital, while others might source funds from investors or financial institutions. Understanding this can help you assess the lender's likelihood of being able to settle a loan.

4. Who Makes the Lending Decision?

It’s important to know who is responsible for making the final lending decision. Some private lenders have a committee or a single individual who reviews and approves loan applications while others are funded by individual investors who make the decisions. Understanding their decision-making process can help you gauge the likelihood of your loan being approved and the time it might take.

5. What’s the Default Process?

No one plans to default on a loan, but it's crucial to understand the lender’s procedures if it happens. Ask about their policies and what steps they take in the event of a default. Knowing this in advance can prepare you for potential scenarios and help you understand the consequences and options available if your client encounters financial difficulties.

6. Do You Have Any Case Studies I Can See?

Requesting case studies allows you to see real examples of how the lender has helped other clients. These examples can provide insights into the types of projects they finance, their approach to lending, and the outcomes they have achieved. Reviewing case studies can also give you confidence in their ability to meet your specific needs.

7. Do You Have Any Testimonials I Can Read?

Testimonials from previous clients can offer valuable insights into the lender’s customer service, reliability, and overall performance. Positive testimonials can reassure you of their credibility and the quality of their services. Be sure to read a variety of testimonials to get a balanced perspective.

About Private Mortgages Australia (PMA)

PMA offers a variety of flexible, short-term business funding solutions such as:

• Bridging/working capital loans 
• Equipment purchases 
• ATO tax debt solutions 
• Debt consolidation/refinancing 
• Equity release 
• Subdivision finance 
• Flip finance 
• Residual stock finance

Brokers and SME owners looking to enquire will only need to submit a Quick App form (around 10 minutes) to get the application process started.

PMA prides itself for its streamlined application process. We have a guaranteed response time of 4-business hours to let you know if a solution is feasible. 

If a solution can be made,  we will issue an indicative letter of offer including an indicative interest rate and fees. 

Should the borrower agree to the terms and if all outstanding information has been submitted, the credit management team will conduct its due diligence and formalise approval. Loan settlement can be done as quickly as 5 business days.

Brokers who have successfully referred their clients receive a referrer’s fee within one business day of loan settlement with no clawbacks. Because PMA is channel agnostic, if the referred client goes directly to PMA and settles a new loan, the original referring broker will still get a referrer’s fee for that new loan.

If you are a broker and you would like to know more about our referral program or our commercial finance products, feel free to contact us.