Property-Secured Private Finance for Commercial, Business and Investment Matters

Lawyers and solicitors often manage matters where timing, settlement certainty, debt maturity and property security are central. A client may need to settle a commercial transaction, refinance a maturing private loan, pay out a caveat, manage creditor pressure or bridge a defined gap before a sale or longer-term refinance occurs.

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Assurity Capital works with lawyers, solicitors and legal professionals across Australia to assess eligible property-secured private lending scenarios for genuine business, investment, commercial and development purposes.

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We consider first mortgages, second mortgages, bridging finance, secured business loans, private-lender and caveat refinance, ATO and creditor payment finance, debt consolidation, residual stock finance and urgent commercial settlement scenarios from $50,000 to $5,000,000 and above, subject to assessment.

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This is non-consumer lending only. Assurity Capital does not provide consumer-purpose personal loans, owner-occupied home loans, family-law settlement finance or general personal estate funding.

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When Lawyers May Refer a Private Lending Scenario

Private lending may be relevant where a client has an eligible property-backed transaction but cannot rely on mainstream finance due to timing, policy, documentation, a complex debt position or a non-standard commercial structure.

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A private-loan referral is stronger where the solicitor can clearly identify:

• The required loan amount

• The genuine business, investment or commercial purpose

• The property proposed as security

• Existing mortgages, caveats and other registered interests

• The settlement deadline or funding urgency

• The proposed exit strategy

• Documents supporting the transaction, debt payout or repayment pathway

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Private lending is not simply “fast finance.” It is property-secured finance that requires a clear commercial rationale, acceptable security and a realistic plan to repay the facility.

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Private Lending for Urgent Commercial Property Settlements

Commercial property transactions can require fast action when settlement dates, deposit obligations, refinance conditions or creditor requirements are approaching.

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Assurity Capital may consider property-secured bridging finance or a first mortgage private loan for eligible commercial and investment property settlements, including:

• Commercial property acquisitions

• Investment-property settlements

• Industrial, retail, office or mixed-use property transactions

• Urgent refinancing before a settlement deadline

• Funding a deposit or balance of purchase for a genuine commercial purpose

• Bridging a property purchase while another property is sold or refinanced

• Refinancing existing property-secured debt before completion

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The relevant legal and transaction documents help explain the funding requirement. A client should provide the contract of sale, settlement date, required funds, security-property details, existing debt and proposed exit strategy.

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Refinancing Private Lenders, Caveats and Second Mortgages

A common legal referral scenario is a client with an expiring private loan, caveat loan or second mortgage. The original exit may have been delayed because a property has not yet sold, a refinance has not settled, development stock remains unsold or a commercial transaction has taken longer than expected.

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Assurity Capital may consider a property-secured refinance for eligible borrowers who need to pay out:

• An existing private lender

• A caveat holder

• A maturing second mortgage

• A short-term bridging facility

• Development or residual-stock debt

• Eligible business or investment-related liabilities

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A refinance does not remove the client’s debt. It replaces the existing facility with a new loan that has its own interest, fees, security requirements and maturity date. The new facility should create a realistic pathway to a final sale, settlement, refinance or other repayment event.

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Solicitors should obtain and provide:

• A formal payout figure from the current lender

• Current loan statement and maturity date

• Any default notice, demand or enforcement correspondence

• Title search and details of mortgages, caveats and registered interests

• Property valuation or market evidence

• Clear details of the client’s proposed exit

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An enquiry or refinance application does not automatically prevent the existing lender from taking contractual or enforcement action. Clients should obtain independent legal advice where appropriate.

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Caveat Loans, Caveats and Property Security

A caveat loan is a short-term property-secured finance arrangement involving a caveat or claimed interest recorded against a property title. It is commonly used for business, investment and commercial scenarios.

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A caveat is not the same as a registered second mortgage. A caveat records notice of a claimed interest and may restrict dealings with the property title. A second mortgage is a registered mortgage that ranks behind an existing first mortgage. Their legal effect, priority, documentation and enforcement position may differ.

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When a client needs to refinance a caveat, the new facility may be structured to pay out the caveat holder at settlement. The caveat then needs to be withdrawn, discharged or otherwise dealt with as part of the settlement process.

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A solicitor’s role is particularly important in confirming title, existing securities, payout and discharge mechanics, borrower authority, loan documentation and the client’s understanding of the obligations.

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Bridging Finance for Business, Investment and Commercial Transactions

Bridging finance is short-term property-secured funding that covers the gap between an immediate commercial requirement and an expected repayment event.

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Eligible bridging scenarios may include:

• Purchase before sale of an investment or commercial property

• Urgent settlement while bank finance is being finalised

• Refinancing an existing private lender before a sale completes

• Funding a commercial acquisition before another asset is sold

• Development completion or residual-stock funding

• Bridging a transaction affected by delayed settlements

• Paying out an existing lender while a longer-term refinance is arranged

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The client’s exit strategy is the key part of any bridging-loan assessment. Possible exits include a property sale, bank refinance, settlement, business sale, residual-stock sale or another documented source of funds.

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ATO and Creditor Payment Finance

Solicitors may also act for clients facing eligible business or investment-related ATO liabilities, supplier debt, creditor pressure, maturing private facilities or other urgent commercial obligations.

Assurity Capital may consider property-secured private finance where the purpose is genuine, the liabilities are clearly documented and the client has a practical plan to repay or refinance the new facility.

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Relevant documents may include:

• ATO statements

• Creditor invoices and payment demands

• Formal lender payout figures

• Current financial and debt schedule

• Property title and security details

• Evidence of proposed sale, refinance or settlement

• Company, trust, director and guarantor details

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Using property-secured finance to pay an ATO liability or creditor does not remove the debt. It converts the obligation into a new secured facility. Clients should understand the total cost and risk to the security property.

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Business and Investment Debt Consolidation

Business and investment debt consolidation may combine eligible liabilities into one property-secured loan. This can be relevant where a client has multiple private loans, caveats, business debts, commercial facilities, creditor obligations or investment-property liabilities that need to be reviewed as one overall position.

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A strong consolidation scenario includes a complete debt schedule showing:

• Every creditor and amount owing

• Formal payout figures

• Existing security and lender priority

• Maturity dates and payment deadlines

• The purpose of the new facility

• Total debt before and after settlement

• The proposed final exit strategy

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Debt consolidation does not necessarily reduce the cost of debt. It may extend the loan period and add interest, fees, legal and valuation costs. The client should obtain appropriate legal, accounting, tax and financial advice before proceeding.

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First Mortgage and Second Mortgage Private Loans

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First Mortgage Private Loans

A first mortgage ranks first over the security property. It may be used where existing debt is repaid at settlement or where the property is unencumbered.

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First mortgage private finance may be considered for eligible commercial acquisitions, investment transactions, private-loan refinance, business funding, development and urgent settlement matters.

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Second Mortgage Private Loans

A second mortgage sits behind an existing first mortgage. It may allow an eligible client to access available equity without necessarily refinancing the first mortgage.

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Second mortgage finance may be relevant for private-lender payouts, business working capital, creditor payments, commercial investment, bridging requirements and eligible refinancing scenarios.

The total debt position is central. The lender assesses the first mortgage balance, proposed second mortgage, any caveats or other interests and the property’s lender-assessed value.

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What Lawyers Should Include in a Referral

To enable an efficient initial assessment, email scenario@assuritycapital.com.au with:

• Client and borrowing-entity details

• Required loan amount

• Genuine business, investment or commercial purpose

• Property-security address and type

• Estimated value and existing debt

• Title details, mortgages, caveats and other registered interests

• Current private-lender payout figures, where relevant

• Contract, settlement date or urgent deadline

• Relevant ATO statements, creditor invoices or debt schedule

• Proposed exit strategy

• Any valuation, sales, refinance or transaction evidence

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Complete information helps identify whether the proposed structure may be viable before legal and valuation costs are incurred.

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Important Risk Considerations

Private lending can assist in time-sensitive commercial matters, but it carries risk. Private loans are often short term and may cost more than mainstream bank finance.

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Before a client enters into private finance, they should understand:

• Interest, establishment fees, legal costs and valuation costs

• The loan term and maturity date

• Whether interest is paid monthly or capitalised

• Security ranking and lender priority

• Personal guarantees and director obligations

• The consequence of a delayed sale, refinance or settlement

• The risk to property offered as security

• Default interest and enforcement provisions

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If a company may be unable to pay debts when due, or if enforcement action is underway, the client should obtain independent legal, accounting, tax and insolvency advice promptly.

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Work With Assurity Capital

Assurity Capital supports lawyers and solicitors with eligible property-secured private lending scenarios for business, investment, commercial and development matters across Australia.

If you have a client with suitable Australian property security, a defined commercial funding purpose and a credible exit strategy, email scenario@assuritycapital.com.au to discuss the scenario.

Finance is subject to assessment, acceptable security, genuine business, investment or commercial purpose, lender criteria, fees, legal documentation and approval.

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Frequently Asked Questions

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What private-lending scenarios can lawyers refer?

Lawyers can refer eligible first mortgages, second mortgages, bridging finance, private-loan and caveat refinance, secured business loans, ATO and creditor payment loans, debt consolidation, residual stock finance, development-related finance and urgent commercial settlement scenarios.

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Can a solicitor refer a client with a maturing caveat or private loan?

Potentially. Assurity Capital may consider a refinance where the property security, payout figure, total debt position, purpose and exit strategy are acceptable.

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Can a private loan be used for a commercial settlement?

Potentially. Property-secured private finance may be considered for eligible commercial, investment or business property settlements where there is suitable security and a credible exit.

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Can a second mortgage be used to pay out a caveat?

Potentially. A second mortgage may be considered to pay out an existing caveat where there is sufficient equity, the first mortgage position is acceptable and the client has a practical exit strategy.

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Does Assurity Capital provide finance for family-law settlements or personal estate matters?

No. Assurity Capital considers non-consumer loans for genuine business, investment, commercial and development purposes only. It does not provide consumer-purpose personal loans or owner-occupied home loans.

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How quickly can a private loan settle?

Timeframes depend on the security property, title, valuation, current lender payout, legal documentation and satisfaction of conditions. Assurity Capital reviews scenarios promptly, but approval and settlement timeframes cannot be guaranteed.