Finance adviser discussing non-bank property-secured lending with a business owner

What Is a Non-Bank Lender?

A non-bank lender is a finance provider that offers loans but does not operate as a traditional deposit-taking bank. In Australia, non-bank lenders can provide mortgages, business loans, asset finance, bridging finance and other forms of credit, often with lending criteria and funding structures that differ from major banks.

Assurity Capital is an Australian non-bank private lender providing property-secured finance for eligible business, commercial and investment purposes. We consider first mortgages, second mortgages, bridging finance, secured business loans, private-loan refinance and other time-sensitive property-backed scenarios across Australia.

A non-bank lender is not automatically the right choice for every borrower. The appropriate finance depends on the purpose of the loan, property security, total debt position, timeframe, costs and the borrower’s ability to repay through a clear exit strategy.

How Does a Non-Bank Lender Work?

A non-bank lender provides finance outside the traditional bank model. Rather than relying solely on a standard bank credit policy, a non-bank lender may assess an eligible application by considering the individual transaction.

For property-secured non-bank lending, the assessment may include:

The property offered as security
The property’s location, type, value and marketability
Existing mortgages and other debt
The proposed first or second mortgage position
The total loan-to-value ratio
The business, commercial or investment purpose
The required settlement timeframe
The borrower’s exit strategy

A non-bank lender still requires proper assessment, legal documentation and acceptable security. Flexible lending does not mean guaranteed approval.

What Is the Difference Between a Bank and a Non-Bank Lender?

Banks are authorised deposit-taking institutions that generally accept deposits and provide a broad range of banking services. Their lending decisions commonly follow detailed product policy, income verification, serviceability requirements, credit criteria and standard approval processes.

Non-bank lenders focus on providing finance without operating as a traditional deposit-taking bank. Some non-bank lenders specialise in particular loan types, borrower profiles or funding scenarios.

For an eligible private-lending scenario, a non-bank lender may be able to assess a transaction more flexibly where a bank cannot meet the required timeframe or where the structure does not fit standard bank policy.

However, a non-bank loan may have a shorter term, different pricing and fees, or more specific repayment requirements than a mainstream bank loan. Always compare the full loan terms, not only the interest rate.

Is a Non-Bank Lender the Same as a Private Lender?

Not always.

“Non-bank lender” is a broad term covering finance providers that are not traditional banks. A non-bank lender may provide home loans, business loans, equipment finance, commercial lending or other forms of credit.

A private lender is generally a non-bank lender that provides private finance, often secured by property. Private lending commonly focuses on the security property, loan purpose, total debt position and a defined exit strategy.

Assurity Capital is a non-bank private lender. Its focus is property-secured finance for eligible business, commercial and investment purposes.

What Is Private Lending?

Why Do Borrowers Use Non-Bank Lenders?

Eligible borrowers may consider a non-bank lender when mainstream bank finance is too slow, too restrictive or does not suit the individual transaction.

Common reasons include:

An urgent commercial or investment-property settlement
A short-term bridging requirement
An expiring private loan, caveat arrangement or second mortgage
A business owner with non-standard income or self-employed circumstances
A property type, borrower structure or transaction that does not fit bank policy
A need to access available equity without replacing an existing first mortgage
Business cash flow, stock, supplier-payment or expansion requirements
An eligible business-related ATO or creditor payment
A property development, residual stock or refinance scenario

Non-bank finance should be selected because it is appropriate for the transaction and repayment plan, not simply because it may be faster than a bank.

Can a Non-Bank Lender Approve a Loan Faster Than a Bank?

A non-bank lender can sometimes assess and settle an eligible scenario more quickly than a traditional bank, particularly where the security property, loan purpose and exit strategy are clear.

At Assurity Capital, many eligible scenarios can receive indicative terms within 24 to 48 hours once sufficient information is available. Some straightforward private loans can settle in as little as three to five business days.

These timeframes are not guaranteed. Timing depends on the property, valuation requirements, existing mortgages, legal documentation, borrower structure, lender assessment and satisfaction of all approval conditions.

Do Non-Bank Lenders Require Property Security?

It depends on the lender and product. Some non-bank lenders provide unsecured finance, while others specialise in asset-backed or property-secured lending.

Assurity Capital provides property-secured private lending. Acceptable Australian real estate is required as security for eligible loans. The property may include residential investment property, commercial property, industrial property, land, development property or mixed-use property, subject to assessment.

Assurity Capital does not provide unsecured personal loans or consumer-purpose owner-occupied home loans.

What Is a First Mortgage From a Non-Bank Lender?

A first mortgage is a loan secured by a first-ranking registered mortgage over property. The first mortgage lender has priority over other secured lenders in relation to that property.

A non-bank first mortgage may be considered for eligible business, commercial and investment purposes such as refinance, commercial acquisitions, bridging, development, residual stock funding or urgent settlement requirements.

Explore relevant Assurity Capital pages:

First Mortgage Loans
Startup Business Finance
Short Term Business Loans
Secured Business Loans
Residual Stock Finance
Bridging Loans
Investment for Commercial Purposes
Low LVR Loans Under $1m

What Is a Second Mortgage From a Non-Bank Lender?

A second mortgage is secured against property that already has an existing first mortgage. The first mortgage lender ranks ahead of the second mortgage lender.

A second mortgage may allow an eligible borrower to access available property equity without necessarily refinancing the existing first mortgage. It may be considered for business cash flow, debt consolidation, commercial obligations, eligible ATO-related business liabilities, investment opportunities or refinance.

The lender assesses the combined LVR, which includes both the first mortgage and proposed second mortgage.

Can a Non-Bank Lender Help After a Bank Decline?

A bank decline does not automatically mean an eligible borrower cannot obtain non-bank finance.

A bank may decline an application because of serviceability, income verification, credit history, borrower structure, security type, timing or internal lending policy. A non-bank lender may assess the transaction differently by considering the property security, total debt, purpose and exit strategy.

A bank decline is still relevant information. It does not guarantee non-bank approval, and it should be explained honestly when the scenario is submitted.

Can Self-Employed Borrowers Use a Non-Bank Lender?

Eligible self-employed borrowers may consider non-bank property-secured finance where traditional bank documentation does not fully reflect their current circumstances.

For example, a business owner may have seasonal income, recently changed structure, retained business earnings, incomplete financial-year records or a time-sensitive commercial opportunity. The lender still needs acceptable security and a credible plan to repay the loan.

Startup Business Finance and Secured Business Loans

What Is an Exit Strategy in Non-Bank Lending?

An exit strategy is the borrower’s defined plan for repaying the loan at or before the end of the loan term.

For property-secured private finance, a clear exit strategy is essential. It may involve:

Sale of the security property
Refinance to a bank or another non-bank lender
Sale of another asset
Settlement proceeds from a transaction
Completion and sale of a development
A documented source of business or investment funds

A borrower should not rely on an uncertain future event without evidence. If the intended exit is a refinance or sale, the timing, expected value and practical steps to complete it should be considered before entering into the loan.

What Fees and Interest Apply to Non-Bank Loans?

Rates, fees and terms vary significantly between lenders and transactions. For property-secured private lending, they can depend on:

First or second mortgage ranking
Security property type and location
Loan amount and combined LVR
Existing debt
Term and repayment structure
Borrower entity
Loan purpose
Urgency
Exit strategy

Potential costs may include interest, establishment fees, legal fees, valuation fees, discharge fees, extension fees and other transaction-specific charges.

Review the full proposed loan terms before proceeding. Ask how interest is calculated, when fees are payable, what happens if the loan is repaid early and what may apply if the loan term needs to be extended.

Are Non-Bank Lenders Regulated in Australia?

The regulatory position depends on the lender, product, borrower and purpose of the credit.

The National Credit Code applies to certain consumer credit contracts, including credit provided wholly or predominantly for personal, domestic, household or certain residential investment purposes. Business, commercial and investment structures can require careful consideration of the applicable legal framework.

Assurity Capital only considers eligible business, commercial and investment-purpose scenarios and does not provide consumer-purpose personal loans or owner-occupied home loans. Borrowers should obtain independent legal, tax, accounting or financial advice where required.

What Are the Risks of Non-Bank Private Lending?

Property-secured finance carries real risk. If a borrower cannot meet the loan obligations, the lender may have rights under the loan and security documents, which can include enforcement action against the secured property.

Before proceeding, borrowers should understand:

The total amount repayable
Interest and fees
The loan term and maturity date
Repayment obligations
The proposed exit strategy
Default provisions and enforcement risk
Guarantees and who may be personally liable
Whether the property used as security is essential to their long-term position

Independent legal advice is strongly recommended before signing private-loan and mortgage documents.

When Might a Non-Bank Lender Not Be Suitable?

A non-bank private loan may not be suitable where:

The funds are needed for personal, domestic or household expenses
The loan is for an owner-occupied home
There is no acceptable property security
There is insufficient equity after existing debt
There is no credible exit strategy
The borrower needs a long-term, low-cost finance solution rather than temporary funding
The loan would only delay an unsustainable debt problem

Private finance should support a clear commercial outcome, not create a more difficult debt position at the end of the term.

Submit a Non-Bank Lending Scenario

Assurity Capital considers eligible property-secured lending scenarios across Australia.

To obtain an initial assessment, provide:

Property address
Requested loan amount
Existing mortgage balances or payout figures
Purpose of funds
Required settlement date
Borrower structure
Proposed exit strategy

Call 02 9389 1077 or email scenario@assuritycapital.com.au.

General information only. Finance is subject to assessment, acceptable security, genuine business, commercial or investment purpose, lender criteria, fees, legal documentation and approval. Rates, fees, loan terms and settlement timeframes vary by transaction.

Assurity Capital does not provide personal loans or consumer-purpose owner-occupied home loans.