First Mortgage Private Loan – Oallen, NSW

Private Funding for Art Gallery Stock Expansion

Situation

An established art gallery business approached Assurity Capital seeking additional capital to acquire new stock for upcoming exhibitions. The borrower owned a substantial rural property in Oallen, NSW, with an estimated value of approximately $3,000,000.

The funding requirement was $375,000, and because of the very low loan-to-value ratio (around 12.5%), no formal valuation was required.

Loan Structure

• Loan Amount: $375,000

• Security: First mortgage over a rural property in Oallen

• Estimated Property Value: ~$3 million

• LVR: ~12.5%

• Valuation: Not required

• Purpose: Purchase of art gallery stock

Why This Deal Worked - First mortgage

1. Exceptionally Low LVR

With such a large equity buffer, the deal posed minimal risk to the lender, supporting a streamlined process without a valuation.

2. First Mortgage Security

A first mortgage gave the lender priority security over the property, further improving risk appetite and enabling flexible structuring.

3. Clear Business Purpose

The borrower was using funds to purchase inventory — a straightforward business use with clear commercial rationale.

4. Fast Turnaround

The valuation waiver meant faster assessment, reduced cost for the borrower, and quicker settlement.

Benefits to the Borrower

• Immediate access to capital to expand gallery stock

• No time or cost spent on a valuation

• Ability to leverage existing property assets to grow their business

• Low-documentation, common-sense approval approach

• Maintained full ownership of their rural property

Broker & Partner Takeaways

• Equity unlocks flexibility: Strong security with low LVR can remove barriers like valuations.

• Private lending is ideal for commercial needs: Especially when bank turnaround times or documentation requirements slow clients down.

• First mortgage = strong approval pathway: Priority security improves lender comfort and reduces friction.

• Asset-rich clients benefit most: Borrowers with unencumbered or lightly-geared property can secure fast business loans with minimal requirements.

Suggested Messaging for Clients

If your client owns property and needs business funds (inventory, equipment, working capital), this type of first-mortgage private loan is a fast and efficient solution — especially when the equity position is strong.

FAQ

Q: What is a first mortgage private loan? A: A commercial loan secured by a first priority charge over real property, typically used for business purposes.

Q: Why was no valuation needed in this case? A: The LVR was so low (around 12.5%) that the lender had sufficient comfort without needing formal valuation.

Q: What was the purpose of the loan? A: To purchase new stock for an art gallery business.

Q: Is this suitable for business owners? A: Yes — especially those who own property and need quick access to capital without bank delays.