Ultra-Low Leverage Private Loan on Commercial Property Approved Within Hours

Assurity Capital

Jul 7, 2023

3 min read

Updated: 6 hours ago

Assurity Capital recently settled a $750,000 first mortgage private loan secured against a two-storey commercial building in Chippendale, Sydney NSW.

The transaction was structured at an ultra-conservative approximately 15% Loan to Value Ratio (LVR) and received formal approval within hours, with no formal valuation required.

This scenario highlights how private lending can deliver exceptionally fast funding outcomes for borrowers with strong equity positions, particularly where timing and flexibility are critical.

First Mortgage Private Loan Scenario - Low Leverage

Loan Type: First Mortgage Private Loan
Loan Amount: $750,000
Location: Chippendale, Sydney NSW
Security: Two-storey commercial building
Leverage: Approximately 15% LVR
Valuation: No formal valuation required
Approval Time: Same-day formal approval
Purpose: Flexible use of funds backed by substantial equity

Commercial Property Used as Security

The loan was secured against a commercial property located in Chippendale, an increasingly sought-after inner-city Sydney precinct known for its:

Proximity to Sydney CBD
Strong commercial and mixed-use demand
Ongoing urban redevelopment
Access to universities, transport, and retail precincts
Diverse commercial property profile

The strength of the underlying asset and substantial available equity contributed to the low leverage position and streamlined assessment process.

Ultra-Low 15% LVR Lending Scenario

One of the key strengths of this transaction was the exceptionally low leverage level.

At approximately 15% LVR, the transaction presented a highly conservative security position, allowing for:

Faster credit assessment
Reduced lender risk exposure
Flexible loan structuring
Streamlined due diligence requirements
Accelerated approval and settlement

Low LVR private lending scenarios are often attractive where borrowers require immediate access to capital without lengthy bank approval processes.

Same-Day Approval Without a Formal Valuation

Due to the quality of the commercial security and the conservative leverage position, Assurity Capital was able to formally approve the transaction within hours without requiring a new formal valuation.

In suitable scenarios, removing the valuation requirement can provide significant advantages, including:

Faster settlement timeframes
Reduced upfront costs
Simplified documentation requirements
Immediate access to funding opportunities

For borrowers operating in time-sensitive commercial or investment environments, speed can be just as important as pricing.

Why Borrowers Use Private Commercial Loans

Private commercial lending can provide flexible funding solutions where traditional lenders may be unable to meet timing requirements or policy limitations.

Borrowers commonly utilise private loans for:

Business growth opportunities
Commercial property acquisitions
Refinance transactions
Working capital requirements
Investment opportunities
Short-term liquidity solutions
Equity release from commercial assets

Because private lenders assess transactions individually, borrowers with strong equity positions may benefit from faster and more flexible outcomes.

Flexible Lending Backed by Real Estate Security

At Assurity Capital, we assess each scenario based on the overall strength of the transaction, including:

Security quality
Equity position
Exit strategy
Borrower objectives
Timing requirements

This flexible approach allows us to structure practical funding solutions outside the limitations of traditional bank lending.

The Outcome

Assurity Capital successfully facilitated the first mortgage private loan, providing the borrower with rapid access to capital secured against their Chippendale commercial property.

Settlement Highlights

$750,000 first mortgage private loan settled
Chippendale commercial property used as security
Approximately 15% LVR
Same-day formal approval achieved
No formal valuation required
Flexible funding structure provided

Why Timing Matters in Private Lending

In many commercial and investment scenarios, opportunities can be lost while waiting for traditional bank approvals, valuations, and lengthy credit processes.

Private lending can offer: