Understanding Private Lending in Sydney: A Comprehensive Guide

What is Private Lending?

Private lending refers to loans provided by non-bank entities — including individuals, private companies, or specialist funds — directly to borrowers. Unlike traditional banks, these lenders often offer more flexible terms and faster decisions. This makes private lending an attractive option for many borrowers.

Why is Private Lending Gaining Traction in Sydney?

• Speed & Flexibility: Borrowers seeking fast, tailored financing find private lending appealing. Approvals are quicker, and terms can be customized to meet specific needs.

  
  

• Gap in Mid-Market Lending: Traditional banks tend to focus on large corporates or consumer home loans, leaving mid-sized businesses underserved. Private credit fills this void effectively.

  
  

• Growth in Private Credit: Australia’s private credit sector is expanding rapidly. Estimates of private credit outstanding in Australia vary, but figures like ~A$40 billion (per RBA/APRA) and broader AUM numbers indicate significant growth.

  
  

Regulation & Compliance in Private Lending

• Licensing: Most private lenders providing credit to consumers (for personal or residential purposes) must hold an Australian Credit Licence (ACL) under the National Consumer Credit Protection Act 2009.

  
  

• Responsible Lending Obligations: Under ASIC’s RG 209, lenders must make reasonable inquiries into a borrower’s financial situation and assess whether a loan is “not unsuitable.”

  
  

• Other Regulations: Consumer protections under the ASIC Act (e.g., unfair contract terms, misleading conduct) often apply, especially in small business or consumer lending contexts.

  
  

Typical Use Cases in Sydney

• Bridging Finance or Construction Projects: Quick, short-term funding is often needed to close property deals or fund development.

  
  

• Borrowers Who Don’t Fit Bank Criteria: This includes individuals with complex credit histories, non-standard income, or time-sensitive needs.

  
  

• Deal-Specific / Niche Financing: Private lenders can provide tailored solutions where banks may be slow or unwilling to act.

  
  

Considerations for Brokers and Borrowers

Factor	Why It Matters in Private Lending
Interest Rates	Often higher than banks — reflecting risk and flexibility. Compare carefully.
Speed & Certainty	Fast funding may justify higher cost. Critical in urgent transactions.
Licence & Compliance	Ensures borrower protections and legal soundness. Must check lender holds ACL when applicable.
Transparency	Clear terms, disclosures, and exit strategy key.

The Private Credit Landscape & Trends

• Private Credit Attracting Investor Interest: Asset managers like Ares have raised funds for direct lending in Australia and New Zealand. Additionally, Pengana has launched private credit funds to meet growing demand.

  
  

• Industry Oversight: The RBA and APRA are reviewing non-bank/private credit due to financial stability implications. However, the overall share of private credit remains modest.

  
  

Why Work with Assurity Capital for Private Lending in Sydney?

When borrowers and brokers turn to private lending, the difference between a good outcome and a costly one often comes down to the lender’s experience, transparency, and reliability. At Assurity Capital, we pride ourselves on offering more than just fast finance — we provide certainty and trust in every deal.

Speed Without Cutting Corners

In Sydney’s competitive property and business environment, timing is everything. Assurity Capital specializes in swift approvals and settlements, often within days. This allows clients to act quickly on opportunities. However, speed never comes at the expense of compliance or due diligence — meaning brokers can recommend us with confidence.

Flexible Solutions Banks Can’t Offer

Traditional banks often have rigid policies, lengthy approval times, and narrow lending criteria. At Assurity Capital, we tailor solutions to fit the borrower — not the other way around. Whether it’s a second mortgage, bridging loan, or business funding secured against property, our team can structure loans that align with complex or time-sensitive needs.

A Partner for Brokers and Referral Partners

We work closely with mortgage brokers, accountants, lawyers, and financial advisers who need a dependable private lending partner. By helping them secure funding for their clients when banks can’t, we strengthen their client relationships and protect their reputation.

Transparent, Professional, and Ethical

Private lending has sometimes been viewed as a “last resort” — often due to a lack of transparency from some operators. At Assurity Capital, we’re changing that perception by providing:

• Clear loan terms, with no hidden surprises.

• Professional communication every step of the way.

• Structured exit strategies, ensuring clients aren’t left exposed.

  
  

Strong Sydney Market Knowledge

Being based in Sydney, we understand the local property market, borrower needs, and business conditions better than many national players. This insight allows us to move quickly with realistic valuations, practical risk assessments, and lending structures that suit the Sydney market.

The Assurity Advantage

• Loans from $50,000+

• Flexible loan terms to suit borrower needs

• Fast approvals, often within 48 hours

• Bespoke loan structuring for complex cases

• Trusted by Sydney’s brokers, accountants, and lawyers

  
  

Contact Assurity Capital today.