Why Private Lending

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The Advantages of Private Lending

Fast, Flexible Funding Solutions for You

Private lending companies provide specialized construction finance solutions designed to meet the unique needs of property developers, builders, and investors. Unlike traditional banks, they offer fast, flexible funding for a variety of projects, from new builds and renovations to incomplete developments.

By working with a private lender, you gain access to tailored loan structures, competitive terms, and a streamlined process that helps you keep projects on track and seize opportunities without unnecessary delays.

melbourne city skyscrapers symbolizing property development supported by h4 services private lending
two people shaking hands over a signed agreement, symbolizing successful private lending partnership – h4 services

Project-Focused Finance Solutions

Why Developers Choose Private Lending Over Banks

Developers increasingly turn to private lending because it offers speed, flexibility, and tailored solutions that traditional banks often cannot match. Private lenders focus on the value of your project and assets rather than rigid credit criteria, allowing you to secure funding for new builds, renovations, or incomplete developments quickly. With streamlined approval processes, personalized service, and access to a wide network of lenders, private lending ensures your projects stay on schedule and financially supported without the delays and red tape of conventional banking

Full Loan Amount Upfront

  • Private lenders often release the entire loan amount at once, especially for bridging or land acquisition.
  • Banks usually release funds in staged payments, slowing construction timelines and creating cash flow bottlenecks.
  • This means private lending allows developers to move fast, pay trades, and avoid delays.

Minimal Documentation

  • No tax returns, no BAS statements, no company financials required.
  • Loans are asset-based – secured by property, not income history.
  • Ideal for developers who, are mid-project, have incomplete financials and are structured through trusts or complex entities.

Fast Turnaround

  • Indicative Offers: Get a no-obligation loan offer within 24–72 hours to quickly assess your funding options
  • Rapid Settlements: Once approved, funds can be transferred in just 5–10 business days to keep projects on schedule.
  • Faster than Banks: Private lending avoids the 4–12+ week delays typical with traditional bank loans.

Flexible Lending Terms

  • Lenders can structure interest-only terms or customised payment terms tosuit your project.
  • Loans can be for short durations (3 to 24 months)
  • Easier to restructure / refinance if needed
  • Often more open-minded about non-standard or complex projects

Project Flexibility

  • Understanding Development Risks: Private lenders recognise the challenges of property development and offer flexible lending solutions.
  • Funding a Variety of Projects: They can provide finance for incomplete developments, DA-approved land, and construction start-ups.
  • Compared to Banks: Traditional banks typically favour “clean,” low-risk projects with presales and high equity, limiting options for developers

Bad Credit? No Problem

  • Focus on Property, Not Credit: Private lenders evaluate the asset and its potential rather than your personal credit history.
  • Past Credit Issues: Ideal for borrowers with previous defaults, arrears, or other credit challenges.
  • Recovery-Friendly: Perfect for developers recovering from financial setbacks, including COVID-related impacts.
melbourne city skyscrapers symbolizing property development supported by h4 services private lending

Frequently Asked Questions

What Developers Should Know

H4 Services Pty Ltd is a private lending facilitator and does not offer financial advice, credit, or lending products. All lending is arranged through independent private lenders or funders. We recommend all clients seek independent legal and financial advice before proceeding. We are not a credit provider as defined under the National Consumer Credit Protection Act (NCCP).

Private lending is when non-bank investors provide secured loans based on the value of real estate or other tangible assets – not on your credit score, income or financials.

Loan-to-Value Ratio (LVR) - is the percentage of the loan amount compared to the value of the property offered as security.

Loan-to-Cost Ratio (LCR) is the percentage of the loan compared to the total cost of the development, including land, build costs, approvals, etc. Lenders may use LCR to assess feasibility for construction loans.

We work with: Licensed Builders, Property Developers (small and large), Owner-Builders (some exceptions), Construction & Development Companies, Investors stuck with incomplete projects