Finding a lender who has their own fund will save you lending costs if you are doing short term loan from 1-5 year second or first mortgage to raise capital for your business. Lender will ask to know the purpose with clear exit strategy to confirm how the borrower will close the loan end of the term. Interest rate usually 19% for second mortgage 11% for first mortgage. Unlimited defaults, part 9 agreements can be paid off with the cash out on top of business purpose declaration. Cost of capital will include resk fee, application fee, valuation fee, early termination fees as usual. Loan will be strictly restricted to 80% LVR where borrower will have option to capitalise all the costs for finance in the loan amount then pay off. Borrower also may factor the loan amount to service the repayment for short term when they are sitting on a big chunk of equity.
Including Latrobe there is a list of private funds available online for second mortgage loans. Loan amount can be banks as fast as 4-5 days including doing a valuation of the property straight away. Most funds might not commit to the time frame but there are readily available funds for readily sellable properties in metro locations mostly. Finding the valuer straight away might become difficult in rural location depending on network area of the fund.
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