Private & short-term · private credit
When the banks won't, private credit can.
Capital from private investment funds rather than banks. Used where bank lending is unavailable (non-conforming borrower, complex deal, urgent timeframe) or strategically preferred. Pricing reflects risk and complexity. Cashtech introduces qualified opportunities.
What it is, when it fits
Plain English, with the trade-offs.
Private credit is term lending from private investment funds rather than commercial banks. The category has grown substantially since the 2010s as banks tightened policy on commercial lending and institutional investors moved into direct lending. Private credit funds underwrite directly, document bilaterally, and hold loans on their own books rather than syndicating or distributing. Pricing reflects risk and complexity (8% to 15% p.a. typical, larger ranges for specialist deals), with loan sizes from $500K to $50M+. Use cases: non-conforming property developers, businesses with recent restructure or thin trading history, high-LVR commercial deals, complex structured situations, mid-market growth capital. Each fund has a specific mandate (sector, deal size, security type, geography); the right fund for any given deal depends on matching deal profile to mandate. Documentation is bilateral and bespoke rather than standardised; legal complexity is materially higher than bank lending.
Broker meeting business owners on-site at their workshop.
Typical scenarios
Non-conforming property developer
Why: Bank policy doesn't fit; project economics are sound.
Outcome: $5M private credit facility for development, 15-month term, exit via sales settlement.
Business with recent restructure
Why: Restructure 18 months ago, current trading strong, banks slow to re-engage.
Outcome: $2M private credit, 24-month term, refinance to bank as restructure history matures.
High-LVR commercial deal
Why: Owner-occupier deal at 80% LVR; banks capped at 75%.
Outcome: $3M private credit, 24-month term, refinance to bank at year 2 as LVR improves.
Mid-market growth capital
Why: Established business needs growth capital, equity dilution undesirable.
Outcome: $8M private credit term loan, 36-month term, growth-aligned covenants.
Lenders for this product
Who we work with.
- Wingate
- MaxCap
- Qualitas
- La Trobe Financial
- Liberty Commercial
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Deal profile assessment
We assess the deal against current fund mandates before approaching lenders. The right fund for any deal depends on sector, size, security, and geography.
- 02
Fund shortlist
Three to five funds typically fit each deal. We engage based on mandate match rather than spraying the whole market.
- 03
Term sheet and due diligence
Indicative terms within 1 to 3 weeks. DD is heavier than bank lending: financials, valuation, structure, exit. Typical timeline 4 to 10 weeks total.
- 04
Documentation and drawdown
Bilateral documentation drafted in parallel with DD. Drawdown follows execution; total timeline 6 to 12 weeks from mandate.
Indicative pricing & terms
Ranges, not promises.
Rate range
8 to 15% p.a. typical
Loan size
$500K to $50M+
Term
1 to 5 years
Security
Bespoke per deal: registered mortgage, fixed and floating charge, sometimes equity participation
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Private credit vs bank lending?
Banks underwrite to standardised policy and price tightly within that policy. Private credit underwrites bilaterally and prices to risk and complexity. For mainstream deals, banks are usually cheaper and faster; for non-conforming or complex deals, private credit fills the gap.
When does private credit make sense?
When bank lending is unavailable (non-conforming profile, sector restriction, recent restructure), when speed matters more than rate, when bespoke structuring is required, or when the borrower wants a single bilateral relationship rather than a syndicate.
Origination process?
Different from bank lending. Each fund has a specific mandate; the right fund depends on deal profile. We narrow the shortlist before mandating to avoid wasted process. Typical timeline 6 to 12 weeks from mandate to drawdown.
Fund-by-fund variation?
Substantial. Funds differ on sector focus, deal size sweet spot, security type appetite, geography, leverage, and pricing approach. Matching deal to fund mandate is the core skill.
Documentation complexity?
Bilateral, bespoke, materially heavier than standardised bank documentation. Plan for $20K to $100K+ legal cost depending on complexity. Engage lawyers familiar with private credit structures.
Exit and refinance planning?
Exit is critical. Most private credit deals exit via refinance to bank lending once the borrower's profile re-conforms, or via sale of the underlying asset. Plan exit at origination, not in the final months.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for private credit or, if it isn't the right fit, an honest signal of what is.