Private Credit and Non-Bank Commercial Loans
A bank decline isn't a market decline. Private credit funds and non-bank lenders write commercial debt that falls outside bank policy, or that has to settle faster than a credit committee can meet. It costs more, so we tender it on total cost and plan the exit back to cheaper debt from day one.
Book a Free 15-Minute Finance AssessmentPrivate Credit at a Glance
Who it's for
- Borrowers declined on bank policy rather than serviceability: ATO debt, a recent loss, specialised security or loan size
- Deals with a hard deadline: settlement, a vendor, or a facility reaching maturity
- Developers and investors who need stretch leverage through second mortgage or mezzanine debt
- Businesses bridging to a sale, a refinance or a capital raise
What we structure
- Senior first-mortgage private loans over commercial, residential and land security
- Second mortgage and mezzanine debt behind an existing bank facility
- Short-term bridging loans with a defined exit
- Construction and residual stock facilities from specialist funds
What lenders need
- A clear exit, whether sale, refinance or cash flow, with realistic timing
- A current valuation, or instructions for one, and the full security position
- Recent financials or trading figures, and why the bank declined
- First-mortgagee consent where the new debt ranks second
Speed vs Price: What You Are Paying For
Compare private credit on total cost over the expected term, not the headline rate. The rate is only one line:
- Interest rate. Priced above bank debt for risk, speed and flexibility. The Glenclair Pricing Index compares margins by lender tier, including private credit.
- Establishment and line fees. Often a percentage of the limit, charged up front or over the term.
- Prepaid or capitalised interest. Helps cash flow, but reduces the net advance and adds to the balance.
- Exit and early repayment fees. These matter most if you plan to refinance to a bank quickly.
- Default terms. Default rates and extension fees are where a short bridge becomes expensive.
Second-Ranking and Mezzanine Debt
Second mortgage and mezzanine debt sit behind a first-ranking bank facility. They reduce the equity you need in a development or an acquisition, but they need the first mortgagee's consent and a deed of priority, and they are priced for the risk of ranking second. We negotiate both sides so the senior and junior debt work together rather than trip each other's covenants.
Plan the Exit Before You Draw
Private credit works best as a bridge with a destination. Before settlement we map how the facility is repaid: a sale, a bank refinance once the file is clean, or cash flow over a defined term. Where the goal is a return to bank debt, we set out what the bank will need to see and when, so the move to a commercial refinance is planned rather than hoped for.
Private Credit FAQs
Is private credit the same as a non-bank lender?
Broadly, both lend outside the banking system. Non-bank lenders often run standardised products funded by warehouse facilities. Private credit funds lend investor capital and can tailor more bespoke deals. We tender both.
How fast can private credit settle?
A clean, property-secured deal can settle in days to a couple of weeks. Valuation, legal documentation and any first-mortgagee consent set the pace.
Will using private credit hurt my chances of bank finance later?
Not by itself. A private facility that runs cleanly and exits on time can be the bridge back to bank debt. Missed payments or defaults are what damage the file.
Is private credit more expensive than bank debt?
Yes. You pay for speed, flexibility and risk appetite. The aim is to pay only for what the deal needs, over the shortest sensible term, with the exit planned from day one.
Bank Said No, or Not in Time?
Send the bank's decline or conditions, the security details and your deadline. We'll tell you whether a bank can still do it, and if not, what private credit will cost and how you exit.
Book a free, no-obligation consultation with us today
Book a Free 15-Minute Finance AssessmentGeneral information only. It is not credit advice. Lending outcomes depend on the borrower, the security and the lender's assessment. Glenclair Financial is an independent commercial debt brokerage and authorised credit representative.