Introduction Under Section 9 of the Banking Act 1959 (Cth) (‘Banking Act‘), only entities authorised by APRA may operate as authorised deposit-taking institutions, accepting deposits and making loans. Non-ADI lenders, often called non-bank lenders, provide credit without accepting deposits and are primarily…
Introduction When a borrower defaults, a secured creditor has the right to enforce its security interest and recover the debt from the collateral. The enforcement process (whether by appointing a receiver, exercising a power of sale, or taking possession) carries…
Introduction When a borrower misses repayments or breaches a loan covenant, a secured lender’s recovery depends on acting decisively within the framework of Australian law. The steps taken immediately after a default can determine whether assets are preserved or dissipated,…
Introduction Private lenders who rely on reactive monitoring often miss the subtle cash flow red flags that signal a borrower heading toward default. Spotting early warning signs, from covenant breaches to shifts in industry benchmarks, creates lead time to restructure…
Introduction A private lender’s work does not end at settlement, and private lending lawyers play a critical role in managing what comes next. Borrowers may seek loan variations, experience financial hardship, or request waivers long after funds are advanced. This article explains…
Introduction Private lenders use the 5 C’s of credit (Character, Capacity, Capital, Collateral, and Conditions) as a practical framework to evaluate every loan application. Unlike banks, which lean on credit scoring and income-based serviceability, private lenders weight collateral and capital…
Introduction Private lending offers attractive returns, but every loan carries the risk that the borrower cannot repay, the security is compromised, or the funds are tied to unlawful activity. Conducting due diligence across borrower identity, financial capacity, title searches, PPSR…
Introduction Private lenders who offer loans to individuals for personal, domestic, or residential investment purposes may be subject to the National Consumer Credit Protection Act 2009 (Cth) sch 1 (‘National Credit Code‘) and the National Credit Act. The distinction between regulated consumer credit…
Introduction When a private lender provides funds outside traditional banking channels, the loan agreement and security documentation form the foundation of the entire deal. These documents define the borrower’s obligations and protect the lender’s position if repayment fails. This article…
Introduction The PPSA has governed how security interests over personal property are created, registered, and enforced across Australia since its commencement in 2012. Private lenders and non-bank financiers who take security over anything other than land rely on correct PPSR…
Introduction Taking security for a loan in Australia involves two distinct legal regimes: registered mortgages over real property under the Torrens title system, and security interests in personal property governed by the Personal Property Securities Act 2009 (Cth) (‘PPSA‘) and the Personal…
Introduction Private lenders in Australia, including non-bank lenders and specialist funds, provide commercial loans that offer speed and flexibility beyond what traditional bank lending allows. Every facility rests on a handful of building blocks: the parties, the loan amount, the…
