Private Lending And Short-Term Capital: Clarifying Misconceptions

The private lending space, though something we’ve done for 13 years and was our flagship product, can still carry unnecessary stigma and uncertainty with brokers and borrowers.

This is something we work with brokers and our borrowers closely on, to educate and empower them to access the right kind of finance, particularly when flexibility and speed are key to a deal. 

We spoke to our NSW State Manager Laura Stanley to clarify three misconceptions around Private Lending and to highlight how Assetline is helping brokers deliver real results for their clients.

According to Laura, most of the assumptions surrounding private lending simply do not reflect how modern non-bank lenders, like Assetline Capital, operate.

“I think there’s always that consistent answer when it comes to misconceptions in the short-term capital space,” Laura explains. “It can come with a negative connotation, which is absolutely unnecessary because it’s not a last resort. Private or short-term lending products are solution-based - offering structured capital delivered with speed and certainty when timing is critical.”

Misconception 1: Private Lenders Will Lend To Anyone for Any Asset

One of the most persistent myths is that private lenders simply lend against property without considering the borrower.

Laura is clear on this point.

“There’s this misconception that in private lending we'll fund any deal simply because there’s property behind it. In reality, we assess the full credit story."

Assetline assesses both the asset and the borrower and notes the 5 Cs of credit will apply for every loan, no matter the product type.

“We look at the actual asset. We lend against residential and commercial securities. We look at the area the property is in. Is it a liquid market? For example, has the property already been on the market for 252 days and now they’re asking for a six month loan? One plus one in that example is not going to equal two.”

Beyond the security, character is also considered.

“People say, ‘Well, you hold the asset. Who cares who the borrower is.’ There’s a reality on that, and that is character. We don’t just lend to anybody. We want to know we’re entering into a professional relationship.”

She continues, “we might be talking about short-term lending, but we want to set up long-term partnerships with brokers and borrowers. It’s in our mutual interest to see the successful settlement, sale or refinance of every project.”

Private lending remains credit led. It is priced for risk and assessed commercially. This gives our brokers and borrowers confidence that our funding model is robust and safe.

Misconception 2: Private Lenders Move The Goalposts

Another common frustration brokers raise is the idea that rates change mid-deal in the short-term capital space, or worse, that lenders fail to settle.

Laura acknowledges the perception, but we challenge this fiercely.

“There’s a misconception that private lenders move rates unexpectedly. Any adjustment only happens if the underlying credit profile changes – for example, new information comes to light, circumstances change, or a valuation doesn’t stack up … just like it might occur in a 30-year mortgage.”

For example, if a valuation comes in lower than expected or the LVR tier shifts, pricing adjusts accordingly.

At Assetline our certainty of capital across all of our loan products are a core differentiator and one that gives brokers and borrowers comfort when they submit a scenario. 

Laura explains, “We have a very robust balance sheet. If we give you the commitment that we can do the deal, and we entertain the scenario, we will settle the deal. We’ve got the funds ready to go.”

Misconception 3: You Can Settle In 24 Hours Every Time

Speed is one of the key advantages of private lending. However, aligning our, broker and borrower expectations early following submission of a scenario is key to keeping a calm, efficient translation. 

“When people ask, ‘Can you settle in 24 hours?’ The answer is yes, you can,” Laura says. “But what people forget is that we still have credit due diligence … and we have to get a valuation unless you’re looking at our no val product.”

Managing timeline expectations is critical and should be an ongoing conversation between the BDM, broker and borrower. Private lending is fast, but it is still structured and disciplined. 

Assetline’s process is designed for momentum, including same-day indicative offers and rapid settlements once valuation is received. 

“What helps us give a clear yes or no sooner is understanding the asset and the exit,” Laura shares. “Managing borrower expectations, while being results-oriented, is extremely important.”

To speed up our assessment, brokers should provide:

• Clear purpose of funds

• Asset details and location

• Realistic exit strategy

• Full asset and liability position

• Background context on the borrower

Private lending works best when transparency exists on both sides. Speed is achievable when documentation and exit strategy are clear from the outset.

Where Private Lending Provides The Clearest Pathway Forward

Private lending exists because real-world, development and property-backed transactions don’t always fit standard bank policy.

Laura is seeing strong demand in several areas.

“We’re seeing a lot of residual stock deals at the moment,” she says. “Developers move from one project to the next, and often the sale of one funds the start of the next. Sometimes they need time, and to bridge that gap.”

We support scenarios including:

• Equity release

• Site acquisition

• Residual stock funding

• Loans for refurbishment

• Cash out for working capital

• Short term bridging for business borrowers

Put simply, private lending gives brokers a tool to maintain momentum when timing is critical and structure matters.

Why Private Lending Is Becoming Essential For Brokers

Short term capital has become an important part of a broker’s toolkit, because it provides speed and flexibility.

As Laura puts it, many borrowers consider private lending when they’re “in a bind” and need a “lifeline lender” to move forward commercially.

The key word is commercial.

Private lending is not a fallback or a last resort. It is a strategic instrument when:

• Speed of funds is key

• Exit is clear

• Cash flow needs flexibility

• Development cycles require structured transitions, more time and for a funds gap to be filled

Assetline offers loan terms up to 36 months and jumbo loan sizes from $5million to $40million as well as flexible interest structures including capitalisation options.

“That’s how we do strategic, structured, short-term capital designed to create long-term certainty” says Laura.

Ready to Work with a True Lending Partner?

At Assetline, we do more than provide capital. We partner with brokers to structure solutions that move deals forward to set them and borrowers up for long-term success.

Whether you’re navigating a complex scenario, working against tight timeframes, or need clarity on how to position a non-standard borrower, our BDM and credit team team works with brokers from first scenario discussion through to settlement.

Clear answers. Commercial thinking. Funding certainty.

If you have a scenario that needs flexibility and certainty, speak with your local BDM and workshop the opportunity with us.