Getting started with Private Lending

Private lending is growing fast—and brokers who understand it can gain a real edge. At Connective Advance, we’re here to help you navigate this space with confidence, whether it’s understanding borrower types, structuring deals, or tapping into expert support.

With more Australians turning to brokers for tailored financial solutions, diversifying your offering has never been more important. Private lending appeals to developers, investors, and high-net-worth clients who value speed, simplicity, and certainty. By expanding into this space, you can unlock new revenue opportunities, strengthen client relationships, and stay ahead in a competitive market.

Who these products will appeal to

Private Loan is designed for business owners, property investors, and commercial borrowers needing short term capital for investment, refinancing, or business expansion. Security may take the form of residential, commercial, specialised properties or vacant land.

Residual Stock Loan is tailored specifically for developers looking to unlock equity in newly completed projects, particularly in high demand metropolitan and growth areas. By providing funding for properties in both metro and regional locations, we’re ensuring that brokers can support clients with diverse investment strategies.

Key features of the products

Our interest rates are very competitive and include flexibility for the introducing broker to earn up to 2.0% upfront and a 0.25% trail commission. Generally, the setup cost to customers is significantly reduced with longer loan terms available, supported by a policy of no early repayment fees or claw backs.

Private Loan and Residual Stock Loan are designed to provide brokers with the flexibility to support their clients’ varying business needs. Key features of the products include flexible terms from 3 months to 3 years, a loan limit of $7.5M and flexible servicing parameters including ICR’s from 0.50x – 1.25x, no LMI, and no title insurance.

Recent scenario:
Private Lending – Residual Stock
Security property in Ocean Grove, VIC
$1,600,000 | 65% LVR | 3 years IO

• The 3 borrowers were joint directors and shareholders of a unit trust. They sought a short-term solution that would facilitate their financial goals.
• The purpose of the loan was to refinance a construction loan, enabling the borrowers to progressively sell down the properties at different intervals depending on market conditions.
• Residual Stock Loan offers no ongoing fees, no early repayment fees and provides the broker with upfront commission: 0.60% with flexibility up to 2.0% and 0.25% trail.

Check out our April monthly market focus here for:

• Ratings and Trends - a property snapshot of our capital cities
• Core Logic Data - commentary on the most recent Core Logic data
• Recent Transactions - takes a closer look at recently settled deals:
  • SMSF Commercial
  • Private Lending - Residual Stock
  • Commercial refinance + equity release
  • Commercial Lease Doc
• News and Views:
  • April RBA Quarterly Financial Stability Review
  • RLB Crane Index