Frequently Asked Questions.

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Explore comprehensive insights into private lending, financing options, and more. Mercer Funding Group's FAQ section provides answers to common questions, empowering informed decisions about your financial future.

I. Defining Our Specialist Advantage

  • Private lending involves individuals or non-institutional entities providing loans to borrowers outside of traditional financial institutions. These lenders, which can include private investors, wealthy individuals, investment groups, or specialized lending companies, offer financing for various purposes such as property developments, property investment, small business financing and cash out / equity releases.

  • Private lending, despite its higher costs, offers several key benefits:

    • Flexibility in loan terms, repayment schedules, and eligibility criteria.

    • Faster access to funds compared to traditional lenders.

    • Catering to a diverse range of borrower profiles, including individuals, small businesses, real estate developers, and investors.

  • The Specialist Advantage: We offer Specialist Access to Australia's proprietary network of private and non-bank lenders. Traditional banks are restricted by rigid internal policy and slow processes, often rejecting complex or time-sensitive projects. We are structured for speed, flexibility, and bespoke structuring, ensuring we find a solution that precisely matches your unique requirements.

  • No. Mercer Funding Group acts as a facilitator in connecting borrowers with Private Lenders. Leveraging our extensive network and commercial knowledge, we put together funding packages to present to potential private lenders. Our aim is to secure favourable funding packages for our clients.

II. Client Eligibility & Suitability

  • We specialize in high-value, non-standard transactions. This includes Complex Property Development (land acquisition, construction, subdivision), Urgent Capital Needs (bridging loans, urgent settlement deadlines), and Business Finance for scenarios that don't meet bank criteria (e.g., ATO debt management or complex corporate restructuring).

  • No, that is a misconception. While we can assist with complex scenarios, many of our clients are high-net-worth investors and sophisticated property developers seeking speed, higher leverage, and flexible terms that banks simply cannot offer. We are chosen for the quality and speed of our solutions, not just as a last resort.

  • Yes, private lending may still be an option if you have equity in your property. Mercer Funding Group can assist in providing short-term funding solutions even with a low credit score.

  • Private loans are typically tailored for business purposes. The borrowing entity cannot be an individual, as funds are often required for business-related activities. Accepted business uses may include purchasing commercial property, starting or acquiring a business, paying off business or tax debts, securing working capital, or financing property development activities. Contact us to determine if your scenario is suitable.

III. Process & Timeline

  • Speed is one of our primary advantages. While the exact timeline depends on the complexity and documentation, we prioritize accelerated processing and can typically achieve indicative approvals within 24 to 48 hours. Funds can often be accessed far faster than traditional bank timelines.

  • Our goal is to make the entire process swift and seamless. We follow our streamlined 3-step approach—Consultation, Strategic Sourcing, and Facilitating Settlement. This structured process removes common delays, ensuring the path to funding is as short as possible.

  • Yes, an exit strategy is essential for almost all private loans. Private capital is generally short-to-medium term. A lender will require a clear, plausible plan for repaying the loan (e.g., selling the property, refinancing to a bank, or cash flow from a project). We assist in structuring this strategy upfront.

  • Our expert advisors are committed to providing guidance and support throughout your entire journey. We handle all liaising with lenders, coordinate legal documentation, and meticulously package your application to expedite the credit assessment, ensuring a seamless experience from start to finish.

  • We initiate the process via an online Specialist Consultation scheduling and digital information gathering. However, due to the bespoke nature of private finance, a simple "apply online" button is often insufficient. We require a dedicated consultation to ensure the optimal Strategic Structuring of your deal.

IV. Cost, Fees & Transparency

  • Private lending generally carries a higher interest rate than prime bank mortgages because it is a specialised service that delivers speed, flexibility, and funding for non-standard scenarios. The cost is offset by the value gained: seizing a time-sensitive opportunity, securing necessary leverage, or accelerating project completion.

  • Our value is derived from our expertise in finding and structuring the ideal solution. We operate on a clear, transparent fee structure. We will fully disclose all costs and fees throughout our process, ensuring complete clarity and integrity before proceeding with any application.

  • Absolutely not. Transparency is a cornerstone of our service. Our team ensures clear communication and honest advice, meaning all lender fees, legal charges, and brokerage costs are fully disclosed to you and documented clearly before you commit.

V. Compliance & Logistics

  • The majority of private loans we arrange are secured against real property (residential, commercial, or development sites). This security is a key factor that allows lenders to approve loans quickly and offer the flexible terms required for non-standard funding.

  • Yes, independent legal advice (ILA) is standard procedure for any secured lending, and especially for private finance. This is a crucial step to ensure you fully understand the terms of the loan agreement before execution.

  • A private loan is registered on the National Credit Register, similar to a bank loan. While a full credit check is part of our assessment, the key factor is the strength of the security and exit plan. Consistent, timely repayment will positively affect your credit profile.

  • Missing a payment on your private loan can result in late fees, additional interest charges, and negative impacts on your credit score. Communication with your lender is crucial if you're facing financial difficulties to explore repayment options.

  • It depends on the specific product and lender. Many private loans have a minimum term or break costs built into the contract. We ensure you are fully aware of any prepayment or exit fees before signing, aligning with our commitment to transparency.

VI. Getting Started

  • Getting started is easy! Simply reach out to Mercer Funding Group through our website or contact us directly to schedule a consultation. Our experienced team will assess your financial needs and guide you through the process of securing the right financing solution for you.

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