3 Reasons Developers Choose Private Lending over Banks
In the current Australian property market, a developer’s biggest threat isn’t interest rates—it’s hesitation.
I’ve spent years watching high-potential projects stall because a traditional bank’s "standard" approval process took six weeks too long. As we noted in our 2026 Housing Outlook, if you can’t move at the speed of the market, you lose the deal.
At Mercer Funding Group, we’re seeing a massive shift. Savvy developers are no longer treating private lending as a "Plan B." Instead, they are making it their first choice. Here are the three reasons why the smartest players in the industry are leaving the Big Four behind.
Speed: The Ultimate Competitive Advantage
The Problem: Banks are bogged down by bureaucracy. By the time they finish their "final" review, your vendor has moved on to a cash buyer.
The Mercer Solution: We focus on the asset and the exit strategy. This allows us to issue approvals in days, not weeks, giving you the "certainty of funding" needed to sign contracts with confidence. This is especially critical for urgent private finance needs where timing is everything.
Flexibility: Financing Scenarios Banks Won't Touch
The Problem: The Problem: Traditional lenders have a narrow "box." According to ASIC’s 2025 report on private credit, non-bank lenders now play a vital role in Australia’s $200 billion private market, stepping in where major banks have reduced their appetite—particularly in complex real estate and construction projects.
The Mercer Solution: We look at the value of the project, not just a checklist. Whether you require Property Development and Construction Loans with higher leverage, a Bridging Loan to seize a time-sensitive opportunity, or an Equity Release to leverage your existing portfolio, we structure finance that fits your goals—not a bank’s rigid policy manual.
Direct Access: You’re a Partner, Not a File Number
The Problem: In a bank, you’re talking to a "relationship manager" who has to ask a committee for permission. You never speak to the actual decision-maker.
The Mercer Solution: When you work with us, you are dealing with experts who understand the Geelong and national property markets. You get direct answers, transparent terms, and a partner who wants to see the project finished just as much as you do.
The Bottom Line
Traditional banking is built for stability, but it isn't built for the speed of modern property development. If your next project requires agility and a lender who understands the nuances of private capital, it’s time to change your strategy.
Ready to move faster? Book a Strategy Call with John now.
About Mercer Funding Group
Based in Geelong and serving business owners and developers Australia-wide, Mercer Funding Group is a specialist provider of private commercial capital. We bridge the gap where traditional banks fall short, providing the speed, flexibility, and transparency required to move projects forward.
Whether you’re navigating a property development in a growth corridor or require an equity release for a new business venture, we provide the strategic bridge to your next milestone.
Disclaimer: This article is provided by Mercer Funding Group for informational purposes only. The content is general in nature and does not constitute financial, legal, or taxation advice. Because commercial lending is complex and every business situation is unique, you should consult with a qualified professional before making any financial commitments. Mercer Funding Group facilitates commercial transactions only and does not provide or assist with consumer credit.
