Inside Private Finance: How Australia's Largest Loans Get Done
The larger and more complex the borrower, the worse a standard bank tends to fit. A retail lender runs a serviceability calculator and a loan-to-value grid. Past a certain level of wealth, neither describes you.
This is where private finance lives. It is the quiet end of the market where large, complex and time-sensitive funding gets arranged through private banks and non-bank lenders, on terms negotiated individually rather than pulled off a shelf.
Here is how it actually works in Australia, where it fits, and what you are really paying for.
What private finance actually means
Private finance is an umbrella, not a single product. It covers the funding that sits beyond standard retail lending, where the structure of the deal matters as much as the price. In practice it spans two related worlds.
The first is high-value and private bank lending: large mortgages and facilities for high net worth individuals whose income or assets do not fit a normal application. The second is private credit: flexible, often shorter-term funding from non-bank lenders, commonly used for commercial property, bridging and development.
Most serious borrowers eventually need both. A specialist broker is the single point of access across the two.
Why the branch cannot help at this level
Retail banks are built for volume. Their systems reward borrowers who look the same: PAYG income, a clean salary credit, a residential property inside the LVR grid. That model is efficient, and it quietly excludes a lot of wealthy people.
If your income arrives through a company or trust, varies year to year, comes partly from offshore, or sits inside a portfolio rather than a payslip, the standard assessment understates you. The answer is not a better calculator. It is a lender who will assess your full position and negotiate terms for it, which is exactly what private banks and private credit lenders do.
The two worlds, side by side
| Private banking | Private credit | |
|---|---|---|
| Typical use | Large home or investment mortgage | Commercial, bridging, development |
| Lender | Bank private division | Non-bank and private lenders |
| Speed | Considered, relationship-led | Fast, sometimes days |
| Term | Long, like a standard mortgage | Short, often months to a few years |
| Priced for | Relationship and quality | Flexibility, speed and risk |
The asset-rich, income-light problem
The most common reason wealthy borrowers get declined is almost counterintuitive: their wealth is real, but it does not show up as income. Capital sits in a business, a share portfolio or property, while the taxable salary looks modest.
A retail bank sees the salary and stops. A private lender sees the balance sheet and structures around it, lending against the portfolio or the asset rather than a payslip. Solving that gap is much of what private finance exists to do.
Why private credit is having its moment
The timing matters. As banks have pulled back from parts of business and commercial property lending under tighter capital rules, private credit has stepped in. Australia’s private debt market has grown to more than A$230 billion in assets under management, according to EY-Parthenon’s 2026 market overview, and the Reserve Bank has noted the same shift in its 2026 analysis of credit markets.
For borrowers, that means more options for the deals banks now find awkward: a settlement that cannot wait, a development that needs funding before a sale completes, a facility secured against an unusual asset. The trade is honest. Private credit is priced for that flexibility, so it costs more.
What you are really paying for
Access. Private banks and credit funds do not advertise. The relationships that reach them are built over time, and a broker who already holds them saves you the years.
Structure. At this level the right answer is rarely a single loan. It is how the facilities, security and ownership fit together, and how that protects your next move.
Discretion. Your numbers are shared only with the lenders genuinely relevant to your situation, with your consent, and never broadcast across a panel.
The honest part
Private finance is a tool for specific situations, not a default. It usually costs more than retail lending and, in the case of private credit, runs on shorter terms with a clear exit in mind. Used well, it is the difference between a deal happening and not. Used carelessly, it is expensive.
The skill is knowing which world a given situation belongs in, and when a patient conversation with a private bank beats fast money, or the reverse.
This is general information, not financial or credit advice. Terms, rates and availability depend on the lender and your circumstances. Get advice specific to your situation.
Arrange a confidential conversation
If your situation calls for large or complex finance, a quiet, no-obligation conversation is the right first step. We will look at the position privately and map the options worth pursuing.
Request a private consultationMatty Teague, specialist mortgage and finance broker, Powered by Flint. Credit Representative 573962. Flint Group Pty Ltd ACL 488313.
FAQs
What does a private finance broker do?+
A private finance broker arranges large or complex funding that falls outside standard retail lending. That spans high-value mortgages through private banks, lending against share portfolios or other assets, and private credit for commercial, bridging and development needs. The role is access, structuring and negotiation, opening doors and terms that are not available on the open market.
What loan sizes count as private finance?+
There is no single threshold, but private finance typically begins where the retail banks stop applying off-the-shelf policy. In practice that often means facilities from several million into the tens of millions and beyond, where the structure matters as much as the rate.
What is the difference between private banking and private credit?+
Private banking generally refers to high-value lending arranged through a bank’s private division, often a large mortgage for a high net worth borrower with complex income or assets. Private credit refers to non-bank lenders providing flexible, often shorter-term funding, commonly for commercial property, bridging or development, where speed and structure outweigh headline price.
Will private finance cost more than a standard loan?+
Often, yes. Private credit in particular is priced for flexibility, speed and risk, so rates sit above standard bank pricing and terms are usually shorter. The value is in access and certainty: getting a deal done that a retail bank would decline or take months to assess. It is a tool for specific situations, not a default.
Is the process confidential?+
Discretion is part of the service. Sensitive financial details are handled privately and shared only with the lenders genuinely relevant to your situation, with your consent. For most high net worth clients, that confidentiality is as important as the terms themselves.
Who is private finance for?+
Business owners, investors, expats and high net worth individuals whose income or asset position does not fit a standard lending model: variable or international income, wealth held in companies, trusts or portfolios, large or unusual security, or a timeframe a retail bank cannot meet.
Matty works with business owners, investors and high net worth clients on large and complex finance, from private bank mortgages to private credit, with a focus on structure and discretion.
Arrange a private conversation