The lending criteria for private lenders vary a lot with banking finance. By comparison, businesses can enjoy the simplicity of the second mortgage loan lending criteria. See below some lending criteria for second mortgage business finance:
Firstly, the loan must be for the majority business purpose.
Consequently, greater than 50% of the second mortgage finance must be for business purpose.
Secondly, minimal or no income verification is required for most loans.
Thirdly, short term and start-up business ventures finance with one day ABN registration.
Fourthly, the second mortgage loans are useful when funds are needed urgently.
In particular, debt consolidation is available for tax debt and other business debt.
Importantly, some private lenders don’t require property valuations. Therefore, online or real estate agent valuations may be acceptable.
Also, credit defaults, court judgements, and various insolvency can be accepted.
In particular, fixed interest is payable for the loan term. However, some lenders offer variable rates.
Certainly, LVR’s available are generally to 80% inclusive of capitalising interest and loan set up costs.