Video · 0:59

Is private secured business lending just hard money?

0:59 · Posted 14 January 2026 on the HomeSec YouTube channel

A HomeSec presenter answers four questions people ask about private, property-secured business lending: what the catch is, whether it is hard money, whether it is expensive, and whether applying affects a credit file.

In short

There is no hidden catch in the speed: the property carries the risk that months of financial statements would otherwise have to.
"Hard money" usually means a loan priced on the asset alone, with a short fixed term and heavy costs to extend or exit. The terms are what separate it from private secured lending.
Private secured lending is not the cheapest money. Judge its cost against what waiting would cost.
An indicative answer involves no credit enquiry. The credit file is accessed later, with your consent, at formal approval.

Where the "hard money" label comes from

Hard money is an American term for loans made against a hard asset, usually real estate, by a private lender who looks at the asset more than the borrower. It carries a reputation: short fixed terms, steep costs to extend, penalties for paying out early, and a lender who does not much mind a default because the property will cover it. That reputation is why the question gets asked at all.

What actually separates the two

Both kinds of loan are secured on property, and both can move faster than a bank because the security does work that financial statements would otherwise do. The difference is in the terms around the loan. At HomeSec:

The term is open. No minimum, no maximum, and no fee to extend: no rollover fee, no legal fees and no rewriting of the loan.
Repaying early is free. There is no early repayment penalty, and unused months of capitalised interest are rebated.
The costs are written down first. The rate and every fee are set out in a Letter of Offer before you have paid or committed to anything. There are no valuation fees and no monthly, line or account-keeping fees.
The exit is the main question. The assessment asks how the loan will be repaid, because a loan that only works if the property is sold under pressure is a bad loan for both sides.
A person decides. A person decides every loan. No artificial intelligence assesses, approves or prices it.

Is it expensive?

The presenter's answer is honest: not the cheapest, and not trying to be. A property-secured private loan costs more than a bank loan the bank is willing and able to make. It is worth pricing against the real alternative, which is often not a bank loan at all but a lost contract, a supplier on stop, or months of waiting for an answer that may still be no. What it costs lists every fee HomeSec charges.

Will applying affect my credit?

The video's short answer is no, and for the first step that is right. An indicative answer on the phone involves no credit enquiry. If you go ahead, your credit file is accessed with your consent as part of formal approval and your history is looked at, although the decision rests on the property and the exit rather than a score. What does mark a credit file is a run of formal applications to several lenders in a short time, so it pays to get indicative answers first. The written guide to private lenders in Australia explains how HomeSec lends its own money.

What the video means, in our published terms

Funding time. Funds can be released in as little as 24 hours from a clean, complete scenario. Timing depends on the file, the title and settlement requirements, and is not guaranteed.
Six months. Interest can be capitalised for up to 6 months, so there are no scheduled repayments in that period. Interest is not waived: it accrues and is added to the loan.
Extensions. An extension is assessed and agreed in writing before it applies. There is no fee to extend.
Approval. Every loan is subject to assessment and approval, real estate security, fees and an acceptable repayment or exit strategy. Owning property does not by itself mean your loan will be approved.
Purpose and size. $20,000 to $5,000,000, for business and investment purposes only. Credit provided for those purposes is not regulated under the National Consumer Credit Protection Act 2009 (the NCCP Act), and the protections available to consumer borrowers do not apply.

Questions people ask next

Is a private business loan covered by consumer credit law?

No. HomeSec provides credit wholly and exclusively for business and investment purposes. Credit provided for those purposes is not regulated under the National Consumer Credit Protection Act 2009 (the NCCP Act), and the protections available to consumer borrowers do not apply. That is why the business purpose is checked at the start of every application.

Why would anyone pay more than a bank charges?

Because the bank's price only applies if the bank says yes, and says it in time. When the deadline is days away or the bank has already declined, the useful comparison is the private loan against losing the deal, a penalty or a creditor's next step. Where a bank can do it on time, the bank is usually the better choice.

How do I tell a reputable private lender from a predatory one?

Look at what the lender needs to happen. A reputable one assesses how you will repay and wants the exit to work; a predatory one is comfortable if you fail because the property covers it. Ask whether the term can be extended without a fee, whether repaying early costs anything, and whether every charge is in writing before you commit.

The full guide

The video is the short version. The written guide has the detail: private lenders in Australia.

To talk it through about your own property, ring a Lending Manager on 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.