Mezzanine finance is designed for business owners who need growth capital or a funding gap filled without giving up equity, and without being constrained by slow bank processes. If you are refinancing, funding an acquisition, completing a development, or strengthening working capital ahead of a milestone, the right mezzanine lender can help you move quickly while structuring the facility around timing, security position, and your exit strategy. Contact us today.
At Secured Lending, we speak with clients every week who require finance, and we’re happy to provide guidance and requirements for mezzanine finance. We’ll talk through what you’re trying to achieve, what security is available, how the capital stack could work, and what a realistic path to repayment looks like.
Why choose a non‑bank private lender for mezzanine finance?
Choosing a non‑bank private lender for mezzanine finance is often about speed, certainty, and flexibility. Banks can be restricted by policy, documentation requirements, and slower credit processes—especially when the structure involves layered security, non‑standard income, time‑sensitive settlements, or a transaction that needs commercial judgement.
A non‑bank private lender may suit you when you need:
- Fast approval timeframes to secure an opportunity
- Flexibility around security and structure, including second‑ranking security where appropriate
- A lender that assesses the asset, the transaction, and the exit—not only a serviceability model
- Clear communication and direct decision making
Mezzanine finance is not one size fits all. The right structure depends on your asset, your cash flow, the senior debt position, and your exit plan (refinance, sale, completion, or stabilisation). The value of a private lender is the ability to look at the full transaction and propose terms that match the timeline.
Common reasons business owners use mezzanine finance
Mezzanine finance can be a strategic tool when senior debt does not cover the full requirement, or when you want to preserve liquidity while still executing your plan. Common use cases include:
- Acquisition funding where you need to bridge the gap between senior lending and purchase price
- Property‑related transactions where timing is critical and the capital stack must be completed quickly
- Business expansion, stock, or working capital when funds must be deployed fast
- Refinance of short‑term obligations to create breathing room for a planned exit
- Construction or repositioning where capital is required ahead of a valuation uplift
The key is matching the facility term and repayment pathway to your objective. Mezzanine finance is typically short term by design, so you should be able to articulate how the loan will be repaid—such as refinance to a bank, sale of an asset, or completion of a project.
How Secured Lending approaches mezzanine finance
When you’re seeking mezzanine finance, you’re usually balancing three pressures: time, certainty, and terms. Our process is built for decisive outcomes and practical structures.
Loan capacity and speed
- We have funded over $500million loans
- Loans from $250k to $10M
- Short term finance of 1 to 24 months
- Rates from 9.2% p.a.
- We use our own funds for fast decisions, and have an internal property valuation team to help move quickly (often within 24 hours)
Certainty and practicality
A private lender can provide a clearer line of sight on what is feasible early in the conversation. For mezzanine finance, we focus on:
- Security available and position in the capital stack
- The strength and realism of the exit strategy
- Timeline and critical dates
- The borrower story and transaction rationale
Guidance before you apply
Because we speak with borrowers every week, we can outline typical requirements for mezzanine finance and help you understand what improves approval outcomes. That includes the information that commonly supports a fast decision, what structure may be acceptable, and what issues to address upfront.
What we typically look for in mezzanine finance
Mezzanine lending decisions are driven by risk management and the borrower’s ability to execute the exit. While every scenario differs, the strongest applications usually demonstrate:
- A clear purpose for funds tied to an identifiable value creation or timing need
- A credible exit strategy within the agreed term
- Quality security with a sensible overall loan position across all lenders
- Transparent background on the borrower entity, directors, and transaction counterparties
- A plan that still works if the timeline extends, including contingency options
If you’re unsure whether your scenario fits mezzanine finance, we can provide guidance on whether mezzanine, private bridging finance, or another secured facility is the better match.
Broader secured lending capability (when your transaction needs more than one tranche)
Many mezzanine borrowers also need other forms of private credit across the same transaction. We are specialist private lenders in secured business loan solutions, private mortgage facilities (including first mortgage and second mortgage structures), and bridging loans.
This matters when your funding solution involves multiple tranches, staged drawdowns, or a refinance that combines business and property security—because the structure needs to work as a whole, not just as a standalone mezzanine component.
Private lending
As a private lender in Australia, we can consider scenarios that fall outside standard bank credit boxes, including layered security, time‑critical settlements, and deals that require practical assessment of the asset, the transaction, and the exit.
Why borrowers also consider non-bank options
For some transactions, non-bank business loans can provide faster decisioning and more flexibility on structure—particularly where a deal is time‑sensitive or includes a non‑standard capital stack.
Locations we service across Australia
Secured Lending is a non‑bank private lender servicing Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, and surrounding metro and regional areas. If your security or transaction is outside the CBD, we can still assess it on its merits, including regional property where appropriate.
Next steps when comparing mezzanine lenders
If you’re actively seeking mezzanine finance, focus on lenders who can give you clarity early on:
- Whether the structure is viable within your timeframe
- The likely security position and overall gearing tolerance
- How valuation will be handled and how fast it can be completed
- Required documents and decision timeline
- The repayment pathway and the conditions tied to it
At Secured Lending, we’re happy to provide guidance and requirements for mezzanine finance and discuss whether our approach, timeframes, and pricing fit your situation.
Frequently Asked Questions
1) Can you work behind an existing senior lender, and how do intercreditor issues get handled?
Yes, mezzanine finance is often second‑ranking, but the viability depends on the senior lender’s terms and whether deeds or consents are required. We’ll discuss the senior facility, security already in place, and what’s needed to ensure the structure is workable without creating settlement delays.
2) What does a “credible exit strategy” look like for mezzanine funding?
A credible exit is specific, time‑bound, and supported by evidence—such as a refinance pathway once a project is completed or stabilised, a planned sale with a realistic campaign window, or a clear milestone that changes serviceability or valuation. We’ll look closely at timing, dependencies, and contingencies.
3) How quickly can you indicate if a mezzanine structure is feasible before I invest time in a full application?
Typically, we can give an early view after understanding the purpose, security, senior debt position, and proposed exit. The goal is to confirm (or rule out) the structure early so you don’t spend time preparing documents for a deal that doesn’t fit.
4) If the valuation comes in lower than expected, what options are usually available?
Depending on the overall structure, options may include adjusting the loan amount, revising the capital stack, introducing additional security, changing the drawdown approach, or modifying the exit timeline. We’ll talk through what changes are practical before you commit to costs and deadlines.
5) Can mezzanine funds be released in stages rather than all at once?
Yes—staged drawdowns can suit construction, repositioning, or transactions with milestone‑based costs. We’ll assess what triggers each drawdown, how the senior lender’s facility operates (if applicable), and how to keep the structure clean and efficient.
6) What information makes the biggest difference to getting a fast, reliable decision?
The most helpful inputs are a clear use of funds, details of existing debts and security positions, an accurate timeline with critical dates, and a well‑supported exit plan. If there’s a senior lender involved, their indicative terms and conditions are also important because they often determine what can and can’t be done structurally.
