You’re managing deadlines, suppliers who want certainty, and a balance sheet that needs breathing room. A second mortgage loan for creditor settlement can give you the capital and time to negotiate from strength. At Secured Lending, we’ve advised and assisted borrowers with creditor settlement for years and have facilitated over 200 strategic second mortgages across Australia. When timing matters, we move fast. We can coordinate same day settlement and, where documents and valuation are ready, funding within 24 hours for an urgent settlement. If you need capital to negotiate and settle creditor positions without disturbing your first mortgage, we’ll help structure a clear path: from triage to term sheet to settlement. Secured Lending can help you move fast with a second mortgage loan for creditor settlement. Assess your scenario today.
Why a Second Mortgage Works for Creditor Settlement
A second mortgage lets you access equity without refinancing your first mortgage. For creditor settlement, the advantages are practical:
- Speed and certainty: Private capital can deliver decisive timelines, helping you address statutory demands, settle ATO arrears, or close supplier agreements before penalties escalate.
- Preserve existing facilities: You keep your first mortgage in place and avoid break costs, while adding a short, targeted facility behind it.
- Stronger negotiation position: Cash in hand allows you to offer lump-sum settlements at a discount and set clear cut-off dates with creditors.
- Cost control: Compared to unsecured options, secured business loans against property are often cheaper, with interest charged only for the time you use the funds.
- Protect operations: Settle pressure accounts, release caveats, and keep trading while you complete a refinance, asset sale, or incoming equity.
When a Second Mortgage Makes Sense
Common, time-sensitive scenarios include:
- You need capital to negotiate and settle creditor positions with a firm deadline.
- You’re finalising a refinance but need bridging capital to clear arrears and tidy your balance sheet.
- You’re settling a property or business purchase and want to avoid delays caused by consent or valuation timing.
- You’re consolidating supplier balances for discounts, then moving to bank funding once statements are clean.
- You’re covering ATO payment plans, trade creditors, or lease arrears to protect supply lines and avoid legal action.
How the Funding Works
We aim for speed without surprises:
- Review: We assess equity, existing mortgage balance, and exit strategy. We confirm whether a second mortgage or short-term bridging loans suit your goal.
- Term sheet: Clear terms, fees, and timing. If your file is complete, same day settlement or funding within 24 hours may be achievable for an urgent settlement.
- Settlement: We coordinate valuation, consent (if required), and legals. Funds can be released to creditors in one lump sum or staged tranches to match negotiations.
- Aftercare: We help you manage milestones and move to refinance or sale once creditor deeds are finalised.
If your situation is urgent or an emergency, call early. A simple document checklist and upfront negotiation plan keep momentum and keep costs down.
Private Lender, Australia Wide
Secured Lending is a private lender and non-bank lender operating Australia wide — Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. We understand consent processes, caveats, and short-notice timelines, and we coordinate with your solicitor and accountant to keep the file moving. As a private lender, we can structure around real-world constraints, including partial releases, construction holds, and multiple securities.
Terms, Security, and Managing Risk
- Security: You can leverage residential or commercial property as collateral. We do not accept obscure assets as security for these facilities.
- Loan size and term: Depending on equity and exit, borrowers may borrow up to $10 million for 3–18 months, aligned to refinance, sale, or capital events.
- Pricing: Private credit is priced for speed and flexibility. Benchmarks may reference an interest rate of 11.95% alongside establishment and legal fees. We keep structures simple so you can focus on outcomes.
- Exit strategy: We agree the exit at the start — bank refinance, asset sale, or investor payoff — and track milestones so timelines stay realistic.
- Transparency: No jargon. You’ll know what gets paid, when, and to whom, before you sign.
Using Capital to Negotiate and Settle Creditor Positions
Cash changes tone. With an agreed pool of funds, you can:
- Offer discounted lump sums with clear expiry dates.
- Consolidate smaller balances into one payment to save time and attention.
- Remove legal distractions quickly — deeds of settlement, caveat withdrawals, and payment confirmations.
- Protect reputation by paying the right creditors first and sequencing others into orderly plans.
We coordinate the release of funds so your solicitor can exchange settlement deeds the moment confirmations land. The result: fewer moving parts, faster resolution, and more control over your timetable.
How We Can Help
At Secured Lending, we review, structure, and coordinate second mortgage facilities designed for creditor settlement. We move quickly, communicate clearly, and work alongside your professional advisers to protect momentum and reduce noise. We’ve provided strategic lending advice for creditor settlement in the past and can help assess your scenario.
Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions such as bridging finance, second mortgages, and caveat loans.
FAQs
Will a second mortgage affect my first mortgage?
Generally no. Your first lender’s position remains intact; we obtain consent where needed or structure to avoid disruption.
How fast can you settle?
If your file is complete, same day settlement is possible and funding within 24 hours is common for urgent matters.
What properties can secure the loan?
Residential or commercial property in Australia. We don’t accept obscure assets such as vehicles, crypto, or equipment as collateral.
How are pricing and terms set?
By LVR, property, risk, and exit strategy. Pricing may reference an interest rate of 11.95%, with terms usually 3–12 months.
What’s a typical exit?
Bank refinance, sale, or investor funds. We align the second mortgage to your next step, including future secured business loan options.
