Private Credit Opportunities Expand in Australia — What Commercial Borrowers and Property Investors Need to Know

Private credit is emerging as a significant and growing alternative to traditional bank financing in Australia, with specialist brokers and non-bank lenders increasingly positioned to capitalise on the opportunity. For borrowers — particularly commercial and property investors — understanding how private credit works has never been more important.

What Is Private Credit?

Private credit refers to lending that occurs outside the traditional banking system. Rather than borrowing from a bank, businesses and property owners access debt capital directly from non-bank lenders, private funds, or specialist institutions. In Australia, this includes:

• Bridging loans — short-term finance to bridge a gap (e.g., purchasing a new property before selling the old one)
• Construction and development finance — funding for residential or commercial development projects
• Mezzanine finance — higher-risk, higher-return debt sitting between senior debt and equity
• First and second mortgage lending — private lenders taking security over real property

Why Private Credit Is Growing

Several structural factors are driving the rapid expansion of private credit in Australia:

1. Bank credit tightening. APRA's ongoing macroprudential oversight has prompted major banks to apply more conservative lending standards, particularly for commercial and investment lending. Borrowers who previously had bank access are finding doors closing.

2. Speed and flexibility. Private credit decisions can often be made in days rather than weeks. For time-sensitive transactions — such as property settlements with immovable deadlines — this agility is invaluable.

3. Complex borrower profiles. Self-employed individuals, property developers, and businesses with non-standard financials are poorly served by bank credit models. Private credit fills this gap with bespoke underwriting.

4. Attractive returns for capital. From an investor perspective, private credit offers risk-adjusted returns superior to bank deposits, driving capital flows into the sector.

Opportunities for Commercial Borrowers

According to Australian Broker reporting from 14 April 2026, commercial brokers who understand private credit strategies are increasingly well-positioned. Key opportunities include:

• Refinancing out of bank facilities that have become restrictive or are being called in
• Short-term bridging for property transactions where timing is critical
• Funding development projects that banks won't touch due to LVR, stage of development, or pre-sales requirements
• Private funding for businesses needing working capital beyond what traditional SME lending offers

What Borrowers Should Know Before Approaching Private Credit

Private credit is not without its considerations:

• Higher interest rates: Rates typically range from 8% to 15%+ per annum, reflecting the higher risk and speed premium
• Shorter terms: Most private credit is structured for 3–24 months, with a clear exit strategy required
• Exit strategy is critical: Lenders will want to understand how you plan to repay — whether by refinancing, selling an asset, or cash flow
• Fees: Establishment fees, line fees, and early repayment fees can be significant

Despite these considerations, for the right borrower in the right situation, private credit can be the difference between capturing an opportunity and missing it entirely.

MPFG Capital's Private Funding Solutions

MPFG Capital's Private Funding and Bridging Finance products are designed for exactly these scenarios. Whether you're bridging between properties, funding a development, or need short-term liquidity backed by real estate security, our team can structure a solution tailored to your timeline and exit strategy.

Contact MPFG Capital at finance@mpfg.com.au for a confidential discussion about private credit options.

Source: Australian Broker, 14 April 2026. This article is for informational purposes only and does not constitute financial advice.