Speed vs Banks: How Private Lending Wins When Time Is Critical

In today’s fast-paced business world, timing can mean the difference between seizing an opportunity and missing out entirely. When it comes to securing finance, traditional banks — with their rigid processes, endless documentation requirements, and slow decision-making — often can’t keep up.
That’s where private lending steps in.

Private lenders aren’t just an alternative; in many cases, they’re the smartest solution when time is critical. Here’s why — and real examples of how speed made all the difference.

Why Banks Are Slow (and Why It Matters)

Banks are built to be cautious. Their approval processes often involve:

• Multiple layers of credit assessment

• Rigid credit scoring models

• Heavy reliance on full financials, tax returns, and business plans

• Committee meetings that may only happen weekly or fortnightly

• Strict valuation and compliance processes

While thorough, this structure can take weeks or months to produce an answer — often too late when a property settlement is looming, urgent debt needs clearing, or a business opportunity appears.

Timing matters because:

• Settlements have legal deadlines — missing one can cause deals to collapse.

• Opportunities (like stock clearance or property bargains) don’t wait.

• Urgent debt (like ATO arrears) can escalate quickly, harming businesses.

Why Private Lending Wins on Speed

Private lenders offer:

• Direct Decision-Makers: Borrowers speak directly with the people making the decisions.

• Flexible Criteria: Focus is on the security asset and exit strategy, not perfect credit history.

• Minimal Red Tape: No need for years of financials or extensive paperwork.

• Fast Valuations: Desktop valuations or priority full valuations where needed.

• Same-Day Approvals: In many cases, conditional approvals can be given within hours.

When urgency matters, private lending is designed to deliver.

Case Studies: Speed in Action

Case Study 1: Saving a $1.2M Property Settlement

Scenario:
A client purchasing a commercial property was let down by a major bank just 10 days before settlement. The bank required additional documents and revaluations that would delay the deal by at least four weeks.

Solution:
A private lender assessed the deal based on the property's value and the client’s strong exit strategy (refinance within six months). Approval was issued within 48 hours, and funds were ready five days before settlement.

Outcome:

• Client secured the property.

• Avoided default penalties.

• Later refinanced to a bank once full financials were completed.

Speed saved the deal — and saved the client tens of thousands in potential penalties.

Case Study 2: Urgent ATO Debt Clearance to Avoid Court

Scenario:
A small business was facing court action from the ATO over $350,000 in tax arrears. Their bank wouldn't assist because the business had an impaired credit score due to missed payments.

Solution:
The private lender focused on the business’s tangible assets — two unencumbered trucks and equipment — to secure the loan. Within 72 hours, funding was provided to clear the debt.

Outcome:

• Court action avoided.

• Business continued trading without disruption.

• Broker arranged refinance six months later.

Speed preserved the client’s business and reputation.

Case Study 3: Bulk Inventory Purchase to Boost Profit

Scenario:
An importer had a once-off opportunity to purchase bulk inventory at a 40% discount, but needed $200,000 within five days to secure the stock.

Solution:
A private lender issued a Lite Doc facility, assessing only the stock invoices, recent trading history, and basic security over the new stock.

Outcome:

• Stock was secured.

• Business boosted their margin significantly during peak season.

• Loan repaid early without penalty.

Speed turned a short-term loan into a long-term profit advantage.

The Real Cost of Delays (and the Value of Speed)

While private lending may have a slightly higher interest rate compared to banks, the cost of missing a deal is often far greater:

• Lost deposits

• Missed profits

• Legal penalties

• Damaged reputation

• Business closure in worst cases

In many cases, private lending isn’t just about funding — it’s about protecting opportunity, cash flow, and reputation.

Summary

When time is critical, the question isn't "what’s the cheapest loan available?" — it’s "what’s the loan that can get me across the line?"
Private lending exists because opportunity doesn’t wait — and neither should you.

At Speedy Finance, we pride ourselves on fast, flexible funding solutions that empower brokers and clients when it matters most. If you need a lender who moves at your speed, we’re ready when you are.

Talk to us today — because sometimes, speed is everything.