Private Credit Refinance for Commercial Property in Australia
Guide information. Written by Ben. Published: 12 June 2026. Reviewed: 12 June 2026.
Private credit refinance for commercial property is a non-bank refinancing pathway for business owners, investors, and developers who need to replace, restructure, or stabilise commercial property debt when a standard bank refinance is too slow, too rigid, or unavailable. It is usually considered when the property has usable equity, the borrower has a commercial purpose, and there is a credible exit plan.
In plain English, private credit refinance uses specialist private or non-bank capital to refinance an existing commercial property loan. It can help with maturity pressure, tenant disruption, valuation problems, covenant issues, settlement timing, or a bank decline, but it is still debt secured against property and should not be treated as a permanent fix for weak cash flow.
For borrowers comparing options, this guide should be read beside commercial property refinancing solutions, commercial property loans in Australia, and private lending in Australia.
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At a Glance
| Question |
Practical answer |
| What is it? |
A commercial property refinance arranged through private credit, private lenders, or specialist non-bank capital. |
| Who uses it? |
Business owners, property investors, developers, and commercial borrowers with refinance pressure. |
| Common triggers |
Loan maturity, bank decline, covenant breach, valuation gap, short lease, vacancy, tax debt, or settlement timing. |
| Main lender focus |
Property security, equity, lease income, borrower conduct, documents, loan purpose, and exit strategy. |
| Best fit |
Transitional refinance where private credit buys time to sell, lease, stabilise, or refinance later. |
| Poor fit |
No equity, no exit plan, unresolved legal disputes, or a long-term cash-flow problem being hidden by new debt. |
Who This Is For
This guide is for commercial borrowers who already own or are refinancing commercial property and need to understand whether private credit could replace an existing facility. It is especially relevant if a bank has declined, delayed, reduced exposure, or asked for a repayment plan.
It is also for borrowers who own transitional assets. A property may be partly vacant, short-WALE, under renovation, recently re-tenanted, or moving through a sale or refinance process. In those situations, a mainstream bank may wait for more evidence, while private credit may assess the commercial story more flexibly.
Citation-Ready Answer: What Is Private Credit Refinance for Commercial Property?
Private credit refinance for commercial property is a refinancing structure where a private lender, non-bank lender, or private credit fund replaces an existing commercial property loan. Australian borrowers may use it when a bank refinance is unavailable, a loan maturity is approaching, a covenant has been breached, the lease profile is weak, or a property needs time to stabilise before a later bank refinance or sale. The lender usually assesses property value, existing debt, rental income, borrower conduct, loan purpose, equity buffer, and exit strategy. Private credit refinance can be faster and more flexible than bank finance, but it normally costs more and should be used with a clear repayment pathway. This is general information only and not financial advice.
When Private Credit Refinance May Fit
Private credit refinance may fit when the borrower has a real timing problem and a property-backed solution can protect value. The strongest cases are not vague requests for cheaper money. They are specific transition plans.
A common example is loan maturity. If an existing commercial property facility is expiring and the bank will not extend, private credit may provide a controlled refinance while the borrower prepares a cleaner long-term application. This can overlap with commercial loan refinance where the goal is to restructure debt before enforcement pressure builds.
Another scenario is a property that needs to stabilise before a mainstream lender will support it. A borrower might be re-tenanting a warehouse, completing make-good works, resolving arrears, or waiting for updated financials. In that window, re-tenant then refinance strategies can be more realistic than forcing a bank application too early.
Private credit can also help after a bank decline. A decline does not always mean the asset is unfinanceable. It may mean the bank does not like the tenant risk, reporting gap, loan size, borrower history, or urgency. A broker can test whether private commercial loans after bank decline or a refinance pathway is more appropriate.
When Private Credit Refinance Is Usually Not the Right Tool
Private credit refinance is usually not suitable when there is no credible exit. If the borrower cannot explain how the loan will be repaid, refinanced, reduced, or cleared, the structure becomes risky quickly.
It is also a poor fit where the property has insufficient equity after existing debt, arrears, costs, and possible valuation haircuts. Private credit lenders still need a security position that makes sense. Flexibility does not remove the need for recoverability.
Borrowers should also be careful using private credit to cover a permanent operating loss. If the business attached to the property is losing money every month, a refinance may only delay the real decision. In those cases, business debt consolidation, operational restructuring, accountant input, or legal advice may be needed before new secured debt is taken on.
What Lenders Assess
Private credit lenders usually start with the property. They look at asset type, location, title, zoning, occupancy, lease profile, valuation evidence, and existing debt. A clean industrial asset in a liquid metro market is generally easier to assess than a specialised regional asset with limited buyers.
They then assess the borrower and the transaction. This includes business purpose, repayment history, arrears position, tax debts, director conduct, financial statements, lease documents, and the reason the existing lender is being refinanced.
Exit strategy matters as much as security. A lender may accept a short-term refinance if the exit is clear, such as a contracted sale, active refinance application, leasing milestone, debt reduction plan, or incoming capital event. For property-led scenarios, commercial property valuation for finance is often one of the first evidence points to prepare.
Private Credit Refinance vs Bank Refinance
A bank refinance is usually preferred when the property, borrower, lease income, and documentation are strong enough and there is enough time. Banks tend to suit stable, lower-risk, long-term facilities.
Private credit refinance is more useful when speed, complexity, or transition risk is the main issue. It can be more flexible around short leases, temporary vacancy, complex borrower structures, irregular income, or a recent bank decline. The trade-off is usually higher cost, shorter term, and closer attention to the exit.
Borrowers should compare the whole pathway, not just the first loan. A private credit refinance may be commercially sensible if it protects the asset for 6 to 18 months and creates a pathway to a cleaner bank refinance. It may be poor value if it simply replaces one maturity problem with another.
For a broader comparison, see private lending vs bank lending and bank vs non-bank commercial lending.
Documents to Prepare Before Applying
A strong private credit refinance file should make the transaction easy to understand. The borrower should explain what is being refinanced, why the refinance is needed, what security is available, and how the loan will exit.
Useful documents commonly include:
- current loan statements and payout figures
- title search, council rates, and ownership structure
- lease agreements, rent roll, or vacancy details
- recent valuation, agent appraisal, or comparable sales evidence
- business financials, BAS, and management accounts where relevant
- ATO or state revenue payment arrangement details if tax debt is involved
- borrower explanation of the refinance trigger
- exit evidence, such as sale campaign, refinance plan, leasing update, or asset sale plan
If the refinance is connected to a covenant breach, read commercial property loan covenant breach refinance options before approaching lenders. The explanation needs to be factual, not defensive.
Risks and Controls
The main risk is that short-term private credit becomes a rolling problem. If the borrower does not use the refinance period to improve the asset, complete the sale, lease the property, reduce debt, or prepare a bank-ready file, the next refinance may be harder.
Cost is another risk. Private credit is generally priced for speed, complexity, and security risk. Borrowers should request a written breakdown of interest, establishment fees, legal costs, valuation costs, default costs, exit fees, and minimum interest periods before signing.
Security risk also matters. Commercial property refinance can put valuable assets at risk if the borrower defaults. Directors should understand guarantees, mortgage terms, priority arrangements, and enforcement rights. This is where legal and accounting advice is often important.
The best control is a written exit plan. It should state the intended exit, required milestones, responsible parties, target timing, and fallback options. For example: complete lease renewal, provide three months of rent evidence, obtain updated valuation, refinance to longer-term non-bank facility, or sell a non-core property.
Practical Broker File Example
A business owner has a maturing commercial property loan secured by an industrial unit. The tenant has signed a new lease, but the lease commenced recently and the bank wants more income history before refinancing. The existing lender wants repayment within a short timeframe.
A private credit refinance may be considered if the valuation supports the debt, the lease terms are documented, the borrower can explain the timing issue, and the exit is to refinance after the new lease has seasoned. The broker would focus the lender submission on the property, lease, payout figure, borrower conduct, and realistic refinance milestone.
That does not mean approval is guaranteed. It means the transaction has a story a private lender can assess. If the valuation is weak or the lease falls over, the borrower still needs a backup plan.
Frequently Asked Questions
Is private credit refinance the same as private lending?
Private credit refinance is a specific use of private lending or non-bank lending to replace an existing commercial property loan. Private lending is the broader category. A private credit refinance focuses on payout, security, term, and exit strategy.
Can private credit refinance help after a bank decline?
It can sometimes help after a bank decline if the property has enough equity and the borrower can explain the issue clearly. A decline caused by timing, lease profile, or documentation gaps may be easier to assess than a decline caused by no equity or no repayment pathway.
Is private credit refinance only for distressed borrowers?
No. Some borrowers use private credit refinance for transitional assets, fast settlement, lease-up periods, or commercial restructuring. Distress can be a trigger, but the stronger files still have a controlled plan and clear exit.
What exit strategies do lenders prefer?
Common exits include bank refinance, non-bank term refinance, property sale, lease-up and refinance, business sale, debt reduction, or incoming capital. The exit needs evidence, not just intention.
How fast can a private credit refinance settle?
Timing depends on the lender, property, valuation, legal work, payout figures, and borrower documents. It may be faster than a bank process, but missing documents, title issues, or unclear exits can still delay settlement.
Does Emet Capital provide financial advice?
No. Emet Capital provides commercial lending solutions and information for eligible business borrowers. Borrowers should obtain independent financial, legal, and tax advice before making decisions.
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Key Takeaway
Private credit refinance for commercial property can be useful when a borrower needs time, flexibility, or a non-bank assessment pathway, but it works best as transitional finance with a clear exit. The refinance should protect a commercial asset, not disguise an unsolved cash-flow problem.
This article is for informational purposes only and does not constitute financial advice. Emet Capital provides commercial lending solutions to eligible business borrowers. Please consult a licensed financial adviser, accountant, or commercial finance specialist as appropriate before making any financial decisions.