---
title: Devil in the Detail
description: Since the implementations of the Royal Commission, we're noticing big shifts within the short term lending space.  Distressed Borrower's are looking for urgent short term funding, no doc loans and non-bank loans.  Secured Lending specialises in fast, short term, non-conforming loans.
image: https://blog.securedlending.com.au/hubfs/edit-137627.jpg
---

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    - [E-Book: A Brokers Guide to Fast Funds](https://info.securedlending.com.au/e-book-a-brokers-guide-to-fast-funding)

# Fast Funding Solutions

# Devil in the Detail

Posted by [Mark Hutchins](https://blog.securedlending.com.au/fast-funding-solutions/author/mark-hutchins) on Oct 18, 2018 10:02:25 AM

![Mark Hutchins](https://blog.securedlending.com.au/hubfs/Hutch%20(1)-012810-edited.png)

Find me on:

[LinkedIn](https://www.linkedin.com/in/markhutchins61)

![edit-137627](https://blog.securedlending.com.au/hs-fs/hubfs/edit-137627.jpg?width=640&name=edit-137627.jpg)

 

My last post struck a chord it would seem. I received lots of messages from brokers sick of the games that are often played in the private loan industry. 

Who would of thought #removethescumfromprivatelending could get such a response. 

The questions that I was asked following the post and the obvious increase of brokers entering this space suggested to me more education is needed. So over the next posts I will unpick this world for you that will hopefully assist you navigate it safely.

 

**Lesson 1: Term Sheets: The devil is in the detail**

At last, I hear you say, you have found a lender that wants to fund your loan. After all, they have issued a term sheet when so many other funders have said no. Why would anyone issue a term sheet for something they don’t want to do? Right? Wrong. 

For some in our industry this is just a lure to bring the borrower in. A quickly produced term sheet following no analysis is your first sign of impending problems. The lender simply accepts the values provided by the borrower (even though he knows they are inflated) quickly issues a term sheet and says ‘yes, we will give you the funds on those numbers’. So where is the catch? 

Well, to proceed with the term sheet some private lenders ask for a large upfront fee or they inflate the valuation fee so they are making money off an eventual no. They are also reducing the borrower’s options by wasting time. 

But it doesn’t stop there, buried deep in some term sheets the terms allow the lender to caveat the borrowers property if the loan values don’t stack up. Clearly the Borrower or Broker has no control here and is exposed.

Ponder that one for a minute.

The Lender can charge you where they have decided not to proceed because their valuer gave them a different figure. When valuations come in less, the cost to the borrower has gone up by establishment fees being charged and interest even when no funds have been lent.

 

**Tip 1**: When negotiating a term sheet ask the lender to amend the terms so that if the lender doesn’t proceed for the full amount due to valuation related issues, no further costs are payable.

If they say no ask yourself why? You have paid for the valuation and they send an independent party to do it? Makes no sense unless there is a plan b waiting for you. 

 

Keen to know more, check out the following links:

- [The Work Hard, Play Hard Referral Program;](https://info.securedlending.com.au/referral-program)
- [The Secured Lending Product Matrix](https://info.securedlending.com.au/product-matrix-0)
- [Download the E-Book. The Ultimate Guide to short term finance.](https://info.securedlending.com.au/e-book-a-brokers-guide-to-short-term-finance-0)

 

 

 

  #removethescumfromprivatelending

 Tags: [Short term finance](https://blog.securedlending.com.au/fast-funding-solutions/tag/short-term-finance), [short term loan](https://blog.securedlending.com.au/fast-funding-solutions/tag/short-term-loan), [the secured lending difference](https://blog.securedlending.com.au/fast-funding-solutions/tag/the-secured-lending-difference), [limited access in funding](https://blog.securedlending.com.au/fast-funding-solutions/tag/limited-access-in-funding), [banks closed](https://blog.securedlending.com.au/fast-funding-solutions/tag/banks-closed)

## SECURED LENDING

### FAST FUNDING SOLUTIONS

Secured Lending focuses on non-conforming, fast and short term funding solutions without all the games that are played in this space.  Why us?

- We have our own internal property valuation team. 
- We can settle caveats, 1st and 2nd mortgage loans within 24 hours up to $10m.
- We pride ourselves on being transparent and honest in our approach. We can generally tell you within hours if we are going to do the deal.

Our rates start at 1% per month with typical terms 3-6 months. 

 

If you have a scenario to discuss, please call us on 1300 795 175.

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### Posts by Topic

- [Short term finance (24)](https://blog.securedlending.com.au/fast-funding-solutions/tag/short-term-finance)
- [short term loan (23)](https://blog.securedlending.com.au/fast-funding-solutions/tag/short-term-loan)
- [Urgent Finance (19)](https://blog.securedlending.com.au/fast-funding-solutions/tag/urgent-finance)
- [the secured lending difference (9)](https://blog.securedlending.com.au/fast-funding-solutions/tag/the-secured-lending-difference)
- [banks closed (7)](https://blog.securedlending.com.au/fast-funding-solutions/tag/banks-closed)
- [limited access in funding (6)](https://blog.securedlending.com.au/fast-funding-solutions/tag/limited-access-in-funding)
- [liquidation (5)](https://blog.securedlending.com.au/fast-funding-solutions/tag/liquidation)
- [Working Capital (4)](https://blog.securedlending.com.au/fast-funding-solutions/tag/working-capital)
- [in-house property experts (4)](https://blog.securedlending.com.au/fast-funding-solutions/tag/in-house-property-experts)
- [ATO (3)](https://blog.securedlending.com.au/fast-funding-solutions/tag/ato)
- [Land Banking (3)](https://blog.securedlending.com.au/fast-funding-solutions/tag/land-banking)
- [opportunity (3)](https://blog.securedlending.com.au/fast-funding-solutions/tag/opportunity)
- [partly completed development (3)](https://blog.securedlending.com.au/fast-funding-solutions/tag/partly-completed-development)
- [Delayed Settlement (2)](https://blog.securedlending.com.au/fast-funding-solutions/tag/delayed-settlement)
- [outstanding tax debt (2)](https://blog.securedlending.com.au/fast-funding-solutions/tag/outstanding-tax-debt)
- [settlement (2)](https://blog.securedlending.com.au/fast-funding-solutions/tag/settlement)
- [Construction Finance (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/construction-finance)
- [Subdivisions (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/subdivisions)
- [bridging loan (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/bridging-loan)
- [cash injection (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/cash-injection)
- [default notice (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/default-notice)
- [investment property (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/investment-property)
- [winding up notice (1)](https://blog.securedlending.com.au/fast-funding-solutions/tag/winding-up-notice)

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