Private Mortgages Australia: equity-based business loans without serviceability tests

Plenty of business owners have equity in real estate and a sound reason to borrow, yet can’t show a bank the neat tax returns and profit figures it wants. Private Mortgages Australia (PMA) is built around that gap. It doesn’t run a serviceability test at all. It looks at what the property is worth, how much of that value the loan uses, and how you plan to repay.

PMA has operated since 2014. It acts as the exclusive mortgage manager for Primary Securities Ltd as trustee of the PMAC Trust (AFSL 224107). This profile reflects PMA’s website as at October 2026; confirm current terms with PMA before relying on them.

How PMA’s lending works

PMA’s model is simple to describe and worth understanding properly before you apply.

Feature	As published by PMA
Amount	$250k to $5m for short-term commercial loans
Security	First or second mortgage over Australian real estate
Maximum LVR	Up to 75%, lower for rural property
Term	3 to 36 months
Interest	Prepaid or capitalised, with an extension period built in
Serviceability	Not tested; financials usually not reviewed
Exit strategy	Required, and a key factor in every decision
Early repayment	No penalty, but prepaid interest isn’t refunded
Speed	Response within 4 business hours; settlement within 5 business days, subject to valuation
Not offered	Unsecured, consumer, SMSF, invoice or loan factoring

Borrowers need a genuine business purpose. Companies and trusts with a corporate trustee are treated as business borrowers, and individuals, partnerships and trusts can also borrow for business. Leasehold property and going-concern businesses aren’t accepted as security.

What PMA lends for

PMA splits its range into small business loans and property and development loans.

Small business: ATO debt relief, business purchase and set-up, equipment purchase, bridging and working capital, equity release, and refinancing or debt consolidation.

Property and development: construction finance up to $5m in metro areas (owner-builders accepted, presales not always required), construction completion, land acquisition, land subdivision, mezzanine finance for developers and builders, renovation and flip finance, and residual stock loans.

Its ATO debt product is the most specific. PMA pays the ATO in one lump sum, which it says stops further penalties and interest accruing. It lists GST and BAS, PAYG withholding, income tax and super guarantee charges as eligible, and it names businesses refused an ATO payment plan or facing enforcement among those it helps. Our page on ATO tax debt business loans explains how this compares with other ways of dealing with a tax bill, and the ATO debt calculator shows what doing nothing might cost.

Prepaid interest: a worked example

Prepaid interest is the part of PMA’s structure most likely to catch people out. PMA deducts the approval fee, legal costs and prepaid interest from the loan, and pays you the balance. The figures below are invented to show the mechanics, not PMA’s pricing.

A company owes the ATO $410k and owns an industrial unit worth $1.2m with no mortgage. It arranges a $500k first mortgage for 12 months.

• Loan amount: $500,000
• Less approval fee, legal costs and 12 months’ prepaid interest, say $70,000 in total
• Cash released: $430,000, enough to clear the ATO debt with a small buffer

Three things follow:

1. Size the loan to the net figure you need, not the gross. Ask PMA for the exact deductions before you agree an amount.
2. Repaying early saves less than you’d think. There’s no penalty, but prepaid interest for the prepaid term isn’t refunded.
3. The repayment burden is light during the term, because the interest is already paid. The real test is the exit at month 12. In this example, the business planned to refinance with a bank once its overdue tax returns were lodged.

Our glossary entry on prepaid interest goes into the wider pros and cons. Weighing an equity loan like this against an ATO payment plan? Ask us to sanity-check the numbers before you commit to either.

Who PMA suits

• Owners with property equity but untidy paperwork, such as overdue tax returns, recent losses or a business that’s hard to explain on paper.
• Businesses with ATO debt that want the debt cleared in one hit and a set period to fix the underlying problem.
• Developers and builders needing construction, completion, land or residual stock funding up to about $5m.
• Buyers of a business or equipment who can secure the purchase against real estate.

Less suitable for anyone needing under $250k, anyone without real estate, SMSF trustees, and borrowers without a believable exit.

As ever, a bank is likely to be cheaper if your financials are in order and you can wait for its process, so it’s worth asking there first. PMA’s place is where the bank needs paperwork you can’t yet provide, or needs weeks you don’t have.

Questions worth asking PMA

• What is the net amount I’ll receive after all deductions, and what is the total dollar cost over the term?
• How long is the built-in extension period, and what happens after it?
• If I hold a second mortgage, will my first lender’s consent be needed and how long might that take?
• What maximum LVR applies to my property type and location? (Rural is lower.)
• What evidence of my exit will you want to see: a refinance pre-approval, a sale contract, or something else?

You can confirm a lender’s licence on ASIC’s professional registers, and if a dispute with any business lender can’t be resolved, the Australian Small Business and Family Enterprise Ombudsman can point you to the right next step.

If PMA isn’t right, other options

• Less than $250k: a caveat loan or a smaller second mortgage business loan can start from $20k.
• No property: unsecured business loans lean on your sales history and account conduct instead.
• Paperwork is the main issue: no doc business loans explains how equity-based lenders assess you.
• ATO debt with a payment plan option: see business loan vs ATO payment plan.

Other private lenders with profiles here include Equity-One, which publishes loans from $50k, and Aquamore, which deals only through brokers.

Equity but no paperwork? Start with a quick conversation

PMA proves that a lender can say yes on equity and a sensible exit when the tax returns aren’t ready. It isn’t the only lender working that way, and the right one for you depends on loan size, your property and how you’ll repay.

We’ll help you work out which. The form is a minute or so of your time, and enquiring doesn’t touch your credit score in any way. Your file isn’t circulated round the market in the hope that someone bites. A real member of our team reads your circumstances and calls to discuss them. Honest answers about the property, your debts and your exit plan mean the option we raise first is the one most likely to get approved.

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