Question 1

What does Andorra Private do?

Accepted Answer

Andorra Private is a specialist commercial finance broker connecting Australian businesses with non-bank and private lenders. We arrange commercial loans, bridging finance, construction loans, and development finance for businesses and property investors.

Question 2

How is Andorra Private different from a bank?

Accepted Answer

Unlike banks, we work with a panel of over 30 lenders including non-bank and private lenders. This gives us access to flexible solutions that banks cannot offer, faster approvals, and the ability to help borrowers who may not meet traditional bank criteria.

Question 3

Do you charge fees for your service?

Accepted Answer

Our fee structure varies depending on the type and complexity of the loan. We are transparent about all costs upfront and will provide a clear breakdown of any fees before you commit to proceeding.

Question 4

How long does the application process take?

Accepted Answer

Timeframes vary by loan type. Bridging loans can be approved in 2-3 days, while more complex commercial or construction finance may take 1-3 weeks. We pride ourselves on moving quickly and keeping you informed throughout.

Question 5

What areas of Australia do you service?

Accepted Answer

We work with clients across all states and territories of Australia. Our lender panel includes national lenders as well as those with specific geographic focus areas.

Question 6

Can you help if I have been declined by a bank?

Accepted Answer

Yes, this is one of our specialties. Private and non-bank lenders have different criteria than banks. We regularly help clients who have been declined elsewhere find suitable financing solutions.

Question 7

What types of commercial loans do you offer?

Accepted Answer

We arrange commercial business loans, commercial property loans, secured business loans, short-term commercial loans, and second mortgages for business purposes. Each product is tailored to different business needs.

Question 8

What interest rates can I expect for commercial finance?

Accepted Answer

Rates depend on factors including loan type, security, LVR, and borrower profile. First mortgage rates typically start from 6% per annum, while second mortgage rates start from 1.2% per month.

Question 9

What deposit do I need for a commercial loan?

Accepted Answer

Deposits typically range from 20-35% depending on the loan type and security. Some products may accept lower deposits with additional security or stronger borrower profiles.

Question 10

Can I get a commercial loan with bad credit?

Accepted Answer

Yes, our private lender panel takes a more flexible approach to credit history than banks. While rates may be higher, we can often find solutions for borrowers with impaired credit.

Question 11

What can commercial loan funds be used for?

Accepted Answer

Commercial loans can be used for property purchase, business expansion, equipment acquisition, working capital, debt consolidation, or any legitimate business purpose.

Question 12

What is a bridging loan?

Accepted Answer

A bridging loan is short-term finance that bridges the gap between transactions - typically when you need to purchase a new property before selling an existing one, or when you need quick settlement.

Question 13

How quickly can I get a bridging loan?

Accepted Answer

Bridging loans can be approved and settled in as little as 2-3 days when all documentation is in order. This makes them ideal for auction purchases or time-sensitive opportunities.

Question 14

Do I need a deposit for a bridging loan?

Accepted Answer

Bridging loans use equity in your existing property as security, so a traditional deposit is not always required. The loan amount depends on available equity across your properties.

Question 15

What is the maximum term for a bridging loan?

Accepted Answer

Bridging loan terms typically range from 1 to 24 months. The term should align with your exit strategy, whether that is property sale or refinancing to longer-term debt.

Question 16

Can I use a bridging loan for an auction purchase?

Accepted Answer

Yes, bridging loans are ideal for auctions where you need certainty of funding and quick settlement. We can arrange pre-approval so you can bid with confidence.

Question 17

What types of construction projects do you finance?

Accepted Answer

We finance single dwellings, knockdown rebuilds, townhouse developments, apartment projects, commercial builds, and industrial construction. Projects range from single homes to large-scale developments.

Question 18

How do construction loan drawdowns work?

Accepted Answer

Construction loans are drawn in stages as building progresses. A quantity surveyor certifies completion of each stage before funds are released. This protects both the borrower and lender.

Question 19

Can I finance land and construction together?

Accepted Answer

Yes, we can structure finance covering both land acquisition and construction costs. This can be a single facility or staged approach depending on your needs and timeline.

Question 20

Do I need development approval before getting finance?

Accepted Answer

For land purchase, you can often secure bridging finance before DA approval. For construction finance, most lenders require approved plans though some will consider conditional approval.

Question 21

What is mezzanine finance for development?

Accepted Answer

Mezzanine finance sits between senior debt and equity, providing additional funding above the senior loan. It is commonly used by developers to reduce equity requirements on larger projects.

Question 22

What security is required for commercial loans?

Accepted Answer

Most commercial loans require real property security - either residential or commercial. Some products accept multiple properties or a combination of securities to achieve desired loan amounts.

Question 23

What documents do I need to apply?

Accepted Answer

Typically: financial statements, tax returns, bank statements, details of existing debts, property valuations, and project documentation (for development). Our team will provide a specific checklist for your application.

Question 24

How is commercial property valued?

Accepted Answer

Commercial properties are valued based on rental income (capitalisation rate), comparable sales, and physical condition. A professional valuation from a panel valuer is required for all commercial loans.

Question 25

Can I use residential property as security for business loans?

Accepted Answer

Yes, residential property is commonly used as security for business and commercial loans. This can sometimes achieve better rates than using commercial property alone.

Frequently Asked Questions

Working with Andorra Private

Commercial Finance

Bridging Finance

Construction & Development Finance

Security & Documentation

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