The booming private credit sector is becoming a key solution in addressing the housing supply crisis. An industry survey reveals that nearly three-quarters of property developers are increasingly relying on non-bank lenders to secure larger loans and kick-start their projects.

Over 70% of developers are now sourcing funding from private lenders. While non-bank loans tend to be more expensive than traditional bank financing, 95% of respondents agreed that the benefits — such as faster decision-making, higher loan-to-value ratios, and more flexible terms — make these loans a viable option.

Private lenders are playing a crucial role in helping good projects get off the ground — projects that may not have been possible otherwise. As construction costs continue to rise, loan sizes are also increasing, with the average loan now ranging from $10 million to $20 million. In fact, 75% of those surveyed reported that their loan sizes have grown over the past five years.

In October 2024, the Reserve Bank of Australia estimated that Australia had around $40 billion in private credit outstanding, which is about 2.5% of total business debt.

In Australia, the average new personal loan amount is $22,643, and the average interest rate is 13.87% per year. The average duration of a personal loan is 35.4 months, and the average age of a borrower is 36.8 years. The most common reasons for taking out a personal loan are to buy a vehicle, consolidate debt, or improve a home.

Loan commitments
In September 2024, new loan commitments for housing fell 0.3%, while personal fixed term loans rose 2.1%. Business construction fell 8.2%, but business purchase of property rose 2.9%.

Private lenders
Private lenders often offer more flexible terms than banks. Many private lenders don't consider credit scores, instead managing risk by taking security. This can be beneficial if a business has unique needs, less than optimal credit, or other circumstances that benefit from a simpler credit assessment.

At Matrix Capital Management, we specialize in providing tailored lending solutions for developers across residential, commercial, industrial, and retail sectors. We offer funding facilities ranging from $1 million to $15 million, and we’ve recently funded several larger deals.

Our team works closely with clients to ensure funding is secured promptly and efficiently.

Why Choose Matrix Capital Management
Private lenders often offer more flexible terms than banks. Many private lenders don't consider credit scores, instead managing risk by taking security. This can be beneficial if a business has unique needs, less than optimal credit, or other circumstances that benefit from a simpler credit assessment.

• Transparency & Certainty: We offer 100% transparent funding processes and ensure certainty in settlement.
• Smooth Exit & Refinancing: Our team works with you to guarantee a smooth exit or refinance, with no post-settlement issues.
• Flexible Loan Structuring: We collaborate with you from the start to ensure the loan structure meets your needs and is set up for a successful exit.

At Matrix Capital Management, we pride ourselves on flexibility and personalized service. As direct decision-makers, we control our own funds and don't have restrictive policies, giving us the ability to tailor solutions to your specific project needs.

Reach out to our friendly team today for a direct conversation about how we can support your development projects.