Sector
Private Credit
Lender-side legal advice for non-bank lenders, credit funds and family offices — from facility documentation and security to workouts and enforcement.
Legal support for private credit lenders
A private credit transaction needs more than a signed loan agreement. The lender needs to understand who owes the debt, which assets support repayment, how its security ranks and what it can do if the facility is not repaid.
Baystone Legal acts for non-bank lenders, private credit funds and family offices deploying capital into corporate, property and other commercial transactions. We advise on senior and mezzanine lending, origination, security and recovery, with documentation shaped around the lender’s credit decision and the particular transaction.
This page focuses on lender-side work. Our Banking & Finance practice covers the broader finance offering. Borrowers and guarantors seeking advice on their own obligations can use our separate independent legal advice pathway, subject to engagement and conflict checks.
See our Banking & Finance practice for transaction and finance services, or read our latest legal insights.
Lender-side services
Private Credit & Alternative Capital
Corporate & Institutional Lending
Real Estate Finance
Fund & Warehouse Structures
Loan Origination & Structuring
Security & Risk Management
Regulatory & Compliance
Portfolio Transactions
Workouts, Restructuring & Enforcement
Document the credit decision, not just the loan amount
We translate the agreed term sheet into facility terms covering availability, drawdown conditions, interest and fees, repayment, financial and information covenants, permitted dealings and events of default. For property lending, the documents also need to reflect the project, funding stages and agreed exit.
Legal due diligence examines the borrower and guarantor entities, authority to enter the transaction, material contracts and relevant assets. Valuation, feasibility and credit assessment remain matters for the lender and its financial or technical advisers. Legal documentation cannot remove the commercial risk of lending.
Security, registration and competing creditors
The security package may include land mortgages, general or specific security, guarantees and share security. We consider asset ownership, existing encumbrances, registration requirements and the consents needed before funding. A PPSR registration and a land mortgage registration perform different functions.
Where another financier is involved, priority and intercreditor terms should address payment order, enforcement control, standstill periods and release mechanics. Registration alone does not establish that a security interest is valid, first-ranking or sufficient to cover the debt.
Plan for amendments, distress and enforcement
Extensions, additional advances and changes to security should be documented against the existing facility, guarantees and priorities. If a position becomes distressed, we review defaults, notice requirements, available remedies and any insolvency restrictions before recommending a recovery approach.
A workout, negotiated repayment, appointment or court process may be appropriate depending on the documents, assets and circumstances. We advise on the legal options; no recovery amount or enforcement timetable can be guaranteed.
Prepare for your lending enquiry
Start with the term sheet, proposed borrower and guarantor structure, asset and existing security details, facility purpose and intended funding date. Tell us about other lenders, required consents and any known dispute or repayment concern so we can identify the relevant legal work.
Licensing, disclosure, privacy and anti-money laundering obligations need a separate assessment of the actual activities and structure. A business-purpose label or declaration is not a substitute for checking the facts.
Baystone Legal
Discuss your lending transaction
Tell us about the facility, security and funding stage, or the issue affecting an existing loan. We can discuss the legal scope, subject to engagement and conflict checks.
Frequently Asked Questions
Do non-bank lenders need an Australian credit licence?
The answer depends on the credit activities, borrower and purpose of the credit, not simply the label “private credit” or the borrower’s wealth. The National Credit Code can cover credit to individuals or strata corporations for personal, domestic or household purposes and residential property investment. Many business-purpose facilities fall outside that regime, but the facts and any exemption must be checked. Fundraising and financial services licensing are separate questions; wholesale or sophisticated investor status is not a blanket exemption from credit licensing.
What documents does a private credit lender need?
The package depends on the facility and assets. It commonly includes a facility agreement, mortgages or personal property security, guarantees, corporate approvals and conditions precedent. Priority or intercreditor deeds may be needed where other creditors hold security. We assess execution, registration and consent requirements alongside the documents; a standard template may not address a particular structure or asset.
Does registering on the PPSR guarantee first priority?
No. Attachment, enforceability, perfection, the type of collateral, registration details and timing can all matter under the Personal Property Securities Act. Existing interests and special priority rules also need consideration. Real property mortgages are registered through the relevant land titles system, not the PPSR. Searches and registration are part of a wider security review.
Can a lender enforce immediately after a missed payment?
Not necessarily. We need to examine the default provisions, notices, cure periods, security terms and applicable law. Insolvency processes and statutory restrictions may affect enforcement. A negotiated workout may be preferable in some cases. The available remedy and timing depend on the facts, and legal advice should be obtained before taking action.
Do you also provide independent advice to borrowers and guarantors?
That is a separate service with a separate engagement and conflict assessment. Lender-side advice protects the lender’s position; independent advice explains a borrower’s or guarantor’s own obligations and risks. We cannot act for opposing parties where a conflict prevents it.
Our Team
Lawyers with expertise in this area
Victor Asoyo
Partner
Phil Hustler
Partner | Head of Banking & Finance
Jay Kim
Special Counsel
Pauline Tay
Special Counsel
Lamis Adam
Special Counsel
Robin Liu
Associate
Tiffany Yan
Solicitor