A B-Note is the second tranche in a loan facility that sits behind the A-Note in the payment waterfall but ahead of any equity. Unlike traditional second mortgages that involve multiple lenders with conflicting interests, our B-Note structure maintains single mortgage manager control over both A-Note and B-Note positions. This ensures aligned interests and efficient security management whilst offering enhanced returns of 11-14% p.a. IRR with first mortgage security protection.

First mortgages offer lower risk with target returns of 8.5-11% p.a., providing senior security up to 75% LVR with first claim on property proceeds in case of default.

Second mortgages carry higher risk but offer enhanced returns of 12-15% p.a., sitting behind existing first mortgages with combined LVRs up to 75%. Our B-Note structure provides the best of both worlds—first mortgage security with second mortgage-style returns.

The minimum investment is $50,000, with investment terms ranging from 3-24 months and rollover options available. We offer monthly income distributions and maturity-based liquidity with advance notice requirements. Our structure accommodates high net worth individuals, SMSFs, family offices, and institutional investors seeking Australian property exposure.

Unlike pooled mortgage funds where your capital is mixed with other investors, our structure provides direct exposure to specific loans through a Special Purpose Vehicle (SPV) acting on investors' behalf. This offers greater transparency, clearer security arrangements, and the ability to understand exactly which properties secure your investment. Additionally, our single mortgage manager approach eliminates the complications and conflicting interests common in traditional multi-lender structures.

All loans are secured by registered first or second mortgages over Australian real estate, providing tangible asset backing and established recovery processes. We maintain conservative LVR ratios averaging 61% across our portfolio, require comprehensive borrower guarantees, and implement active risk management including regular property inspections and early intervention protocols.

In the event of default, our B-Note structure provides statutory rights under Australian conveyancing legislation (NSW s94 and s95, with similar provisions in other states) to take out the first mortgagee position. We have watertight intercreditor deeds and the right to buy out senior positions, ensuring efficient asset recovery. Our defensive LVR ratios provide substantial equity buffer to protect capital even in adverse market scenarios.

Our portfolio spans premium residential, commercial, and industrial properties across NSW, Victoria, ACT, and SE Queensland, with opportunistic approaches to Perth and Adelaide. We focus on well-located metro properties with strong fundamentals and clear exit strategies, avoiding speculative or regional assets that may pose higher recovery risks.

All properties undergo independent valuation by qualified, registered valuers using conservative methodologies. We maintain current market valuations and conduct regular property inspections throughout the loan term. Our average portfolio LVR of 61% provides substantial buffer against potential value fluctuations, and our short-term loan structure (6-36 months) reduces exposure to long-term market cycles.

Our target returns vary by product: first mortgages offer 8.5-11% p.a., second mortgages provide 12-15% p.a., and B-Note investments target 11-14% p.a. IRR. These returns reflect the risk profile of each product while maintaining focus on capital preservation. Historical performance shows zero loan losses since inception with a strong repeat borrower rate of 80%.

Returns are distributed monthly based on interest payments received from borrowers. Interest may be serviced monthly or capitalised and paid upfront depending on the specific loan structure. Our streamlined process ensures timely distributions, and all payment obligations are governed by legally binding loan agreements rather than discretionary dividend policies.

Private credit typically exhibits low correlation with traditional equity markets (approximately 0.3 correlation with Australian equities), providing valuable portfolio diversification. Unlike dividend payments that are discretionary, our interest payments are contractually obligated, offering greater income predictability. Research indicates private credit has delivered consistent returns through various market cycles, often outperforming traditional fixed income investments.

Equity Access has originated and managed millions in loans with zero loan losses since inception. Our conservative approach maintains an average portfolio LVR of 61%, with 92% of loans carrying full recourse and strong repeat borrower relationships demonstrating borrower satisfaction and loan quality.

Yes, our private credit investments are suitable for SMSFs seeking alternative investment diversification. SMSF investments can provide enhanced portfolio returns whilst decreasing overall risk through exposure to an asset class that is counter-cyclical to inflation and uncorrelated to equity markets. The investment provides steady income regardless of interest rate movements or equity market volatility.

Private credit investments typically generate regular income treated as assessable income in your hands or your SMSF. For SMSF investors in pension phase, this income may be tax-free. For individual investors, interest income is taxed at marginal rates. We recommend consulting with your tax adviser about specific implications based on your circumstances, particularly regarding any foreign withholding tax considerations if applicable.

Private credit can serve as a portfolio diversification tool, sitting between traditional fixed income and equity investments in the risk/return spectrum. Industry research suggests allocations of 5-15% to private credit can enhance risk-adjusted returns whilst providing steady income streams. The asset class's low correlation to traditional markets makes it particularly valuable during periods of equity market volatility.

Our streamlined process includes: 1) Initial consultation and suitability assessment, 2) Investment documentation review and signing, 3) Capital commitment and portfolio allocation, and 4) Ongoing performance monitoring and reporting. We work with both financial advisers and direct investors to structure investments according to individual requirements and risk profiles.

Investors receive regular performance updates including detailed portfolio reporting, loan-specific updates, and market insights. Our governance structure includes independent credit and investment committees to maintain institutional standards. We provide full transparency of investment performance and underlying asset quality through comprehensive monthly reporting.

Equity Access operates under Australian Financial Services regulations ensuring investor protection and regulatory compliance. All investment opportunities undergo thorough legal review and maintain appropriate documentation standards required for institutional investment. We maintain ASIC compliance, independent custodian arrangements, regular audit requirements, and comprehensive risk disclosure processes.

To qualify as a wholesale investor, you must invest at least $500,000 or provide a qualified accountant certificate confirming net assets of at least $2.5 million or gross annual income of $250,000 for each of the last two financial years. Sophisticated investors may qualify through demonstrating investment experience and understanding of investment risks.

Private credit investments are illiquid by nature, with liquidity typically available only at loan maturity. Our focus on short-term bridging loans (6-36 months) provides regular capital recycling opportunities compared to longer-duration investments. Early exit may be possible in certain circumstances but should not be expected.

Every loan is structured with predetermined exit strategies including property sale, refinancing to traditional lenders, or business cash flow repayment. We maintain active exit management including early refinance arrangements with partner non-bank lenders and contractual provisions such as sales warrants to ensure timely property disposition when required.

Yes, our pipeline of opportunities allows for capital recycling into new investments as loans mature. We provide advance notice of upcoming maturities and present suitable reinvestment options based on your investment criteria and risk profile. This enables building a diversified portfolio of loans with staggered maturity dates.