Question 1

What is a B-Note investment and how does it work?

Accepted Answer

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.

Question 2

What's the difference between first and second mortgage investments?

Accepted Answer

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.

Question 3

What is the minimum investment amount and what are the terms?

Accepted Answer

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.

Question 4

How does Equity Access differ from traditional mortgage funds?

Accepted Answer

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.

Question 5

How is my capital protected in these investments?

Accepted Answer

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.

Question 6

What happens if a borrower defaults on their loan?

Accepted Answer

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.

Question 7

What types of properties secure the investments?

Accepted Answer

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.

Question 8

How do you manage property valuation risks?

Accepted Answer

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.

Question 9

What returns can I expect from private credit investments?

Accepted Answer

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%.

Question 10

How are returns distributed and when?

Accepted Answer

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.

Question 11

How does private credit performance compare to other investments?

Accepted Answer

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.

Question 12

What is your track record and performance history?

Accepted Answer

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.

Question 13

Can I invest through my Self-Managed Super Fund (SMSF)?

Accepted Answer

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.

Question 14

What are the tax implications of private credit investments?

Accepted Answer

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.

Question 15

How does this fit into my overall investment portfolio?

Accepted Answer

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.

Question 16

What is the application and approval process?

Accepted Answer

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.

Question 17

What ongoing reporting will I receive?

Accepted Answer

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.

Question 18

What regulatory protections apply to these investments?

Accepted Answer

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.

Question 19

Who qualifies as a wholesale or sophisticated investor?

Accepted Answer

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.

Question 20

How liquid are these investments?

Accepted Answer

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.

Question 21

What are the exit strategies for each loan?

Accepted Answer

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.

Question 22

Can I reinvest my capital when loans mature?

Accepted Answer

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.

Question 23

Are there commission clawbacks?

Accepted Answer

No. Equity Access does not impose commission clawbacks of any kind. Full upfront commission is paid at settlement with no ongoing obligations or clawback periods.

Question 24

What support do brokers receive?

Accepted Answer

Every broker receives dedicated BDM support, comprehensive marketing materials, regular training sessions, and direct access to decision-makers for complex scenarios.

Question 25

How does the white-label solution work?

Accepted Answer

Our white-label platform allows high-volume partners to offer lending under their own brand, with custom documentation, dedicated credit authority, and revenue sharing arrangements.

Question 26

What are the referral fee structures?

Accepted Answer

Standard upfront commission is 1.2% of loan amount, paid within 24 hours of settlement. Volume-based bonus structures available for high-performing partners.

Question 27

How quickly are scenarios assessed?

Accepted Answer

Initial scenario assessments provided within 24 hours. Complex scenarios receive same-day response from dedicated BDMs with direct decision-maker access.

Question 28

What types of scenarios work best?

Accepted Answer

Property development projects, high-LVR investor scenarios, business owner equity access, and complex transactions that don't fit traditional bank criteria.

Question 29

Is accreditation required?

Accepted Answer

Yes, we require current broker licence verification and completion of our partner application process. Training and system access provided upon approval.

Question 30

What geographic areas are covered?

Accepted Answer

NSW, Victoria, ACT, and SE Queensland metro and major regional areas. Opportunistic approach to Perth and Adelaide for larger transactions.

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