A word from Solomons Capital

What distinguishes Solomons Capital is not just its speed and flexibility, but its commitment to building strategic, long-term relationships with brokers and borrowers. While many private lenders focus on transactional lending, Solomons takes a portfolio-wide view of a client’s objectives, ensuring each facility is structured to support their broader financial strategy.

This is supported by Solomons Group’s integrated service model, which extends beyond private credit to include legal structuring, accounting, tax advisory, and wealth management.

With over 80 financial advisers and $4.5 billion in funds under management, the firm brings a holistic perspective to every deal, something few private lenders can offer.

Its funding capability is equally diverse. Through relationships with institutional investors, family offices, and wholesale capital partners, Solomons can provide a wide spectrum of solutions, from short-term bridging facilities to multi-year construction or residual-stock finance, without relying on a single funding line.

This breadth allows the firm to maintain credit appetite consistently through market cycles, providing brokers with confidence that funding will be available even in volatile conditions.

Private lending has come a long way over the past few years.

What was once considered a stopgap solution for borrowers shut out from traditional banks is now far more mainstream. In many cases, private lending is now helping drive development, corporate growth, and capital innovation nationwide.

The Reserve Bank of Australia (RBA) estimates the sector grew 10 per cent in 2024, outpacing broader business lending and putting the total market value at around $200 billion.

But this growth has brought increased scrutiny.

Earlier this year, the Australian Securities and Investments Commission (ASIC) called on the sector to “lift its standards” after identifying areas falling short of global benchmarks in governance, value, and transparency.

ASIC has already taken action against several funds, issuing interim stop orders in response to deficiencies in their target market determinations (TMDs).

The sector also grapples with a lingering reputation for poor practices due to the past behaviour of some operators.

Even so, the regulator has acknowledged private lending is “serving its purpose”, providing borrowers with access to capital they might not otherwise be able to secure.

Steven Galdona, director of credit and operations at private lender Solomons Capital, says fast, flexible funding is precisely the type of solution the sector is designed to deliver.

“Borrowers under pressure don’t just need funding, they need certainty, support and speed,” he says.

“Our role is to deliver that without unnecessary complexity or delay. We work directly with brokers and borrowers, so deals don’t get lost in layers of approvals.

“We are the decision maker, so you don’t waste time.”

Filling the void

The emergence of private lenders dates back to the period after the global financial crisis (GFC), when larger, more established banks tightened their lending criteria.

This created a gap, most notably for businesses in construction, small and medium-sized enterprises (SMEs), and borrowers without traditional income verification.

Private lenders stepped into this void, and several structures have emerged.

Some firms have no gearing, raising money solely through investors. Others are funded by institutional backers such as hedge funds.

Solomons Capital, for example, raises capital from high-net-worth individuals and institutional investors, aiming to provide a lending solution that blends responsiveness and pragmatism with institutional-grade credit governance.

Founder Jonathan Lee says this approach is reflected in the firm’s speed, transparency, and capacity to deliver tailored structuring solutions.

“We do not have any ongoing fees during the loan term and every transaction is managed directly by decision-makers with the authority to approve and deploy capital,” he says.

“With 24/7 loan processing and a disciplined, outcome-focused approach, we give clients and partners the confidence that what we commit to, we deliver.”

With established offices in Singapore and Hong Kong, Solomons Capital is also able to extend its reach beyond the remit typically associated with private lenders.

“We operate across several specialist divisions, including wealth management, accounting, legal and capital solutions, which allows us to support clients and investors across every stage of their financial journey,” he adds.

“This breadth also means we can source business and create opportunities across multiple jurisdictions and service lines, connecting borrowers, investors and strategic partners through a single, integrated platform.”

Placing in private

Today, private lending is far more than a last resort, with its speed and flexibility giving brokers a powerful tool to act quickly and secure solutions for clients.

Paul Chiu, director of brokerage CLAS Financial Solutions, has worked with Solomons Capital for years and says they provide an important point of difference to the market.

“Not every private lender is the same. In fact, they are all quite different,” he says.

“Solomons Capital calls me back within the hour and we shoot through scenarios on the phone. They say, ‘Yep, sounds like something we can do’. I shoot them a quick, brief summary. And they come back with pricing and a date. The quickness and turnaround are really important.

“Sometimes, a client needs to jump on an opportunity, otherwise they’re going to miss out.”

He says these qualities make the segment especially well-suited to developers.

“A developer client looking to purchase a site, for example, that process could take one to two months. Whereas if you go through a private lender, as long as the client is of good standing, they’re not going to do that. You’ve got to experience the journey,” he says.

“Private lenders can approve clients very quickly.

“It’s for those scenarios when you need a fast, flexible solution.”

Lili Barron, Solomons Capital’s national business development manager, encourages brokers to see private lenders as a natural extension to their toolkit.

“Private credit isn’t replacing the banks, it’s complementing them,” she says.

“For many clients, it’s part of a broader capital strategy: a bridge, a growth enabler, or a liquidity solution. Our role is to make sure brokers have that option available when their clients need it most.”

What’s next?

As with any rapidly evolving space, the continued adoption of private lenders will likely see the sector continue to remain under the microscope.

ASIC issued interim stop orders against several funds in October, with its full report into the sector expected to hit desks before year’s end at time of writing.

Chiu urges brokers to research any lender they work with.

“Just because they said they want to do the deal doesn’t mean they can. We sell on that consistency and reliability. Knowing what the private lender has done in the past and whether they have the capability to fund the type of project or venture is really important,” he says.

“You don’t want to spend weeks on something and then they turn around and say ‘Oh, well we don’t like this. We don’t have enough money.’ Some private lenders may say that they just don’t have the money right now. It’s really important to know who you’re dealing with.”

As the market evolves and regulatory scrutiny intensifies, structured and sophisticated funds appear to be the best-placed to deliver solutions that complement traditional finance.

“There are a lot of operators in the market,” Chiu says.

“Those with a strong track record over the last few years will continue to flourish. Newcomers chasing quick profits will likely disappear. We’ll see mergers, consolidation, and supply-demand dynamics weeding out weaker players.”

However, brokers need to know the market and ensure the private lender they are working with is positioned to deliver solutions that benefit their clients.

“Ring around, get as much info as you can from your colleague or your peers in the finance working industry, especially those that do fit in the commercial space, just to get their perspective as brokers,” Chiu adds.

“We are peers and what one person experiences might not be unique. It might be a very common thing. So definitely ring around, ask around and do your research.”