How We Lend
Understanding how Sydney Metro Fund selects borrowers and secures every loan is central to understanding your investment. This page explains our lending criteria, our assessment process and the protections we put in place on your behalf.
Our Borrower Criteria
Sydney Metro Fund lends exclusively to established businesses in the Sydney metropolitan area. We are selective by design. Every loan we approve must be backed by real, tangible assets and assessed by an experienced mortgage originator before a single dollar is committed.
We do not lend to startups, speculative projects or businesses that cannot demonstrate clear ability to service the debt. This selectivity is not just about managing risk. It is about protecting the investors who trust us with their capital.
Our local focus is also deliberate. We know Sydney. We understand the local market, the businesses that operate within it and the assets that back them. That local knowledge is a material advantage when assessing the quality of a loan.
General information only. Not financial advice. Lending criteria may vary and is subject to change.
We do not lend to startups or unproven businesses. We focus on established operators with a track record, operating in the Sydney area where we can assess them properly.
Every loan must be secured against tangible assets. This is non-negotiable. The quality and value of that security is central to every lending decision we make.
Borrowers must demonstrate a clear and credible ability to service the loan. We assess this carefully and independently of the security assessment.
Our Assessment Process
We use experienced mortgage originators for every single loan. There are no automated systems, no tick-box approvals and no shortcuts. Here is what they look at.
Our originators assess the quality and viability of the business itself. This includes the nature of the business, its operating history, its revenue profile and the experience of the people running it. We are looking for businesses that are genuinely sound, not just businesses with adequate security.
The security behind every loan is assessed independently and conservatively. We look at the type of asset, its current market value, its liquidity and what it would realistically be worth in a forced sale scenario. We do not lend against inflated or illiquid collateral.
We assess whether the borrower can genuinely afford to repay the loan. This means looking at cashflow, existing commitments and realistic projections. A strong security position does not substitute for a borrower who can actually service their debt.
We apply conservative loan-to-value ratios across our lending. This means we lend a prudent proportion of the assessed value of the security, not its full value. This buffer is designed to protect investors if circumstances change.
Investor Protections
Every decision we make on the lending side is made with investors in mind. Here is how the structure of our lending protects the capital you place with us.
No loan is approved without real asset security. If a borrower cannot repay, the security can be realised. This is the fundamental protection behind every dollar in the fund.
We apply conservative loan-to-value ratios so there is meaningful buffer between what we lend and what the security is worth. This protects against market fluctuations and unexpected events.
Our mortgage originators have real-world lending experience. They assess each application on its merits, not just its paperwork. Experience matters when money is at stake.
We only lend where we have genuine market knowledge. Lending in markets you understand reduces the chance of errors in security valuation or business assessment.
We publish a plain-english investor newsletter every quarter. You will always know what is happening in the portfolio and how the fund is performing. No surprises.
Frank and Alexandra are available to speak with investors directly. If you have a question about a specific loan or the portfolio generally, you can call and get a real answer.
The Lending Process
This is how a loan moves from initial enquiry to funded, and what happens at each stage to protect the fund and its investors.
A business contacts Sydney Metro Fund seeking finance. Frank or an originator has an initial conversation to understand the business, the funding need and what security is available. Most enquiries are assessed informally at this stage and many do not proceed past here.
If the initial conversation is positive, a full assessment is carried out by an experienced mortgage originator. They examine the business, the security, the serviceability and the loan-to-value ratio. This assessment is thorough and takes the time it needs to take.
Loans that meet our criteria are approved with clearly defined terms including interest rate, loan term, security requirements and repayment structure. Nothing is approved that does not meet our standards. We would rather pass on a loan than expose investors to unnecessary risk.
Once settled, loans are monitored throughout their term. Repayments are tracked, security positions are reviewed and any material changes to a borrower's circumstances are assessed promptly. Investors are kept informed through quarterly newsletters and can contact Frank directly at any time.
Speak With Frank
Book a free, no-obligation conversation. Frank is happy to walk you through our lending approach, our current portfolio and any questions you have about how the fund manages risk.