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It was a $3.5 million refinance on a commercial property in Melbourne’s inner east.
The borrower was a high-net-worth investor. He had a portfolio that would make any lender swoon.
But the key problem?
He was going through a divorce.
He needed a deal done fast.
He had just weeks to refinance or risk being forced to sell a key asset.
The broker had the deal neatly packaged, the valuation was solid, and the client was ready to sign. But the lender dragged their feet.
First, it was a slow credit approval. Then delays in legal docs. Then silence while someone from credit “went on leave.”
By the time the approval and docs finally came through – six weeks later – the client had already walked.
Not only did the broker lose their commission, but the lender lost a client who’ll never return.
Here’s why slow lending is a deal killer:
1. A lender’s delay gives borrowers cold feet
In high-stakes lending, hesitation kills momentum.
When a borrower is motivated, especially one facing a deadline, they want to feel movement.
Every day that ticks by with no update from the lender is a day when doubt creeps in.
Maybe the valuation won’t stack up. Maybe the lender isn’t really serious and has other priorities.
But we’ve all seen it.
A once-committed borrower starts entertaining other options, pulling back on communication or worse, ghosting altogether.
And once the excitement cools, it’s incredibly hard to reignite.
Speed keeps confidence high and doubt out of the room.
2. A lender’s delay creates a perception that the borrower is not committed to a deal
When a lender moves slowly (requesting documents in dribs and drabs or failing to issue terms in a timely manner), it sends a message across the deal chain that the borrower is not committed.
Solicitors, vendors, real estate agents, and private sellers – they will all start to think: “is this borrower even serious?”
The buyer (i.e. your client) looks flaky, even when it’s actually the lender that’s asleep at the wheel.
A committed borrower backed by a slow lender gets painted with the same brush.
And that perception can tank the deal before you’ve even got to documents.
3. A lender’s delay frustrates everybody
When lenders are slow, everybody gets frustrated – brokers, their borrower clients, sellers, and more.
Clients hate calling brokers for updates they don’t have.
A slow lender turns your carefully built deal ecosystem into a pressure cooker. The borrower loses confidence in you. The seller starts asking if they should relist their property. And worst of all, the whole thing becomes a battle of who gives up first.
High-value deals require precision and tempo. If the lender isn’t matching the broker’s urgency, the entire transaction becomes emotionally and commercially draining.
As a private lender, I’ve seen perfectly structured deals fall apart not because the deal didn’t work, but because the lender didn’t work fast enough.
4. A lender’s delay gives sellers a chance to find a better deal elsewhere
Let’s not pretend sellers are just waiting patiently. They have options.
And if they get even a hint that the buyer is dragging their feet (again, even if it’s really the lender delaying), they’ll quietly start talking to other buyers.
And guess what? If someone else walks in with a clean offer, proof of funds, and the ability to settle this week, your deal is toast.
Speed protects your client from getting blindsided.
5. Unexplained delays are a ‘lender red flag’
The sad reality is that some lenders take fees, issue term sheets, and then vanish.
They slow-walk the deal or hide behind vaguely explained delays.
By the time you – the broker – realise they’re not serious, your client’s deal window has closed. And your reputation is on the line.
In fact, slow response times are one of the biggest warning signs that a lender isn’t truly committed to funding. They’ve taken the upfront and gone cold, hoping you won’t chase too hard.
As a broker, you must protect yourself and your client. If it feels slow now, it’ll only get worse when the pressure mounts.
Speed is a dealmaker and a dealbreaker
Private lending isn’t just about rates and terms. It’s about fast execution.
A good lender knows how to assess risk quickly, issue terms clearly ,and move through legals without delay. They don’t stall. They don’t sit on files. They don’t make you chase.
If you’ve got a time-sensitive, high-value deal in front of you, don’t risk it on a lender that’s still “reviewing” last week’s submission.
Gee Taggar is the managing director of Archer Wealth.