Explore SMSF Home＋
Investment option
Private loans create borrower, security and repayment risk.
Loans and private credit positions create borrower, agreement, security, interest, repayment, valuation and related-party questions that need a clear evidence trail.
At a glance
A loan balance does not explain the lending position.
Borrower
Principal
Agreement
Interest rate
Security
Repayments
Maturity
Related parties
The fund should be able to see what was lent, on what terms and whether repayments remain on track.
Operating position
What sits behind a private credit position.
01
Borrower position
Keep borrower identity, relationship and loan purpose visible.
02
Agreement position
Record principal, interest, repayment, security and maturity terms.
03
Repayment position
Track payments, arrears, interest and outstanding principal.
04
Security position
Keep security documents, priority and enforcement context connected.
Evidence position
Keep the complete lending evidence together.
The loan position is easier to review when agreements, security, payments and borrower correspondence remain connected.
Loan agreement
Security documents
Borrower identification
Payment records
Interest calculations
Correspondence and review notes
Attention points
Private credit can create concentrated risk.
Default, security, liquidity, related-party involvement and valuation may all require professional attention.
01
Default risk
The borrower may fail to meet interest or repayment obligations.
02
Security quality
The existence, value and enforceability of security should remain clear.
03
Related parties
Relationships between the borrower and fund may need careful review.
04
Liquidity
The fund may not be able to recover capital when it is needed.
How SMSF Home helps
Keep the lending position visible.
01
Loan register
See borrower, principal, interest and maturity details clearly.
02
Repayment tracking
Keep payments and outstanding balances visible.
03
Security evidence
Attach agreements and security records to the loan position.
04
Professional context
Prepare cleaner information before legal, accounting, audit or advice review.
Bring the lending position home
Keep borrower, agreement, security, repayments and review context together.
Home Helper™ source and review record
Primary guidance sources
This educational summary is not a substitute for the current law, regulator guidance or advice based on the fund's circumstances. Use the primary sources below to check the rule and later changes.
- ATO - Investment strategy (opens in a new tab)
Source checked 2026-08-21
- ATO - What are the SMSF investment restrictions? (opens in a new tab)
Source checked 2026-08-21
- ATO - Valuation guidelines for self-managed super funds (opens in a new tab)
Source checked 2026-08-21
Resource version 1.0.0 / Content reviewed 2026-08-21