Funding Connection
Secured Business Loans
Secured Business Loans
Our Secured Business Loans provide a lower interest rate but come with a stricter application process. A Secured Business Loan will allow you to nominate an existing asset (such as a property or vehicle) as security against the loan. The nominated asset would be used to recover the loan amount in a scenario where there is a default. This type of loan often has more favourable terms and conditions as there is less risk for the lender.
- Borrowing capacity up to $500,000
- Lower interest rate (compared to an Unsecured Business Loan)
- Repayment terms up to 5 years
- Can be used for any business purpose
Frequently Asked Questions
1What assets can I use as security?
You can use commercial or residential property; some lenders will also accept vehicles, equipment, or other valuable items.
2How much can I borrow?
For a Secured Business Loan you can borrow from $10,000 up to $500,000.
3What are the benefits of a Secured Business Loan?
Some of the benefits are:
- You won’t pay as much interest
- The repayment terms are longer
- Loan amounts can be higher
4What is the difference between a Secured Business Loan and an Unsecured Business Loan?
Whilst Secured Business Loans require an asset used as collateral for your loan, an Unsecured Business Loan doesn’t require security. By providing an asset you are rewarded with lower interest rates and longer repayment terms, whereas an Unsecured Business Loan typically have higher rates and shorter terms.
Secured Business Loans: Eligibility Criteria
We take the time to understand the needs of each of our clients because we know lending criteria may change from lender to lender. Lenders need to be comfortable the asset will provide enough value to cover the value of the loan, in the event of a default. To assess the suitability of the asset and the health of your business, lenders will often require you to provide a combination of the below as part of a Secured Business Loan application:
- Particulars for any income the asset generates
- Copies of all sales and transfer documents confirming ownership details on any existing claims over the asset (e.g. is any part of it being used as security for another loan or does it have additional owners)
- Information of any registered valuation that has been completed
- Details relating to any insurance policies taken out
Let's discuss your financing options
If you are looking for financing options to support your business, please give a moment of your time to let us show you how we can make the process of business funding quick, easy and uncomplicated for SMEs all across Australia.
Looking forward to your call.