Secured Business Loans
Secured Business Loans Australia: Compare 60+ Lenders and Lower Rates
Putting up property or a business asset as security is the single biggest lever for reducing your business loan interest rate and increasing how much you can borrow. A secured business loan trades some flexibility for meaningfully better terms, and it is the structure most businesses use once they need a larger amount or a longer term than an unsecured facility allows. Lodestar Finance compares secured business loan options across 60+ Australian lenders to find the structure that makes the best use of the security you’re offering.
Lodestar Finance Pty Ltd · Credit Representative (CRN 571879) of Purple Circle FS · Australian Credit Licence 486112 · 60+ Lenders Compared
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How Secured Business Loans Work in Australia
Type of Security Offered
Residential property, commercial property, and business assets such as equipment or vehicles are all commonly accepted as security, though property generally unlocks the most competitive rates and largest loan amounts.
Loan to Value Ratio
Lenders will only lend up to a set percentage of the security's value, commonly 65% to 80% for property, which sets the ceiling on how much you can borrow against a given asset.
Valuation Requirements
Property offered as security is generally valuated by the lender before approval, which adds time to settlement compared with an unsecured facility but supports a lower interest rate.
Loan Term Length
Because the lender's risk is offset by the security, secured business loans can run considerably longer than unsecured facilities, in some cases 15 years or more against commercial property.
Our Lenders
Why a Broker, Not Just a Bank
Every lender values the same security differently and applies different loan to value limits, meaning the exact same property can unlock a materially different loan amount and rate from one lender to the next. Under the Best Interests Duty, a broker is required to compare that spread on your behalf, rather than steering you toward whichever bank they already have a relationship with. That comparison is where the real savings in secured lending usually come from.
Who's Eligible for a Secured Business Loan?
- An active ABN and a business that can service the proposed repayments from trading income
- Property, equipment, or another qualifying asset to offer as security, generally with equity above what is being borrowed against it
- A reasonable credit history for the business and its directors
- Sufficient trading history to satisfy the lender, though secured lending is often more flexible on this than unsecured facilities given the security offered
What Can You Use a Secured Business Loan For?
Secured business loans suit larger, longer term funding needs: purchasing commercial property, buying out a business partner, funding a significant expansion, or refinancing existing business debt onto better terms. If your need is smaller or shorter term, our Unsecured Business Loans page may be the better starting point.
CALCULATORS
Get a Real Number in Under a Minute
Run different loan amounts and terms through our Business Loan Repayments calculator, and read our Business Loan Interest Rates guide to understand where secured pricing typically sits relative to unsecured lending.
With Lodestar Finance
You don’t have to figure it out alone! We'll help you with:
Valuing your options properly
comparing how different lenders treat the same security before you commit to one.
Structuring the loan to term
balancing a lower rate against how long you’re comfortable being tied to the security.
Managing the valuation process
so property assessment doesn’t stall your settlement longer than it needs to.
Comparing secured against unsecured
so you only put an asset on the line when it genuinely improves your outcome.
Testimonials
Amazing Reviews From Our Clients
Jake Wilson
Went through Lodestar Finance for my home loan and it was honestly a really good experience. No pressure, no confusion. They just explained things properly and got it done. Would use them again.
Lauren McKay
I was expecting the whole loan process to be a headache, but it wasn’t. Lovepreet handled most of it and kept checking in so I knew where things were at. Made life a lot easier.
Tom Reynolds
Everything was pretty straightforward and communication was solid the whole way through. Saved me money too, so no complaints.
Gurpreet Singh
As a first home buyer I had no idea what I was doing. The team at Lodestar were patient and answered all my questions without making me feel silly. Really appreciate that.
Chloe Bennett
Really easy to deal with and super responsive. If I had a question, they got back to me quickly. Didn’t feel stressed at any point, which says a lot.
Rohan Patel
The process was smooth from start to finish. Nothing dragged on and everything was explained clearly. Overall just a solid, reliable experience.
Secured Business Loan Types You Can Choose From
Commercial Property Secured Loan
Uses commercial real estate as security, typically unlocking the largest loan amounts and longest terms.
Residential Property Secured Business Loan
Uses residential property equity, often the director's own home, to secure business finance, commonly used by smaller businesses without commercial property to offer.
Business Equity Access Loan
Draws on equity already held in property to fund business purposes without a separate purchase transaction.
Asset Secured Loan
Uses business equipment, vehicles, or other assets rather than property, suiting businesses that own valuable equipment but not property.
Low Doc Secured Business Loan
For businesses that cannot provide full financials, some lenders will still lend against strong security with reduced documentation.
Secured Line of Credit
A revolving facility secured against property or assets, allowing funds to be drawn and repaid as needed rather than as a single lump sum.
FAQs
Frequently Asked Questions
Generally yes, since the lender's risk is offset by the security. On Reserve Bank of Australia lending data, average business borrowing costs sit well below typical unsecured rates once secured lending is factored into the blend.
The lender has the right to recover the debt from the security offered, which could include selling the property or asset. This is the key trade off against the lower rate and should be weighed carefully before offering property as security.
Yes, many lenders accept residential property, including a director's personal home, as security for a business loan. ASIC's Moneysmart has independent guidance on the risks of using your home as security worth reading before proceeding.
This depends on the value of the security and the lender's loan to value ratio, commonly 65% to 80% of a property's value, though it varies by lender and asset type.
Sometimes, particularly where the security offered does not fully cover the loan amount. Our Business Loan Requirements guide covers eligibility and documentation in more detail.
Ready to Compare Secured Business Loan Options Australia Wide?
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