Explore secured business funding options when you have an asset to offer as security. Compare potential repayments and understand what may be available for your business.
Put an asset behind a loan and the conversation with a lender shifts. Instead of relying purely on trading history and cash flow, a secured business loan lets you offer something of value, property, equipment, a vehicle, as backing. That can mean larger amounts, longer terms, or a different rate structure than you’d get otherwise.
At LoanCalculator.com.au, we help you compare secured business loans from participating Australian lenders and work out what offering security might actually mean for your options.
A secured business loan is finance backed by an eligible asset. The lender isn’t just looking at your revenue and trading record here, they also have a claim over whatever you’ve put forward as security, property, machinery, a vehicle, other business assets. Stop repaying, and the lender has recourse to that asset. That’s really the core difference from unsecured lending.
Beyond that, the mechanics are pretty familiar. You borrow an amount, pay it back with interest over an agreed term, and the asset sits there as the lender’s fallback if things go wrong. Because the risk sits differently, lenders tend to take a longer look at secured applications, weighing the asset’s value and type alongside the usual business numbers.
It’s a bigger deal than it might seem too. According to the RBA, small and medium businesses account for roughly half of all business credit in Australia. So how this segment gets financed doesn’t just affect individual loan outcomes, it shapes a fair chunk of the lending market overall.Â
What you can actually use the funds for is broader than most people assume. Working capital to cover cash flow gaps. New equipment or machinery. Vehicles for the business. Stock ahead of a busy period. Expansion, whether that’s a second site, more staff, or just more space. Some businesses use secured finance to refinance existing debt into better terms too, depending on what the lender approves.
Here’s roughly how the asset side plays out:
| Asset Type | Typical Use | Impact on Loan Terms |
|---|---|---|
| Commercial or residential property | Larger loans, longer terms | Often supports lower rates and longer repayment periods |
| Vehicles or fleet | Upgrading or replacing business vehicles | Terms usually tied to the vehicle’s useful life |
| Equipment or machinery | Buying or upgrading equipment | Term often matches how long the equipment’s expected to last |
| Other business assets | Varies by lender and value | Comes down heavily on the asset’s resale value |
None of that’s fixed, it’s more a general guide than a rulebook. What a lender will actually accept, and how they value it, differs case by case.
No single number applies here. Run some scenarios through our business loan calculator and you’ll see amounts from $5,000 up to $1 million, terms between 1 and 7 years. Handy for getting a feel for repayments, though not every lender will offer every figure shown.
What you actually qualify for tends to come down to your revenue, how long you’ve been trading, and, for secured lending specifically, what you’re offering as security and what it’s worth.Â
A higher-value asset, or one a lender sees as lower risk, can sometimes stretch a loan further or longer than the same business might manage unsecured.
It comes down to two things really, how much you’re comfortable putting on the line, and how fast you need the money.
| Feature | Secured Loan | Unsecured Loan |
|---|---|---|
| Security needed | Property, equipment or other eligible asset | Generally none |
| Typical speed to fund | Can take longer, valuation and asset checks add time | Often faster, sometimes within 24 to 48 hours |
| Interest rates | Can be lower, reflecting reduced lender risk | Can be higher to offset the lack of security |
| Typical term | Can run longer, sometimes years | Usually shorter, months rather than years |
One thing that trips people up, an unsecured loan can still come with a personal guarantee. Unsecured doesn’t mean zero personal exposure either way. If you’re still deciding between the two, our unsecured business loans page goes into that side in more depth.
Baseline eligibility looks fairly similar across lenders. Australian citizen or permanent resident, at least 18, a registered ABN with some trading history behind it.
No single factor decides it on its own. Lenders look at the whole picture, and ticking the basic eligibility boxes doesn’t mean an approval’s locked in, that’s still assessed case by case.
Past that, approval gets weighed against a few things:
Getting started isn’t complicated once you know what’s ahead.
Run different amounts, terms and rates through our calculator to see what repayments might look like.
Look at participating lenders and how their secured products differ.
Get your ABN, bank statements, financial details and asset info ready.
Complete your application with what's required.
The lender reviews it and, if approved, releases funds under the agreed terms.
Weighing up whether to put an asset behind your business loan can be hard to navigate alone. We help you understand your options, what security might mean for your terms, and what lenders may consider before you apply:
Find clear, direct answers to common questions about securing business funding with a bad credit history.
Depends on the lender, but our calculator covers amounts from $5,000 up to $1 million with terms from 1 to 7 years. What you’ll actually get comes down to revenue, trading history and the asset you’re offering.
Property, commercial vehicles, equipment or machinery, and sometimes other business assets. What’s acceptable varies from lender to lender.
The lender has recourse to the asset if repayments stop. Worth reading the specific terms of any loan before signing, including exactly what happens if payments are missed.
Some lenders will consider it, especially where a valuable asset is on the table. Others want a longer trading history first. Comes down to the individual lender’s criteria.
Depends on whether you’re comfortable offering an asset, how fast you need the funds, and what rate or term suits you. Secured tends to suit larger amounts or longer terms, unsecured business loans suit businesses that would rather not pledge assets, usually with a quicker turnaround.
Compare secured business loan options, estimate repayments, and see how offering security might work for your business before you apply.
