Lower rates when you can offer security
Secured business loans priced on the strength of your security.
Property-backed and asset-backed business lending from 18+ lenders, with the rate, fees and total cost explained before anything is submitted.
What is a secured business loan?
A secured business loan is a lump-sum business loan backed by an asset you pledge — usually residential or commercial property, but sometimes equipment or a general security agreement over the business. Security lowers the lender’s risk, so rates are lower and terms longer than unsecured lending.
Pledging security changes the economics of a business loan. Where an unsecured facility might price in the mid-teens over two or three years, a property-backed loan for the same business commonly sits in single digits over five to fifteen years. For a $300,000 borrowing that difference is not cosmetic — it can halve the monthly repayment and materially change whether the project is worth doing.
Lenders will consider residential property (including a director’s home), commercial or industrial premises, unencumbered plant and equipment, or a general security agreement registered over the business. Loan-to-value ratios typically run to 80% on residential and 65–75% on commercial. A valuation is usually required, which is the main reason secured lending takes weeks rather than days.
The honest trade-off is exposure. If the loan fails, the pledged asset is genuinely at risk, and where that asset is the family home the decision deserves more than a rate comparison. Your broker will say plainly when the cheaper secured option is not worth the security you would have to give, and what the unsecured alternative would cost instead.
Secured business loan at a glance
| Amount | $50,000 – $5,000,000 |
|---|---|
| Term | 12–180 months |
| Rate type | Fixed or variable |
| Indicative rates (Q3 2026) | 6.8% – 13.5% p.a. · see rate history |
| Security | Secured by property |
| Repayments | Monthly, principal and interest or interest-only for a set period |
| Typical speed | 2–6 weeks including valuation |
| Best for | Businesses with property or unencumbered assets borrowing larger amounts over longer terms |
| Consider something else if | Urgent funding needed this week, or amounts too small to justify valuation costs |
| Tax | Interest on business-purpose borrowing is generally deductible. Establishment and valuation costs may be deductible over time. Confirm with your accountant. |
Advantages
- Materially lower rates than unsecured lending
- Larger amounts and terms up to 15 years
- Interest-only periods available on many facilities
Trade-offs
- The pledged asset is at genuine risk on default
- Valuation and legal costs add to the establishment fee
- Approval takes weeks, not days
How to apply for a secured business loan
- 01
Identify the security
What you can pledge, its estimated value and what is already owing against it.
- 02
Test servicing and LVR
Your broker checks lender appetite for the security type and confirms the amount that works at their LVR limits.
- 03
Valuation and settlement
The lender orders a valuation, issues formal approval, and your solicitor handles settlement.
Documents lenders commonly ask for
- ID, ABN and business financials with tax returns
- Rates notice and current mortgage statements for the security property
- Bank statements and an ATO portal statement
Lenders we compare for this
Westpac, NAB, Macquarie, Pepper Money, Banjo and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $14,415
- Total repaid (est.)
- $89,415
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is a secured business loan?
A secured business loan is business finance where a specific asset is pledged as security. The lender registers a mortgage or a security interest over that asset and can sell it to recover the debt if the loan is not repaid, which is why pricing is lower than unsecured lending.
What can be used as security for a business loan?
Residential property, commercial or industrial property, unencumbered equipment, and business assets under a general security agreement are all accepted on our panel. Property gives the widest lender choice and the lowest rates.
What LVR do secured business loans allow?
Loan-to-value ratios are commonly up to 80% against residential security and 65–75% against commercial property. Specialist and private lenders may go higher at a higher rate and for shorter terms.