Secured business loan · Business expansion finance
Secured business loan for Business expansion finance
Expansion finance is funding used to grow a business — a second location, additional equipment, more staff or an acquisition — structured so the repayment is carried by the capacity being added rather than by existing trade.
How a secured business loan works for Business expansion finance
Where property security is available, a secured business loan is by a wide margin the cheapest way to fund expansion, and the longer terms mean the repayment is far more likely to survive a slower-than-expected ramp-up. That combination — low cost and long term — is exactly what growth funding needs. The trade-off is that the property is genuinely at risk, so the expansion should be one you would still back if it took twice as long as planned to work.
The cash-flow pattern we plan around
Costs incurred immediately on new capacity while revenue from it builds over six to twelve months, with existing trade carrying the repayment in the meantime.
What business expansion finance typically fund
- Opening or fitting out a second location
- Additional equipment or fleet to take on more work
- Hiring and training ahead of contracted revenue
- Acquiring a competitor or complementary business
- Buying premises rather than continuing to rent
Secured business loan for Business expansion finance: the numbers
| Typical amounts | $50,000 – $5,000,000 |
|---|---|
| Term | 12–180 months |
| Indicative rates | 6.8% – 13.5% p.a. |
| Repayments | Monthly, principal and interest or interest-only for a set period |
| Speed | 2–6 weeks including valuation |
| Documents business expansion finance usually need | ABN and two years of financials · A written plan or projection for the expansion · Quotes, lease or contract of sale for what is being funded |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Business expansion finance
Business expansion finance is lending used to add capacity — sites, equipment, staff or acquisitions — structured with terms and repayment timing that account for the delay before new capacity generates revenue.
Ramp-up period
The ramp-up period is the time between new capacity becoming operational and it generating enough revenue to cover its own costs, during which existing trade must carry the finance repayment.
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.