Is A Small Business Loan Secured or Unsecured?
A secured business loan is usually secured to the value of other assets that the borrower owns and uses as collateral. Collateral is the value of assets a lender can claim in the event of a default on loan repayments for the secured business loan. The use of collateral can sometimes help borrowers access a lower interest rate or better financing terms as it may reduce the risk to the lender, who can pass on savings directly to the customer. Common types of collateral used include commercial and residential properties and large capital assets that the business may own, such as equipment or machinery. These types of loans differ from unsecured loans, which the lender offers without the need for collateral as asset security.
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Of our thousands of customers, 82% of businesses report that the funding they received from Prospa directly contributed to an increase in profits, and 62% of our customers said they would come back again for new funding when they needed it. [The economic impact of Prospa Lending, RFI Group, January 2029] Our customers have rated us as #1 online lender on Trustpilot in the Non-Bank Financial Service category from over 5000 reviews submitted. To get an idea of how our previous customers have already benefited, check out their reviews today.
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To be eligible for any of our flexible loan solutions, applicants must be at least 18 years of age and either Australian citizens or permanent residents in Australia. You must also have a valid ABN and be able to provide 6 months trading history for new businesses and 3 months trading history for established businesses that you have purchased.
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FAQs
Frequently asked questions
A secured business loan is usually a financial product offered by a financial services lender with an Australian credit licence to small and medium-sized businesses for typically less risk than unsecured loans owing to the use of assets as collateral. Collateral acts as a security for the repayment of at least some – sometimes all – of the loan amount should a business default on loan repayments. For this reason, borrowers who choose secured business loans can sometimes access larger cash amounts, usually at a lower interest rate. The types of collateral a business can use to secure a small business loan usually include real estate properties – both residential properties and commercial premises – and other large capital assets like equipment and machinery.
An unsecured business loan is a loan without the borrower providing assets to use as collateral to secure the loan. Prospa Loans requires no asset security upfront to access Prospa funding of up to $150,000.
We offer approved small businesses small business loans of up to $150,000 with no upfront asset security required to access up to $150,000 in Prospa funding. We offer secured business finance for up to $500,000. Choose which type of small business funding solution you’d like to take advantage of and apply online today in just 10 minutes.
After you have compared business lenders, consider choosing the options that fit most well with your current financial circumstances and the needs of your business. Every business lending option and lender can have benefits and features to recommend them. For example, your loan from Prospa Loans comes with a fixed term repayment schedule of between 3 and 36 months. When you choose a Prospa Loan, our team works closely with our business clients to ensure that we help you identify the best solution for your business. Prospa funding can help you to support your business’s stability and ongoing growth and ensure that repayments don’t put a significant strain on your cash flow.
If you’re looking for flexible, ongoing access to funds, then a Prospa line of credit might work better for you. A line of credit offers your business ongoing access to credit funds and can be ideal for covering gaps in your cash flow, particularly during periods between invoice payments. You only pay interest on the funds you use, and, just like our small business loan, funding is possible within 24 hours of a successful application.
Prospa Loans specialises in hassle-free application for business lending. Our online application process is completed in a matter of minutes, and successful applications can receive their available funds in as little as 24 hours. Our credit and application assessment process takes into consideration a complete picture of your financial circumstances.
Apply online today with Prospa Loans for competitive rates and flexible lending options designed for small businesses and the way you operate.
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