Secured business loans
How does a secured business loan work?
How security affects a business loan
Using collateral can sometimes help borrowers access a lower interest rate or better financing terms. It can reduce the risk to the lender who then might be able to pass on savings directly to their customers. Common types of collateral that are used as security might include commercial and residential properties, as well as capital assets that the business may own such as equipment or machinery. These types of loans differ from unsecured loans which are offered by the lender without the borrower providing collateral as security for the loan.
Prospa specialises in business financing
More than just your average lender, we are dedicated small business lenders who work to get to know you and your business, in order to provide a personalised solution. This includes tailoring repayments to match your cash flow needs as well as providing an online Customer Portal that you can use to track and manage your finance with us.
In a study of thousands of our customers done in 2018, 82% of businesses reported 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. Our customers have already rated us as #1 on Trustpilot from over 5,000 reviews submitted. To get an idea of how our previous customers have already benefited, check out their reviews today.
How could fresh finance help your business?
You may also want to check out our online Prospa blog, full of inspiration stories about local businesses just like yours as well as lots of great tips and helpful financing advice. Our recent articles including How to invest in your business when the future is uncertain provides some great advice from other business owners who have learned how to diversify and use funds like secured business loans to develop fresh ideas and business ventures.
Is your business eligible?
To be eligible for our loan products, including our secured business loans, 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/ACN and be able to provide 6 months trading history for new businesses and 3 months trading history for established businesses that you have purchased.
FAQs
Frequently asked questions
A secured business loan is a product that may be offered by a money lender, including lenders that may hold 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 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 apply for secured business loans can sometimes access larger cash amounts potentially at a better interest rate.
The types of collateral a business might be able to use to secure a small business loan include real estate properties – both residential properties as well as commercial premises – as well as other capital assets like equipment and machinery.
Yes, depending on the circumstances your own residential property may be able to be used as collateral for a secured business loan as well as other investment properties that you may own. However, using residential property as collateral for a business loan may need to be carefully considered in light of the potential consequences if the borrower is unable to repay the loan. For example, if the lender needs to enforce the security that has been provided for a secured business loan, then this may mean that the borrower could lose their home. It’s always a good idea to discuss with independent financial and legal advisors before taking a big step like this.
To be eligible for our loan products, including our secured business loans, you must be at least 18 years old and either an Australian citizen or a permanent resident with a registered ABN/ACN. You must also be able to show a monthly turnover of $5,000 or more, and at least 6 months trading history for your business or at least 3 months trading history for an established business that you have purchased.
It’s quick and easy to apply for funding from Propsa. Our online application process can be completed in just 10 minutes and successful applications can even receive funding in as little as 24 hours.
As a prudent money lender, Prospa carefully reviews and evaluates business loan applications that we receive. Every business is different and as part of our standard assessment process, we may need to review your business’s credit history along with your personal credit file.
We understand how businesses work and we are committed to helping eligible business customers achieve their goals so a dedicated loan specialist can walk you through each phase of our application process and explain how everything works. Your personal credit file is just one of several lending criteria that may be carefully reviewed by our team.
Applying for business lending from Prospa is fast and easy. If approved, you could get the cash flow injection you need to get your business moving in the right direction from the lending specialists who take the time to learn and understand what your business really needs. Apply online today or enquire about our secured business loans to find out more.
Other questions?
