Secured Business Loans
A Secured Business Loan is provided for a fixed period of time and is backed by the borrower nominating an existing asset as collateral. Secured Business Loans tend to have lower interest rates and longer loan terms compared to other finance options as there is less risk for the lender.
- Borrowing capacity up to $500,000
- Lower interest rate (compared to an Unsecured Business Loan)
- Repayment terms up to 5 years
- Can be used for any business purpose
Secured Business Loans: Eligibility Criteria
Lending criteria may vary lender to lender, so we take the time to understand what your business needs. Lenders will evaluate whether the asset you have pledged as collateral is enough to cover the value of the loan in the event of a default. They will also assess suitability based on the health of your business, and may require you to provide a combination of the below as part of the application process:
- Particulars for any income the asset generates
- Copies of all sales and transfer documents confirming ownership
- Details on any existing claims over the asset (e.g. is any part of it being used as security for another loan or does it have additional owners)
- Information of any registered valuation that has been completed
- Details relating to any insurance policies taken out
