A Secured Business Loan is a finance product backed by collateral such as property, equipment, vehicles, or PPSR-registered assets. Lenders require security to reduce risk and often provide higher borrowing limits or lower interest rates. These loans are commonly used in Working Capital Loans, Business Lines of Credit, and Low Doc Asset Finance.

Why Secured Business Loans Matter

Secured loans allow businesses to access larger sums or lower rates by offering assets as collateral. They are essential for tradies, truckies, café owners, and medical clinics for equipment, vehicle, or property purchases.

• Access higher loan amounts
• Lower interest rates than unsecured loans
• Improved approval likelihood for businesses with moderate cashflow
• Supports asset finance, equipment upgrades, and fleet expansion

How Secured Business Loans Work

• The business applies with asset documentation and financials.
• The lender assesses value and liquidity of the security.
• A loan agreement is signed specifying repayment terms, interest, and collateral.
• Funds are released for operational or asset use.
• Collateral may be repossessed if repayments are missed.

Secured loans may also involve a Director’s Guarantee if the facility exceeds available collateral or lender risk appetite.

Related Switchboard Resources

• Working Capital Loans
• Business Line of Credit
• Low Doc Asset Finance
• Unsecured Business Loan
• Director’s Guarantee
• PPSR

Official info: business.gov.au