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Security

Security refers to an asset offered as collateral to support a loan. It reduces lender risk and strengthens approval chances for Business Loans, Equipment Finance, Vehicle Loans, and Low Doc applications. Related terms: Secured Loan, PPSR, Director's Guarantee. Relevant blogs: Fast-Track Asset Finance, Easiest Low Doc Equipment Loans, Equipment Finance Application Mistakes.

Why Security Matters

Security gives lenders confidence that the loan is protected if repayments cannot be met. Stronger Security helps borrowers obtain better rates, higher limits, and faster approvals across the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub.

Common Types of Security

  • Vehicles (utes, vans, trucks).
  • Business equipment and machinery.
  • Cash or term deposits.
  • Property (for some business lenders).
  • Personal guarantees from directors.

Official info: asic.gov.au

What does Security mean in lending?
It refers to an asset offered as collateral to secure a loan.
Do all loans require Security?
No — unsecured loans do not require an asset, but secured loans usually do.
Does providing Security improve approval chances?
Yes — strong Security reduces lender risk and increases approval strength.
Can personal assets be used as Security?
Yes — vehicles, equipment, property or cash can be pledged depending on the lender.
What happens if the borrower defaults?
The lender may repossess or sell the secured asset to recover losses.