Secured Business Loans

Use existing assets as security to borrow money for your business

What is a secured business loan in Australia?

There are many different types of business loans, but secured loans refer specifically to those where a form of collateral is used to obtain finance. They are a convenient financial solution as they allow you to leverage existing assets such as your residential home, commercial property, or vacant land.

The use of collateral reduced the cost of borrowing with secured business loan rates significantly lower than other alternative forms of financing. At Simply Funds, we don’t require formal valuations which means you can access finance faster.

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Difference between unsecured and secured business loans?

The main difference is that a secured loan involves the use some form of collateral to obtain finance. In contrast, an unsecured loan does not require the use of physical assets as a form of security. Instead, factors such as cash flow are taken into consideration as part of the lending criteria.

There are several advantages associated with secured business loans. Secured loan interest rates are lower, they offer longer repayment terms, make it easier to obtain finance, and generally allow you to borrow a larger amount.

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What can be used as security for a secured business loan?

The associated benefits with secured loans make them a very desirable option for small businesses. From our experience we have found that many businesses are unaware that they assets which can be used as security. They include:

Real Estate

This is the most common form of collateral and the one which is the easiest to obtain finance with. As a high value asset that holds value well, real estate provides the best prospects of securing a loan for a substantial amount. The amount will depend on the equity available in the property, along with the location and type.

Increase business operations

Inventory is one of the biggest expenses and it is not uncommon for many businesses to purchase inventory in advance. This is especially the case for seasonal and remote businesses. Obtaining the funds required to increase your operating capital can help maximise the sales potential of your business.


Can include equipment, machinery, motor vehicles and physical business assets. The value, condition, and liquidity of the asset will all be considered. For instance, you may have unique or heavy machinery that was extremely expensive to purchase. Price is not the only factor considered and if it is difficult to find a buyer, the equipment will not be viewed as valuable.


Many businesses have a substantial amount of stock and high value products that may be used to obtain finance. Much of this is liquid with stock valuation a common procedure in the purchase and sale of businesses.


Many businesses encounter financial difficulties due to customer failing to pay their invoices on time. This hinders the cash flow of a business with accounts receivable recognised as an asset. It also highlights the importance of being diligent with your accounting ands bookkeeping.

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