Secured Business Loan

What is a Secured Business Loan?

A Secured Business Loan gives you fast, flexible finance to build your business and maximise your growth potential.

A secured business loan is backed, and or supported by collateral such as property or other assets. Because the security guarantees the loan amount, interest rates are lower, and borrowing amounts can generally be higher than an unsecured loan. This makes it ideal for raising working capital, purchasing a commercial property, income-yielding assets, and expanding or re-financing your business.

Businesses that commonly use a Secured Business Loan

  • Building & Construction
  • Manufacturing
  • Catering & Hospitality
  • Cleaning companies
  • Courier services
  • Engineering shops
  • HVAC technicians
  • Automotive
  • Removalists
  • Mining
  • Medical 
  • IT Companies
  • Professional services
  • Tradies

Benefits of a Secured Business Loan

There are many reasons why a secured loan might be the best option for your business.vLenders are more inclined to lend you money if you offer collateral, giving you more choice and flexibility when evaluating loan amounts, interest rates, and terms.

Borrow bigger loan amounts against assets

Lenders automatically take on less risk when assets are offered as security. This makes them more willing to lend larger amounts than an unsecured loan. Sometimes, it’s possible to borrow up to 100% of the net worth of asset(s) you put up as security against your loan.

Lower interest rates than unsecured loans

Because lenders have a solid secondary source of repayment in the event of a default, their risk is reduced. As a result, they generally offer lower interest rates and a cheaper loan overall.

Longer loan terms for lower repayments

Unlike unsecured business loans, secured loans allow you to spread repayments over an extended period to lower monthly payments. This enables you to ease the burden on cash flow and focus on growing your business.

Higher chance of approval

While unsecured loan approvals rely heavily on financial records, tax, credit checks, and strict eligibility criteria, secured loans have more lenient requirements because they use assets as security. With collateral, you have a greater chance of being accepted for the loan, even with a less-than-perfect credit history.

Choice of fixed-rate, variable-rate, or combination

Fixed-rate loans offer protection against rising interest rates and certainty of knowing exactly how much you need to repay over the loan term. On the other hand, a variable-rate loan means falling interest rates will lower your repayments. This option also allows you to make extra payments, reducing interest over the duration and often comes with a redraw facility to access those funds later. Some lenders offer a combination of fixed and variable-rate allowing you to enjoy fixed-rate security with the ability to pay off the variable portion of your mortgage sooner. Whether you choose fixed or variable depends on your situation and appetite for risk.

Flexible repayment options

The terms of secured business loans are often more flexible than those of unsecured loans. Many lenders offer the choice of principal and interest, interest only, or a combination of the two for your repayments. Often, you can choose between monthly, quarterly, half-yearly or even annual repayments.

How does a Secured Business Loan work?

A Secured Business Loan works like many other contractual finance or credit arrangements. Here’s how it works:

  1. Your business borrows the funds you need over a set term and repays the ‘principal’ (amount you borrow) plus interest and associated fees.
  2. You arrange regular repayments as part of your loan contract. If you don’t make your contracted repayments, the lender can repossess and sell the asset you provided as security to recover the debt.
  3. If you make all your repayments, the lender has no claim on your security assets. They are only provided as a form of insurance to lower the lender’s risk of you not repaying your loan.
  4. Once the loan is fully repaid, the lender no longer has a claim on your asset. The title reverts to you, and your business, or you could use the asset as security for another loan. Some examples of security include:

Some examples of security include:

  • Residential property/house or land
  • Commercial property
  • Equipment/stock
  • Vehicles
  • The value of your business


Step-by-step Process: How To Apply for a Secured Business Loan

A little preparation before we get together will streamline the process. Don’t worry if you’re stuck on these steps before we talk. We’ll help you sort out the details before we begin an application.

1. Know why you need a loan

Knowing what you’re borrowing for is one of the first questions a lender will ask. Is it to manage cash flow, fund business growth, or are you buying vehicles or equipment?

2. Work out the loan amount

Knowing how much you need will be straightforward if you’re buying an asset. But if you’re borrowing to cover a cash flow gap, working this out will be more involved.

3. Consider what you can afford to repay

The length of the loan will impact repayment amounts. Calculate what you can afford to repay each month by looking at past financials and completing cash flow forecasts.

4. Gather essential paperwork

Having the correct documents ready will streamline the application process. Typically you will need the following, privacy & consent statement, bank statements and Identification

5. Secure a competitive lender

Discuss your needs with us, and we’ll source the most competitive loan from our network of 30+ lenders. We’ll negotiate the best rates and repayment terms for your situation and manage the process from application to approval, keeping you informed as we go.

6. Gain approval and funds

When we’ve satisfied the loan conditions and the finance is approved, we can source a provider, help you organise your documentation, and assemble your application in as little as five business days. Funds are usually available within 48 hours of application approval.

Secured Loans vs Unsecured Loans

A secured loan requires that the borrower offers something up that it owns of value as collateral in case the loan can’t be paid back, whereas an unsecured loan allows a business to borrow money outright, at the lender’s discretion. Because the security on a secured loan acts as a guarantee for the loan amount, the interest rates for a secured loan are generally lower than for an unsecured loan.

Why Choose Cabbage Capital as Your Finance Broker?

Our founder and principal broker, Brin Hayden, brings over 20 years of experience in the commercial sector, focusing on financial solutions for small to medium Australian enterprises to provide a real impact.

“I bring a personal approach and work with you to find the best Secured Business Loan for your situation. Unlike banks or individual providers, we’re not limited to just one or two products. We source finance from a network of 30+ competitive lenders vying for your business. Then we negotiate the best rates and terms to fit you.

Secured Business Loans are a great way to grow your business, streamline cash flow or upgrade vehicles and equipment with the benefit of lower interest rates and longer terms to lower repayments. If this sounds like what you need to ramp up business or build the dream, talk to me.”

Brin Hayden

Founder and principal broker

“I bring a personal approach and work with you to find the best Secured Business Loan for your situation.”

Let’s get started

If you’d like to book a meeting to discuss your needs or start a finance application, leave your details, and we’ll get back to you within 24 hours.
Alternatively, call Brin at 0418 574 655. 

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