Yes, this is a common strategy. Using a residential property held in your personal name is a standard way for business owners to secure larger sums of capital at lower interest rates for their business.

The difference can be significant. A strong business securing a loan with residential property can achieve an interest rate up to 30% cheaper than an equivalent unsecured business loan. Because the lender's risk is lower, the savings are passed on to you.

The LVR is your total loan amount as a percentage of your property's assessed value. Most lenders are comfortable with a total LVR of 80% or less. Knowing this figure before you apply is crucial and a common mistake business owners make.

The most common assets are residential or commercial property. However, many lenders also accept high-value business assets such as trucks, specialised machinery, and other equipment as collateral.

While traditional banks can take 4-6 weeks, the process with specialist lenders is much faster. Once all documentation is provided, it's possible to go from application to funding in as little as 24-48 hours.

A formal application will result in a hard enquiry on your credit file. This is why it's vital to avoid making multiple applications. Using a matching service first allows you to identify the right lender without any impact on your credit score.

You can, but the loan must be paid out in full from the proceeds of the sale as part of the settlement process. The lender holds a legal interest in the property and must consent to its sale, which is an often-overlooked implication of secured finance.

They are very similar. A mortgage is a specific type of loan used to buy property. This kind of business loan uses property you already own as collateral to access capital for any valid business purpose.

For straightforward applications, funding can be approved and transferred to your account in as little as three hours. Most approvals happen within the same business day.

Yes, refinancing is a common strategy to secure a better interest rate, change loan terms, or access additional capital by drawing on any increased equity in your asset.

As long as you have been trading for a minimum of six months and can show consistent revenue, you are eligible to apply with many speA caveat loan is a type of short-term secured business loan where the lender places a caveat on your property's title. It's generally faster to arrange than a full mortgage but often comes with higher interest rates and is intended for urgent, short-term funding needs.

cialist lenders.

In most cases, yes. If the loan is used for genuine business purposes, the interest payments and any associated fees are generally considered tax-deductible business expenses. It's always best to confirm with your accountant for professional support.