SECURED BUSINESS LOANS FUNDED BY TOMORROW

If you have a suitable asset and are searching for a business loan, a secured loan is the best alternative. With this loan type, you can submit your property as collateral or security for accessing competitive interest rates and high funding amounts. Homesec has many options for business owners to use the equity in their home for business use. The borrower can use any asset, like commercial or residential property and vacant land as collateral.

You should submit the asset documentation and additional supporting documents to the lender. However, the loan amount will not be equivalent to the security value you will submit. For instance, you have submitted a house of $600,000 as security, Homesec lends up to 75% of the value of the property less what you currently may owe on a first mortgage.

Features of Secured business lending

Let us check out the interesting features of secured business lending below.

• Interest type

You can select capitalised interest or interest only payments for secured business loans.

• Loan term

Secured loans are usually short term and can vary from one month to 2 years.

• Eligibility

Borrowers with imperfect or poor credit scores can also apply for secured loans.

• Fees and interest rates

Interest rates of secured funding are generally lower than the unsecured ones. The asset decreases the risks for the lender, and thus they offer the best competitive rates. There are also fees associated with the secured loan in Australia, including legal and establishment fees. All fees and interest can be capitalised into the loan.

• Loan amount

Since these loans are secured against collateral or security, borrowing amounts are also higher compared to unsecured funding. You can borrow a loan amount ranging from $20000 to $5million, according to your asset value.

• Application time

The application time for secured loans for bad credit can be finalised in as little as 24 hours provided you submit all the required information. However, before applying for this loan type, you should evaluate the property or asset you submit as collateral.

What asset to use as collateral for secured business loans in Australia?

While offering a property or asset as a security, the loan gets secured against the asset equity. The property that we commonly accept against secured lending includes:

• Commercial property
• Rural property
• Residential property

The LVR ratio might differ based on the security the borrower offers. For example, residential properties can get a loan of up to 75% of the property value. You also do not have to be the property owner to offer it as collateral, however that owner must have an interest in the business. You need to submit the legal documents and access to the property equity to get the funds you require. Other lenders can also consider other assets for securing the loan amount like:

• Business equipment
• Business vehicles
• Business Machinery
• Business invoices

You can use the secured business loans for any worthwhile business use like purchasing commercial property, vehicles or equipment. You can also implement the funding from this loan to expand or grow your business, purchase inventory, buy another company, working capital shortfalls, refinance debt and hire staff.

Eligibility Criteria for a secured loan

HomeSec always clearly specifies the eligibility criteria for secured lending to the borrowers. You have to meet the following eligibility criteria to get the loan approval.

• Business History

To qualify for 12 month interest only loans Homesec will require 6 months trading history, however for 1 – 6 months loans there is no history required, this is perfect for new businesses.

• Asset

You should have a property or commercial property asset to submit as a security.

• Financial stability

The lender will check the borrower’s monthly income to make sure they can repay interest only payments. In the case of a business owner, they will check your monthly business turnover. Capitalised loans do not have this requirement as there are no repayments.

Why Select HomeSec for Secured Loan in Australia?

HomeSec offers secured loans for bad credit also to help business owners expand and grow their businesses. As one of the pioneering lenders in Australia, we have assisted almost 30k businesses to date to succeed and reach their targets. Our client-centric business funding is designed to asssist a company’s growth potential. We offer borrower-friendly repayment terms and interest rates.

Unlike traditional banks or other financial institutions, secured loans from HomeSec always keep the needs of the borrowers in mind. The reason for the popularity of our secured loan includes:

• Easy and faster access to the approved funding
• Easier and free to apply with no obligations
• Dedicated and customer-centric support

So, submit your online application today or talk to one of our secured lending specialists to get the loan today!