Start-up business loans, with no trading history required
A start-up business loan from HomeSec is assessed on equity in real estate and a genuine business purpose — not on trading history, turnover or financials, none of which a new business has. Companies, trusts and sole traders — including start-ups, borrowing $20,000 to $5,000,000 against residential or commercial property, with no repayments for up to 6 months and funding in as little as 24 hours.
See if you qualify in sixty seconds. No credit check to apply, no financials, no payments for the first six months. That's the HomeSec Advantage.
See if you qualifyWhy every other lender says no to a start-up
Not because start-ups are bad risks — because the evidence each lender is built to read does not exist yet. A lender that assesses accounts cannot assess a business with none.
| Lender | What it needs to see |
|---|---|
| Bank | Two years of trading and accounts, plus serviceability from those accounts. A start-up has neither. |
| Unsecured cashflow lender | Six to twelve months of bank-statement turnover, commonly $120k+ a year. A start-up has no turnover yet. |
| Equipment financier | Usually possible for the asset itself, but only the asset — not working capital, not stock, not the fit-out. |
| HomeSec | Equity in real estate and a genuine business purpose. Neither depends on how long the business has traded. |
Lender categories, described generally. Individual lenders vary.
What we look at instead
Two things. What is the property worth, and how does the loan get repaid. The first is assessed by us, without a valuation, from the title and the address and what we know of the market. The second is a conversation: what the business does, what the money buys, and where the repayment comes from — trading, a refinance once the accounts exist, a sale. If both answers are sound, the age of the ABN is not a factor. Every application is read by a Lending Manager and every credit decision is signed off by a person. We do not use artificial intelligence to assess, approve, decline or price a loan.
What start-ups use it for
- Fit-out, stock and the first three months
- The lease is signed and the doors open in six weeks. The money for the fit-out, the opening stock and the wages until revenue arrives, against the equity in your home, with no repayments for six months.
- Buying an existing business
- A going concern — a café, a workshop, a practice — where the vendor wants settlement in weeks and a bank wants the buyer's non-existent trading history. Secured by the property you already own, or the premises if they come with it.
- A franchise
- Franchisors move fast and banks do not. The franchise fee, the fit-out and the working capital, against your property, on the franchisor's timetable.
- A new entity for an established operator
- You have run businesses before; this one has a new ABN and a two-week-old bank account. Every other lender sees the ABN. We see the property and the person.
- Plant and equipment where the financier will not
- Second-hand, specialised, imported, or simply too new a business for the asset financier's policy. A secured loan buys what an equipment loan will not.
Using your home as security for a new business
For most start-ups this is the file, and it deserves a plain paragraph rather than a euphemism. The business borrows against the equity in your home. If the business repays the loan, nothing happens to the home. If the business cannot, the home is the security, and that is what a secured loan means. We will say this on the first call, we will decline a file where the business case does not hold, and we would rather lose the loan than fund a bad idea against a family's house. First or second-ranking mortgage. Cross-collateralisation across multiple properties. Your home can be the security.
We can fund the purchase of a commercial property, in a personal name or a company name, and the purchase of a residential property in a company name. We cannot fund the purchase of a residential property in a personal name: credit for that purpose is regulated consumer credit under the NCCP Act, and HomeSec lends for business and investment purposes only.
From the call to the money
Tell us the deal
Amount, purpose, timing, the property and how the loan gets repaid. A Lending Manager gives you an indicative answer on that call — usually in minutes.
Minutes
Conditional approval
Photo ID, a rates notice and your most recent mortgage statement. That is the whole list, and it takes about fifteen minutes.
About 15 minutes
Funds released
As little as 24 hours from a clean, complete scenario. Paid where you tell us — to your account, or straight to the ATO.
As little as 24 hours
What it costs
Priced per file, on the property, the position, the amount and the exit — not on the age of the business. No rate is published, because a rate with "from" in front of it is the best file's number. How it is priced, and every fee that exists.
Questions we get on the phone
Can a start-up get a business loan in Australia?
Do I need a trading history?
Do I need a business plan or projections?
What can I use as security?
How much can a start-up borrow?
What does 'genuine business start-up' mean?
Can I use the loan to buy premises for the new business?
What if the start-up fails?
Is it interest-only?
How fast?
Tell us what the business does, what the money buys, what property is available and how the loan gets repaid. Two minutes, and you will have an indicative answer. 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.
Private lending since 2004. A new business borrows the same way an old one does — against property.
See if you qualify in sixty seconds
Three short questions, no credit check to apply and no financial statements. A Lending Manager reads it and calls you back with a real answer — not a call centre, not an algorithm.
That's the HomeSec Advantage.
Reviewed by Catriona Anderson, General Manager