Working capital loans secured by property
A working capital loan funds the gap between paying for something and being paid for it. HomeSec lends $20,000 to $5,000,000 against equity in real property, with no financial statements, no daily or weekly direct debits and no repayments for the first six months, funded 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 qualifyThe working capital gap, in arithmetic
Every business has a cycle: money goes out to buy or make or staff something, and money comes back when the customer pays. The gap between the two is the working capital requirement, and its size is not a matter of opinion. It is days of stock, plus days of debtors, minus the days your own suppliers give you, multiplied by what the business turns over each day.
| The cycle | Typical shape | What it means |
|---|---|---|
| Cash goes out | Wages weekly or fortnightly. Materials and stock on the supplier's terms. | Fixed, immediate and not negotiable. |
| Work is done | Days to months, depending on the industry. | Cost accumulating, nothing invoiced yet. |
| Invoice issued | Usually at month end, not on completion. | Up to thirty days already gone. |
| Customer pays | Thirty to sixty days from end of month, more for large customers. | The business has funded the whole period itself. |
Two things follow from that, and they surprise a lot of profitable businesses. First, growth makes the gap wider, because more work means more cost carried before more revenue arrives — which is why the most dangerous month is often the one after the best news. Second, the gap has nothing to do with whether the business is well run. It is arithmetic, and it has to be funded by someone: by the owner, by a supplier, or by a lender.
How much you can borrow
Take the property's value, multiply by 80% for residential security or 70% for commercial, and subtract what is already owing on it. What is left is roughly what is available, between $20,000 and $5,000,000. Several properties can be added together, and the borrower does not have to be the owner — companies, trusts and sole traders — including start-ups, with everyone on title signing. Up to 80% on residential and 70% on commercial. Lower on large acreage, and LVRs may reduce on properties worth less than $800,000.
Note what does not appear in that calculation: turnover. Most working capital lending is sized as a multiple of monthly revenue, which means a business gets least when its revenue has just dipped — precisely when the gap is widest. Sizing against equity removes that. A person decides every loan. 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.
Secured against property, or unsecured against turnover
Both exist, both are legitimate, and the right one depends on what you have rather than on which is better. This is the comparison worth understanding before you sign anything.
| Unsecured cashflow lender | HomeSec | |
|---|---|---|
| Assessed on | Bank statements, turnover, time trading, director credit score | Equity in real property and a business purpose |
| Repayments | Daily or weekly direct debits | Interest only, or capitalised for up to 6 months |
| Term | Fixed, commonly 3–12 months | Open — no fixed end date |
| Typical size | Tens of thousands, tied to turnover | $20,000 to $5,000,000, tied to equity |
| What the lender holds | Usually a general security agreement over the company and a director's guarantee — no property mortgage | A mortgage or caveat over one nominated property |
| Relative cost | Substantially higher, because it is unsecured | Substantially lower, because it is secured |
If there is no property anywhere in the ownership group, an unsecured cashflow lender is the right call and we will tell you so. Where there is property, the secured version is cheaper and leaves the daily cash alone, which for a business already short of it is the difference that matters most. It is also worth knowing that "unsecured" rarely means what it sounds like — most unsecured facilities are supported by a general security agreement over the company and a director's guarantee.
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. 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
What is a working capital loan?
How is a secured working capital loan different from a cashflow loan?
How much working capital can I borrow?
Do you take daily or weekly repayments?
Can I use it to pay wages?
What if my working capital gap is permanent rather than temporary?
Do I need financials or bank statements?
How quickly can it be drawn?
Can I repay it when the debtors clear?
Is invoice finance a better option?
Tell us the property, what is owing on it and how long the gap runs, and you will have an indicative figure on the call. 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.
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