How Property Can Be Used to Benefit a Business When the Bank Says No

Many businesses struggle to access the level of funding they need through unsecured loans alone. In this podcast, we explain how using property equity can help businesses secure higher loan amounts and access finance even when traditional banks say no.

The Challenge: Some businesses do not generate enough revenue to qualify for the unsecured loan amount they require. Bank criteria can also be restrictive, particularly where credit history or cash-flow documentation does not meet standard requirements.

Our Approach as a Finance Broker in Australia: As a finance broker in Australia, we assess whether property equity can be used to strengthen a business finance application. By using property as security through a second mortgage, businesses may be able to access significantly higher loan amounts than would be available through unsecured lending. In many cases, bank statements may not be required, and some lenders are willing to consider applications with imperfect credit. Approval is subject to lender assessment and criteria.

The Outcome: Using property equity allowed the business to access the funding they needed, providing a practical alternative when unsecured options and traditional bank lending were not suitable.

Key Takeaway: Property equity can be a powerful tool for businesses needing higher loan amounts. When structured correctly, it can open doors to finance options that may not otherwise be available.

FAQ: Using Property Equity for Business Finance in Australia

How can property be used to help a business get finance?

Property can be used as security to support a business loan, allowing lenders to offer higher loan amounts compared to unsecured finance. Approval is subject to lender criteria.

What is a second mortgage for business finance?

A second mortgage is a loan secured against property where an existing mortgage already exists. It allows businesses to access equity without refinancing the first loan.

Can property-backed business loans be approved with bad credit?

In some cases, yes. Some lenders place greater emphasis on property security and equity rather than credit history alone. Eligibility depends on lender assessment.

Are bank statements always required for property-backed loans?

Not always. Some lenders rely more on property equity and overall loan structure, though documentation requirements vary by lender.

Is this an option when the bank says no?

Yes. Property-backed lending can provide alternative options when traditional banks decline an application. Approval is subject to lender assessment.

Is approval guaranteed through a finance broker?

No. A finance broker cannot guarantee approval. All business finance is subject to lender assessment, eligibility, and approval conditions.