Business equity loans

Use the equity in your home or commercial property to take out a business loan.

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A business equity loan is a type of secured business loan. With it, you can use the equity in your home or commercial real estate as security against a business loan. This will give you access to lower interest rates. These loans are available for both established and new businesses.

BOQ SME Recovery Loan Scheme Business Loan

BOQ SME Recovery Loan Scheme Business Loan

  • Government backed
  • No fees
  • General use
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BOQ SME Recovery Loan Scheme Business Loan

This Australian Government backed business loan is designed to help your business recover from COVID19 lockdowns. Eligibility requirements apply.

  • Loan security: Secured
  • Upfront fee: No approval or administrative fees
  • Minimum loan amount: $20,000
  • Maximum loan amount: $5,000,000
  • Maximum loan term: 1 year
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Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
BOQ SME Recovery Loan Scheme Business Loan
$20,000
$5,000,000
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. An Australian Government backed business loan to help businesses recover from the Coronavirus pandemic.
Swoop Finance Business Loan
$18,000
$90,000,000
3 months to 30 years
Depending on your loan contract
Apply online and borrow between $18,000 and $90,000,000. Options for good and bad credit borrowers.
Zip Business Loan
$10,000
$500,000
Up to 5 years
No establishment fee
Borrow up to $500,000 with loan terms of up to 5 years. Flexible weekly, fortnightly and monthly repayment options available with no early repayment fees.
ANZ Unsecured Business Loan
$10,000
No maximum amount
1 to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
Lumi Unsecured Business Loan
$5,000
$300,000
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
ebroker Business Loan
$5,000
$5,000,000
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
ANZ Secured Business Loan
$10,000
No maximum amount
1 to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
Prospa Business Loan
$5,000
$500,000
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
Moula Business Loan
$5,000
$250,000
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Max Funding Unsecured Business Loan
$3,000
$30,000
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Westpac Business Loan
$20,000
$3,000,000
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.
Valiant Finance Business Loan Broker
$5,000
$1,000,000
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
ANZ Business Loan under the Government SME Recovery Loan Scheme
$5,000,000
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. Bounce back from lockdowns with a loan of up to $5,000,000 with this Australian government backed business loan. Variable rates between 2.49% p.a. and 2.99% p.a.
Octet Trade Finance
$100,000
$10,000,000
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
OnDeck Business Loans
$10,000
$250,000
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
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How does a business equity loan work?

Like a secured loan, an equity loan will require you to put up property as security to take out the loan. This can include residential or commercial real estate. The difference between an average secured loan and an equity loan is that you don’t have to own the property outright. Instead, you can use the amount of equity you own in the property to secure the loan.

Unlike other business loans, equity loans are available to new businesses granted you submit a detailed business plan as part of your application.

Like home loans, business equity loans may offer various features. These can include variable and fixed rate loan options, redraw facilities and interest-only repayments.

As with a secured loan, you run the risk of losing your property if you default the loan.

How do I know how much equity I have in my property?

Equity is the difference between your property's value and any debt you hold against it.

Most equity loans allow you to borrow up to 80% of your property’s value minus the debt you hold against it. If your residential property is worth $500,000, this means that you’ll be able to borrow $400,000 (i.e. 80% of the property’s value). If you’ve already paid off $300,000, you'll have $200,000 left on your mortgage. Once you subtract $400,000 with what you owe, you’ll be left with $200,000, which is the equity you can use against your property. To simplify:

  • 80% of a $500,000 home = $400,000
  • The amount of debt on the property = $200,000
  • Value minus debt = $200,000

You may need a property valuation to know exactly how much equity you have.

What are the pros and cons of business equity loans?

Pros

  • Discounted rate. As this loan is secured against your property, the risk to the lender is less. This can incentivise it to give you discounted rates and fees on your loan.
  • Access. Unlike other business loans, this loan can be used to finance a new business. Most business loans will have requirements around age and turnover of your business, which can be a barrier for young businesses looking for funding.
  • Varied loan amounts. Some lenders offer a wide range of loan amounts. This means that you can use the funds to start a small or large business, as you require.

Cons

  • Risk of repossession. If you default on your loan, the lender can repossess and sell your property to cover its costs.
  • Limited to how much equity you have. How much you’re able to borrow will depend on the equity you hold in your property. It may not meet your needs and you could find it limiting.

What mistakes should I avoid?

  • Having no business plan. If your business is new, you will need to provide a detailed business plan to get approval for a business equity loan.
  • Not comparing lenders. You don’t have to take out the equity loan with the same lender as your mortgage. It’s worth researching and comparing a number of lenders and options to find the right loan for you.
  • Borrowing more than you can afford. Ultimately, you have to pay back the loan. Borrowing more than you can afford can have severe consequences if you default.

How do I compare business equity loans?

  • Property type. Some lenders may prefer residential property to commercial property, while some may let you use either. Shortlist lenders based on the type of property they are willing to secure.
  • Loan to value of equity. How much you can borrow will depend on a percentage of the value of equity in your property. This percentage may vary for commercial and residential properties, your credit history and the lender itself.
  • Interest rates. Equity loans generally have higher interest rates than home loans. This is because the lender is taking a higher risk with a business loan. By comparing lenders, you may be able to find a more competitive loan.
  • Loan amount and loan terms. Generally, loan amounts vary from between $5,000 and $1,000,000, with loan terms of 3 months to 20 years. Check the minimum and maximum loan amounts and terms offered by the lender before you apply. How much you’re approved for will depend on your business proposal (if you’re a new business), your financial circumstances and the amount of security you’re offering.
  • Additional features. Some lenders may also offer additional features with equity loans. These include redraw facilities, a split loan option and interest-only repayments. Remember to check if there are any fees associated with these features.

How can I apply for a business equity loan?

👁 Compare lenders and loans. Look at the fees, terms and lender’s conditions and find a loan that suits you.
🔍 Once you’ve settled on a lender from the table above, click “Go to site” to visit the lender’s website.
✍ You can submit an online application. Keep all the documents required handy. This will speed up the process.

Need to manage cash flow?

If your business has outstanding invoices, invoice financing may be an option for you. It's a type of business loan that comes with reduced risk and no asset requirements or interest payments.

Compare the invoice financing products below.

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Waddle Invoice Finance
$10,000
$4,000,000
From 1 month
$0
Apply to borrow up to $4 million against your unpaid invoices and receive your approved funds within 48 hours.
Timelio Invoice Finance
$10,000
$100,000,000
Up to 4 months
$0
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
ScotPac Invoice Finance
$10,000
$150,000,000
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $10,000 in invoices.
ScotPac Selective Invoice Finance
$10,000
$1,000,000
1 to 3 months
$500
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.
Earlypay Invoice Finance
$50,000
$15,000,000
From 1 month
No set amount
Access a revolving line of credit that grows in line with your accounts receivable. Funding available from $50,000 to $15,000,000+.
Octet Invoice Finance
$100,000
$10,000,000
1 month to 2 years
No Set Amount
Convert up to 85% of your company's receivables into cash flow. The value of your receivables need to be worth at least $250,000 to be eligible.
Earlypay Trade Finance
$20,000
$15,000,000
1 month to 15 years
No set amount
Get finance for 100% of your outstanding supplier invoices. Borrow from $20,000 to $15,000,000 with Earlypay.
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