Quick answer
Yes, you can get a business loan without owning property. Unsecured lenders size loans on turnover and bank statements, typically $5k to $500k, while equipment, vehicle and invoice finance are secured by the asset or invoices being funded. In place of property, lenders lean on trading history, cash flow, a director's guarantee and sometimes a general security agreement over business assets registered on the PPSR.
Key points
- Unsecured, asset and invoice finance all work without real estate
- Without property, your bank statements and trading history carry the whole application
- Unsecured usually still means a director's guarantee, and sometimes a charge over business assets
- Read guarantees for a charging clause that can let a lender lodge a caveat on property you buy later
A lot of capable owners rent where they live and lease where they work. Younger owners, recent arrivals, people who sold a house to start the business, people who simply prefer not to tie their home to their work. When a bank asks “what security can you offer?” and the honest answer is “none in property”, it can feel like the conversation is over.
It isn’t. A large share of Australian business lending never touches real estate. What changes is what the lender relies on instead, how much it will lend, and what you’re signing.
What replaces property in a lender’s mind?
Property does one job for a lender: it’s a fallback if repayments stop. Without it, the lender needs confidence from other places.
| Stands in for property | Evidence the lender looks for |
|---|---|
| Cash flow | Consistent deposits, healthy balances, no run of dishonours |
| Trading history | Usually at least 6 to 12 months under the same ABN, longer for bigger amounts |
| The asset being bought | Equipment, vehicles or machinery with resale value |
| Your customers | Invoices owed by creditworthy businesses |
| A director’s guarantee | Personal responsibility for the debt if the company fails |
| A general security agreement | A registered claim over business assets other than land |
| Someone else’s property | A guarantor willing to offer theirs |
The more of these rows you can tick, the more you can borrow and the better the terms. A three-year-old business with steady statements and a clean credit file is a very different file from a seven-month-old one, even if neither owns a house.
Your realistic options
Banks lend without property more than people assume, particularly to established businesses with good financials, and often at the lowest cost. They may take security over equipment, a term deposit or the business’s assets instead. If your bank has said it needs property you don’t own, these are the main routes.
Unsecured business loans
Sized on turnover and bank statements, usually $5k to $500k, repaid over anything from several months to roughly three years. Fast to arrange when the statements are clean. Our guide to unsecured business loans covers what lenders check, and the unsecured business loan calculator gives a feel for how turnover translates into a loan size.
Equipment and vehicle finance
The machine, truck or ute secures its own loan. Because the lender can repossess a specific asset, approval often comes more easily than for an unsecured amount of equal size, and amounts can be larger. See equipment finance and the chattel mortgage explainer.
Invoice finance
If you invoice other businesses on payment terms, your unpaid invoices become the security. The facility grows as your sales do, which suits growing B2B businesses that own no real estate. Read more about invoice finance.
A line of credit
Many lenders offer unsecured revolving limits for working capital. Smaller than a term loan as a rule, but flexible.
A guarantor’s property
A parent, partner or business associate offers their property as security. It opens the door to larger amounts and lower cost, but their own home becomes exposed if things go wrong. Our page on loans with a guarantor sets out the questions every guarantor should ask.
Not sure which of these your business would qualify for? Start a one-minute enquiry and we’ll sort the likely from the unlikely.
“Unsecured” still comes with paperwork worth reading
The word unsecured tells you the loan isn’t secured over real estate. It doesn’t tell you the loan has no security at all. Three things are common.
A director’s guarantee. If the borrower is a company, the directors usually guarantee the debt personally. Should the company default, you’re personally exposed. Moneysmart’s guidance on going guarantor is written for family guarantees, but the core warning applies: you can be liable for the whole debt.
A general security agreement. Above a certain loan size, many lenders take a security interest over the company’s assets and record it on the national PPSR. It gives them a claim over equipment, stock and receivables, though not land. If you later want equipment or invoice finance from someone else, that existing registration may need to be dealt with first. Our glossary entry on the general security agreement explains how it works.
A charging clause. This is the one to look for. Some guarantees include a clause that charges any real property the guarantor owns, or later acquires, with the debt. If the loan goes into default, the lender may use it to lodge a caveat on that property. So a loan taken out while you rent could later affect a home you buy. Ask whether the guarantee contains one, and whether it can be removed or limited.
A quick check before you apply
You can search the PPSR yourself for a small fee, using your company’s ACN. It shows any security interests already registered against the business, including ones from old equipment leases or suppliers with retention of title terms. Lenders will search it anyway, so it’s better to know first and clear out anything stale.
Example: a renter funding a second kitchen
An illustrative case. A Brisbane catering company has traded for three years. The two directors rent their homes and the business leases a commercial kitchen. They need $180k: $110k for a combi oven, blast chiller and a refrigerated van, and $70k of working capital to staff a new corporate contract.
The bank is happy with the equipment side but asks for property security for the working capital. Instead, the directors split the need. Equipment finance covers the $110k, secured by the equipment and van themselves, with terms matched to the useful life of each item. An unsecured lender approves $70k over 18 months on the strength of three years of steady statements, with a director’s guarantee. The directors ask their accountant to read the guarantee and confirm it contains no charging clause before signing. No one’s home is involved.
Mistakes to avoid
- Asking an unsecured lender for the whole amount when part of it is equipment that could secure itself.
- Signing a guarantee without reading it, or assuming “unsecured” means no personal risk.
- Applying to several unsecured lenders at once, which stacks credit enquiries on your file.
- Taking a second unsecured loan on top of the first, which most lenders call stacking and decline.
- Forgetting old PPSR registrations that make the business look more encumbered than it is.
Renting, growing and ready to borrow
Not owning property is a common place to start from, and we handle enquiries from owners in exactly this position every week. The trick is splitting your need between the products that suit each part of it, and then choosing lenders that look kindly on your trading record.
The form takes about a minute. Your credit file isn’t looked at when you enquire, so asking leaves no trace. Your enquiry isn’t shopped around either: one team reads your enquiry and decides where it should go. A real person then rings you to talk about your turnover, time in business and what the money is for. Please answer each question accurately, since that’s how we match the right lender for a property-free application without any back and forth.
Frequently asked questions
How much can I borrow without property security?
Unsecured business loans in Australia commonly run from about $5k to $500k, sized mainly on monthly turnover and time in business. Equipment and invoice finance can go higher because the asset or debtor ledger supports the loan. Above that, most lenders want property or substantial other security.
Do I need a personal guarantee if the loan is unsecured?
Almost always, if the borrower is a company. Directors normally guarantee the loan personally, which means the lender can pursue them if the company can't pay. It's the main thing standing in for property in the lender's assessment.
Can a lender take my house later if I don't use it as security now?
Not as security you agreed to, but some guarantees contain a charging clause that lets the lender lodge a caveat over real property you own or later acquire if the debt goes unpaid. Read the guarantee for this before you sign, and ask for it to be removed if you can.
What is a general security agreement?
It's a security interest over a company's business assets, often all present and after-acquired property, registered on the Personal Property Securities Register. It gives the lender a claim over equipment, stock and receivables, but not over land.
Can a renter get a bank business loan?
Yes, especially an established business with strong financials. Banks may lend unsecured on a smaller scale, or take security over equipment, term deposits or a guarantor's property. If the bank wants property you don't have, non-bank lenders are the usual next step.