Finance for business expansion finance, shaped around how you get paid.

A second site is usually funded with a combination of fit-out finance for the premises, equipment finance for machinery or fixtures and a working capital component for the ramp-up, structured so existing trade carries the repayment until the new site earns. Lenders assess the first site’s performance and the plan for the second.

Yes. Business acquisition finance funds the purchase of a competitor, supplier or complementary business against its financials, goodwill and assets, often combined with a secured loan against property for the deposit. Lenders look at both businesses’ performance and the synergy in the plan.

Match each part of the expansion to the right product: long-term secured or property finance for premises, equipment finance for assets, and a line of credit for working capital, rather than one expensive unsecured loan for everything. The blend lowers the overall cost and keeps repayments in line with how each part earns.

Two years of financials showing the existing business is profitable, a plan with realistic projections for the new capacity, evidence of demand such as contracts or a waiting list, and the owners’ contribution. Lenders fund growth from strength, so applying while current trading is strong matters.

A secured business loan is a term loan backed by an asset the lender can claim if the loan is not repaid, most commonly residential or commercial property, and sometimes equipment, vehicles or a general security agreement over the business. Because the lender’s risk is lower, secured loans offer larger amounts, longer terms and lower rates than unsecured lending. They suit established purposes such as expansion, refinancing, buying premises or consolidating debts, rather than urgent short-term gaps.

Residential property is the most widely accepted security and attracts the best pricing, followed by commercial property. Some lenders also take unencumbered equipment, vehicles or trucks, term deposits, or a general security agreement over all business assets. The lender values the security and lends a proportion of that value, typically up to 80 per cent for residential property and less for commercial property or equipment. Your broker matches the security you have to lenders that accept it.

Materially. Secured business loans backed by property in Australia are typically priced in the single digits, while unsecured business loans commonly run from around 10 per cent to well over 20 per cent because the lender carries more risk. Secured loans also run over longer terms, up to 15 years or more, so the repayment is lower again. The trade-off is time and cost to set up: a valuation, legal work and a slower approval, so the saving needs to outweigh those for smaller or short-term amounts.

Yes, and it is the most common form of security for small business borrowing in Australia. The lender takes a mortgage over the home, usually behind your existing home loan as a second mortgage or by refinancing the home loan and adding the business borrowing. The equity available is generally the property value less existing loans, up to a lending limit of around 80 per cent. Using your home puts it at risk if the business cannot repay, so your broker explains the implications and any alternatives before you proceed.

Allow two to six weeks. The lender needs a valuation of the security, which takes one to two weeks for residential property and longer for commercial, then reviews financials and prepares mortgage documents. Non-bank lenders can be faster, sometimes within a week where a recent valuation exists. If the funding is urgent, your broker may arrange a short-term unsecured facility first and refinance it into the secured loan once it settles.

Full-doc secured loans typically need two years of business financials and tax returns, recent BAS, business bank statements, a statement of your assets and liabilities, and details of the security property including any existing mortgage. Low-doc secured loans replace the financials with an accountant’s declaration or bank statements and are priced a little higher. The lender also requires identification for all directors and guarantors and evidence that the business purpose is genuine.