Frequent Asked Questions
What is a property secured business loan?
A property secured business loan is a business loan that uses real estate as security. The property may be residential or commercial, and the loan can be registered as either a first mortgage or a second mortgage, depending on your situation and existing lending.
Do you offer both first and second mortgage business loans?
Yes. Lendo offers business loans secured by property using either first mortgage security or second mortgage security.
First mortgages are suitable for unencumbered properties or where refinancing makes sense.
Second mortgages allow you to access equity without refinancing your existing home loan.
What is the difference between a first mortgage and a second mortgage?
A first mortgage is the primary loan secured against a property.
A second mortgage sits behind an existing home loan, allowing you to access additional equity while keeping your current lender and loan structure unchanged.
Both options can be used to secure a business loan, subject to available equity and lending criteria.
Will a second mortgage affect my existing home loan?
No. When using second mortgage security, your existing home loan remains in place and unchanged. Your current lender stays in first position, and Lendo registers a second mortgage behind them.
Do I need to refinance my home loan to access equity?
Not necessarily. Many borrowers assume refinancing is the only option, but a second mortgage business loan can often provide faster access to capital without refinancing, depending on your equity position.
Do I need to provide business financials?
In most cases, no business financials are required. Our lending decisions focus on property equity, asset position, and business purpose, rather than traditional bank-style financial documentation.
How much can I borrow?
You may be able to borrow up to 80% loan-to-value ratio (LVR) on a combined basis, depending on the property, location, and loan structure. Loan amounts are typically higher than unsecured business funding options.
What can I use the loan funds for?
Funds can be used for a wide range of genuine business purposes, including:
Working capital
Cash flow support
Business expansion or acquisition
Strategic investments
Debt consolidation
Paying tax debt
Purchasing stock, equipment, or vehicles
How quickly can my loan be approved?
Approvals can be issued as quickly as 24 hours, provided we have the required information. Once documents are signed and returned, funds may be released the same day.
Are repayments required immediately?
Not always. Prepaid interest options may be available, allowing no repayments for the first 3 or 6 months, depending on the loan structure.
What types of properties can be used as security?
Loans may be secured by:
Residential property
Investment property
Commercial property
Vacant land
The property must have sufficient equity to support the loan.
What industries do you lend to?
All industries are welcome. We assess each application individually based on property equity and business purpose rather than industry classification alone.
Is this a personal loan or a business loan?
This is a business loan secured by property. While residential property may be used as security, the funds are provided for business purposes and structured accordingly.
How do I apply?
Simply complete the 5 minutes, obligation free application. A dedicated Business Manager will contact you to confirm your requirements and issue conditional approval promptly.
Can I get a business loan secured by property if I have bad credit?
Yes, in many cases you still may be eligible.
While credit history is considered, our primary focus is on property equity, asset position, and business purpose, rather than credit score alone. Having adverse credit does not automatically disqualify you, provided there is sufficient property equity and a genuine business purpose.
Can I get a business loan secured by property for a startup business?
Yes. Startup businesses may be eligible for a business loan secured by property.
Unlike traditional bank lending, we do not rely solely on trading history. If you have sufficient property equity and a clear business purpose, we may be able to assist, even if your business is newly established.
Is this business loan secured by property a fixedrate loan?
Loan pricing and rate structure depend on the loan type, security position, and overall risk profile.
Some loans may be offered at a fixed rate, while others may be variable. Your Business Manager will clearly explain the rate structure, costs, and terms before you proceed.
Will my bank allow a second mortgage on my property?
In most cases, yes.
Your existing lender typically remains in first mortgage position, and a second mortgage can be registered behind them. A second mortgage does not change your existing home loan, repayment terms, or lender relationship. Approval is subject to available equity and standard registration requirements.
Can I refinance an existing second mortgage with another second mortgage loan?
Yes, this may be possible.
If you currently have a second mortgage in place, refinancing into a new second mortgage loan may be considered, subject to property equity, loan structure, and lending criteria. This can sometimes improve cash flow, loan terms, or access additional capital.
What happens if I sell my property while I still have a business loan secured by it?
If the property is sold, the loan must generally be repaid or refinanced as part of the settlement process.
Your Business Manager will work with you to understand your options, which may include refinancing the loan against another property if suitable security is available.
What happens if I default on a business loan secured by property?
A business loan secured by property is a secured loan, meaning the property is used as collateral.
If repayments are not met, the lender may take enforcement action in line with the loan agreement, which could ultimately include exercising mortgage rights over the property. We encourage borrowers to contact us early if they experience financial difficulty, as options may be available.
Does using my property mean this becomes a personal loan?
No.
This is a business loan secured by property. While residential property may be used as security, the funds are provided for business purposes and structured as business lending.
Is refinancing always required to access property equity?
No.
Refinancing is not always necessary. Many borrowers choose a second mortgage business loan to access equity while keeping their existing home loan unchanged, which can often be faster and more flexible than refinancing.