Business loan without property or security: who will lend to you?

A business loan without property is finance that does not use a house or commercial building as security. That does not mean the loan has no security at all. In practice, lenders who fund owners without property lean on whatever else the business can offer: its turnover, the equipment being bought, money owed by customers, card takings or the business’s assets as a whole. If you rent your home, have little equity or simply do not want to put the house on the line, this is the lending market you are working in.

How common is lending without property?

More common than most owners think, though fully unsecured loans are rare. The RBA’s October 2025 Bulletin found that the unsecured share of SME credit has stayed below 5 per cent, while around half of small-sized SME loans are secured with assets other than residential property, such as vehicles and equipment, a share that has increased since 2019. In other words, borrowing against something other than a home is a mainstream route, not a fringe one.

The same Bulletin notes that new loans secured with residential property are on average four and a half times as large as those secured another way. That captures the trade-off well: without property you can still borrow, but generally smaller amounts.

Which lenders will lend without property?

What the lender relies on	Who lends this way	Product	Best suited to
Turnover and bank statements	Online lenders, some banks	Unsecured business loan or line of credit	Trading businesses with steady takings
The equipment or vehicle being bought	Asset and equipment financiers	Equipment finance, car loans	Buying machinery, vehicles, tools, technology
Money owed by your business customers	Invoice finance providers	Invoice finance	B2B businesses on 30 to 90 day terms
Daily card or online sales	Revenue-based providers	Merchant cash advance	Hospitality, retail, e-commerce
All business assets under a general security	Banks, non-bank lenders	Term loan or facility	Established businesses with real assets
Purchase orders and supplier invoices	Trade finance providers	Trade finance	Importers and wholesalers

Most businesses without property end up with a combination: equipment finance for the assets, plus an unsecured line of credit or invoice facility for working capital. On the unsecured and cash-flow side, expect the lender to work from your takings, with amounts commonly between $5,000 and $500,000.

What do lenders want when there is no property?

They want stronger evidence from the business itself. Expect a lender to focus on:

1. Trading history. Many unsecured lenders want at least six to twelve months; banks usually want two years.
2. Turnover and consistency, read from bank statements and BAS.
3. Account conduct: no regular dishonours, overdrawn days or gambling transactions.
4. Existing debts, including other short-term loans and their repayments.
5. Credit files for the business and each director.
6. A director guarantee, which most lenders require when no property is offered.
7. PPSR registrations already over the business’s assets.

A business with steady takings, clean statements and no stack of existing short-term loans is the strongest candidate for property-free lending.

Not a homeowner, or prefer not to use the house? Check which property-free lenders fit your business in about a minute.

What does a director guarantee mean without property?

A director guarantee is a personal promise to repay the business’s debt if the business cannot. Without a mortgage, the lender has no claim registered over your home, but if the business defaults the lender can pursue you personally for the debt, which can ultimately include your assets. Read the guarantee carefully and understand what you are signing. Our guide on the director’s guarantee explains the different types and what to ask before you sign.

An illustrative example

An invented, simplified case: a mobile mechanic has traded as a company for three years and rents his home. He needs a new service van fitted out with tools for $85,000 and a $30,000 buffer for parts and wages. An asset financier funds the van and fit-out over five years, secured on the vehicle, after reviewing his ABN history, BAS and six months of bank statements. An online lender provides a $30,000 line of credit based on his turnover and account conduct, with a director guarantee. Neither lender asks for property, and the total borrowed is spread between the lender best suited to each part.

Which businesses find property-free lending easiest?

Some business models give lenders plenty to hold onto even without a house in the deal; others give them very little.

Easier without property:

• Businesses selling to other businesses on terms, because invoices are bankable.
• Trades, transport and construction businesses buying vehicles and machinery, because the assets have a resale market.
• Cafés, shops and online stores with steady card or platform takings.
• Established businesses with two or more years of financials and real business assets.

Harder without property:

• Brand-new businesses with no trading history.
• Service businesses whose value is mostly the owner’s skill, with few assets and cash customers.
• Businesses with irregular or seasonal takings, where recent statements look thin.
• Businesses already carrying several short-term loans.

If you fall in the harder group, it is still worth asking. Smaller amounts, a cash contribution, an asset-backed structure or a guarantor can all change the answer.

Is a loan without property the same as an unsecured loan?

Not quite. An unsecured loan has no specific asset behind it at all and relies on your turnover and a guarantee. A loan without property may still be secured, just not by real estate: by a vehicle, a machine, your debtor book or a general security over the business. The distinction matters because secured-on-something loans usually allow larger amounts and longer terms than fully unsecured ones. When a lender says it does not need property, ask what it will take instead.

Property-free options compared

Option	Typical strength	Watch for
Equipment finance	The asset is the security, so terms can be longer	Only funds the asset itself
Invoice finance	Limit grows with your sales	Only works with business customers
Unsecured term loan	Simple lump sum, quick to arrange	Shorter terms and higher cost
Line of credit	Draw and repay as needed	Limit tied to turnover
Merchant cash advance	Repayments flex with takings	Total cost can be high
General security facility	Larger amounts for established businesses	Covers all business assets

How can you improve your chances without property?

• Separate business and personal money, so bank statements tell a clear story.
• Keep BAS and tax lodgements current. Up-to-date tax is one of the first things a property-free lender checks.
• Avoid stacking short-term loans, which crowds out new lenders.
• Ask for what the business can carry. Lenders size property-free loans on turnover, so a realistic request is more likely to be approved in full.
• Use asset finance for assets, so the unsecured portion stays small.
• Build a relationship with a lender who can increase your limit as you trade.

When does it make sense to consider property after all?

When the amount is large or the term needs to be long. Buying a business, purchasing premises or funding a major expansion is usually beyond what property-free lenders will offer. In those cases, property-secured lending between $20,000 and $5,000,000 is often the practical route, whether through your own equity in the future or a family member offering security after independent legal advice. Our page on secured business loans explains how that works, and the lending-to hub covers the other borrower situations, including new businesses.

Want to borrow without putting up property?

Tell us what the business does, how long it has traded, what turnover looks like and what you need the money for, and a lending specialist will match you to a lender that works without property. See if you qualify with a 60-second enquiry. There’s no credit check to ask, your details are not passed around to lots of lenders, and a real person reviews your situation. Fill in the form accurately and we can get the first match right.