How to secure working capital against property
Working capital secured against property means borrowing against equity already held rather than against next month's invoices. HomeSec funds working capital from $20,000 to $5,000,000 against Australian real property, generally within 24 hours of approval, with no repayments for up to six months and no cash flow records or trading history required.
There are two ways to fund a working capital gap in Australia, and they are assessed on completely different things.
The first looks at your trading. Bank statements, turnover, usually twelve months of history, then repayment by daily or weekly direct debit out of the same account the money went into. That is what most online lenders offer.
The second looks at property you already own. Nothing is deducted while the loan runs, no trading history is required, and the loan is repaid at the end from a defined source. That is what we do.
Why the distinction matters more than the rate
A cash-flow facility takes money out of the account every week whether or not that week was any good. If the gap you are funding is caused by irregular receipts — which is usually the case — a daily debit makes the problem it is solving slightly worse each week.
A property-secured loan does not touch your trading account at all. Interest is capitalised for the period you choose, so nothing falls due while the loan runs, and the principal comes back at the end from the sale, the refinance or the receivable that closed the gap.
What it takes
Four things: an active ABN, a business or investment purpose, Australian real property with enough equity, and a credible exit. Combined lending stays within 80% of value on residential security or 70% on commercial.
What it does not take: financial statements, tax returns, BAS lodgement, cash flow records, a minimum trading period, or a clean credit file.
The term is yours
We do not fix it. There is no minimum, no maximum, no penalty for repaying early and no fee for extending. Most private lenders write one to twelve months and charge a minimum interest period of three — which means a borrower who is finished in six weeks pays for three months anyway.
We can leave the term open because we fund our own loans with our own money. There is no fund mandate behind us requiring capital back on a date.
When this is the wrong product
Two cases, stated plainly because you will not get this from a lender’s marketing page:
If you need a revolving facility. A line of credit you draw and repay repeatedly is a different product. We advance a defined amount with a defined exit. If you need the former, we are not it.
If the gap is structural rather than timing. Working capital finance solves a mismatch between when money leaves and when it arrives. It does not solve a business that is losing money on every job. Borrowing at private rates against the family home to cover a structural loss makes the eventual outcome worse, and we decline files on that basis regularly.
What it costs
We do not publish a rate, because private lending is genuinely risk-priced per file — security type, LVR, position on title, quality of the exit and how much documentation exists all move it. Any single advertised number would be a best case or a bait.
What you get instead is a real number in writing, on a Letter of Offer, within about two business hours of the first call, before you have paid or committed to anything. Here is every fee that exists in private lending, and the question to ask about each — print it and use it on any lender, including us.
Reviewed by Jason Brockmuller, Joint Chief Executive