Primary differences between unsecured and secured loans
An unsecured business loan is assessed on trading — bank statements, turnover, usually twelve months of history — and repaid by daily or weekly direct debit. A secured business loan is assessed on property and an exit instead. HomeSec lends only on the secured side: no cash flow records, no trading history, and no repayments for up to six months.
The two are not variations on a theme. They are assessed on different things, repaid in different ways, and suit different businesses. Choosing the wrong one is expensive in a way that is hard to undo.
What is being assessed
Unsecured lending underwrites your trading. Bank statements, turnover, usually twelve months of history, sometimes a live feed from your accounting software. The lender is betting that next quarter looks like last quarter.
Secured lending underwrites an asset and an exit. The property carries the risk, so your profit and loss is context rather than the decision.
That single difference explains almost everything else about the two products.
How they are repaid
| Unsecured | Property-secured | |
|---|---|---|
| Repayment | Daily or weekly direct debit | Nothing during the term |
| Comes from | Trading revenue | A sale, refinance or receivable |
| Term | Fixed, typically 3–24 months | Open at HomeSec |
| If a slow month arrives | Missed payment, default | No effect |
| Typical size | Under $250,000 | $20,000 to $5,000,000 |
| Speed | 24–48 hours | 24 hours to 3 days |
The daily-debit structure is the part borrowers underestimate. If the reason you borrowed was irregular receipts, a fixed schedule of outgoings reproduces the problem it was meant to solve.
What each one requires
Unsecured: trading history, usually six to twelve months minimum. Bank statements. A credit score above a threshold. No property.
Secured, with us: an active ABN, a business or investment purpose, property with enough equity, and a credible exit. No financial statements, no tax returns, no BAS, no trading history, no minimum credit score, no sworn valuation.
Which is genuinely better for you
Unsecured wins when you have no property equity, when the amount is modest, when trading is steady and predictable, and when you would rather not put the family home behind a business obligation. That last one is a legitimate preference and we would rather you acted on it deliberately.
Secured wins when the amount is larger than unsecured lenders will write, when your financials will not support an application, when you need nothing deducted from the trading account while the loan runs, or when you have been declined on trading history you cannot change.
The one thing both share
Neither fixes a structural loss. If the business loses money on every job, borrowing extends the runway and increases the eventual damage. A lender who will not tell you that is not being straight with you.
Reviewed by Jason Brockmuller, Joint Chief Executive