Business Loans Without a House: Your Real Options

Walk into a bank asking for a business loan and the first question is usually some version of "do you own property?" If the answer is no — because you rent, your house is already mortgaged to the hilt, or you'd simply rather not bet the family home on the business — you're not out of options. You'll just pay more for money, and you need to know which options are fair value and which are traps dressed up as convenience.

Why banks want your house

Banks price loans on risk. A registered mortgage over a property gives the lender a near-certain way to get its money back if your business goes under, which is why property-secured loans carry the lowest rates going. Without it, the lender relies entirely on your business's cash flow — riskier, so they charge more, lend less, and scrutinise your bank statements harder.

Every option below is a lender finding a different way to feel safe: charging a premium (unsecured loans), taking the asset itself as security (equipment finance), taking your invoices (invoice finance), or making you personally liable anyway (the guarantee — more on that shortly).

Unsecured business loans from fintech lenders

Online lenders like Prospa, Moula, Lumi and OnDeck lend without property security — online application, a decision within hours, money in your account the next business day. All the big names are still actively lending as at August 2026.

The catch is cost. Advertised "from" rates are for the strongest borrowers; most small businesses land between 15% and 30%+ per annum once risk pricing and fees are factored in — several times what a property-secured loan costs.

Lender	Typical amounts	Indicative rates (as at August 2026)	Worth knowing
Prospa	$5,000–$150,000 unsecured	~9.9%–26.9% p.a. plus an origination fee of 2%–3.5%	Minimum 6 months trading and ~$6,000/month turnover
Moula	$10,000–$250,000	From ~16% APR	Markets itself on transparent, no-hidden-fees pricing
Lumi	Loans and lines of credit up to $1 million	From ~15.75% APR	Line-of-credit specialist; minimum 6 months trading

These loans suit a short, sharp need with a clear payback — stock for a confirmed order, a fit-out that opens new revenue. They don't suit plugging ongoing losses: borrowing at 25% to cover an unprofitable business just deepens the hole faster.

Equipment and asset finance (chattel mortgage)

If what you actually need money for is a ute, machine, trailer, oven or piece of kit, don't take an unsecured loan — use asset finance. Under a chattel mortgage, the lender takes security over the asset itself, so your house never enters the conversation and the pricing reflects the lower risk: rates start around 6.3%–7% and most small businesses land in the 8%–11% range (as at August 2026), depending on ABN age, credit history and the asset itself.

You own the asset from day one, can generally claim the GST credit upfront in your next BAS, and can structure a balloon payment to lower repayments. New, easily resold assets get the best rates. Comparison rates usually aren't quoted on business finance, so ask for the total cost — establishment, monthly and early-payout fees — before comparing on rate alone.

Invoice finance: unlock money you're already owed

If customers take 30–60 days to pay while your bills are due now, invoice finance turns unpaid invoices into cash. The financier advances you 70%–90% of an invoice's value within a day or two, then pays the balance (minus fees) when your customer settles.

The cost usually has two parts: a service fee of roughly 0.5%–3% of invoice value, plus a discount rate charged on the funds advanced until the invoice is paid. That sounds modest, but do the annualised maths — around 2% all-up on a 30-day invoice works out near 24% per annum equivalent. It comes in two flavours:

Factoring — the financier takes over collecting the invoice, and your customers know. Common for smaller businesses.
Invoice discounting — confidential; you keep collecting. Usually reserved for larger, established businesses.

It suits B2B businesses with creditworthy customers and growth outrunning cash flow — the financier checks your debtors' creditworthiness before yours, so it won't fix customers who don't pay at all.

Business credit cards and overdrafts

For small, short-term gaps, the boring options still work. An unsecured business overdraft attaches to your trading account and you only pay interest on what you use — roughly 14% to 25%+ p.a. (as at August 2026). A genuinely useful buffer, as long as you're not living permanently at the limit.

Business credit cards give you up to 55 interest-free days — free short-term finance if you clear the balance in full every month. Miss that and you're paying 15%–20%+ on the carried balance. Treat the card as a smoothing tool, not a funding source, and never chase points into debt.

Trade credit: the finance nobody counts

A 30-day account with your suppliers is an interest-free loan, and it's the cheapest finance in this article. Build it deliberately: start with small orders paid on time, then ask for terms once you've got a track record. Running $20,000 a month through supplier accounts on 30-day terms is effectively a permanent $20,000 interest-free facility. Protect it fiercely — losing supplier trust is expensive to rebuild — and manage the payment cycles as part of your cash flow management.

The personal guarantee reality

Here's the part the glossy lender websites bury: "unsecured" almost never means nobody is on the hook. Virtually every unsecured business loan to a company requires a director's guarantee — you personally promise to repay if the business can't.

If the business fails owing $80,000, the lender can pursue you personally: court judgment, garnished income, and yes, forcing the sale of your house even though it was never formally mortgaged. Running a company doesn't shield you from debts you've personally guaranteed — the guarantee deliberately punches through the company structure. Many lenders also register a general security interest over all your business assets on the Personal Property Securities Register, putting them ahead of other creditors if things go wrong.

None of this means don't borrow. It means read the guarantee, understand exactly what's exposed, and treat "unsecured" as "no property mortgage", not "no personal risk".

What lenders actually assess without property

No house to value means the lender lives in your bank statements. Expect them to look at:

Bank statements — usually 3–6 months, often via a secure read-only feed, checking real revenue, dishonours, existing repayments and whether the account regularly goes backwards.
Revenue — most fintechs want minimum monthly turnover of roughly $5,000–$10,000 (Prospa's floor is about $6,000/month, as at August 2026).
Time in business — 6 months trading with an ABN is the typical fintech minimum; 12–24 months gets you better pricing, and banks generally want 2+ years of financials.
Credit history — the director's personal credit file matters as much as the business's. Defaults and excessive recent enquiries hurt.
Existing debt and tax position — undisclosed loans and ATO arrears are deal-killers. The ATO can report business tax debts of $100,000+ overdue more than 90 days to credit bureaus, so a payment plan beats ignoring it.

Government-backed options (as at August 2026)

There's no general government-guaranteed small business loan scheme right now — the COVID-era SME Recovery Loan Scheme closed back in 2022. But one live program is worth knowing about:

Economic Resilience Program — a $1 billion program through the National Reconstruction Fund Corporation offering zero-interest loans of up to $5 million via participating banks, with terms of up to two years. Applications opened 20 April 2026 and run six months or until the money's gone. Eligibility is narrow: turnover under $100 million and operating in supply-chain sectors — freight, logistics, fuel, fertiliser, plastics — hit by recent market disruptions. You repay the principal in full and standard bank fees apply, but zero interest is zero interest.
Green asset finance — several lenders offer discounted rates on energy-efficient equipment, solar and EVs, backed by Clean Energy Finance Corporation funding.
State programs and grants — they change constantly; check the grants and programs finder on business.gov.au.

Red flags: fast money that costs a fortune

The unsecured lending market has a rough edge, and it's aimed at desperate people. Watch for:

The factor rate trap. Merchant cash advances and some short-term lenders quote a "factor rate" instead of an interest rate — say 1.25 on a $40,000 advance, meaning you repay $50,000. That looks like 25%, but it isn't. Interest is charged on a declining balance; a factor rate is a fixed dollar cost no matter how fast you repay. Over a 6-month term with daily repayments, that $10,000 cost easily exceeds 50% as an effective annual rate — factor-rate products regularly work out at 50%–100%+ APR equivalent. Repaying early usually saves nothing, because the total was fixed on day one.

Daily repayment products. Deductions hit your account every business day (or as a cut of card sales), quietly strangling the cash you need for wages and rent. Worst case is "stacking" — a second advance to cover repayments on the first. That's the debt spiral, and it kills businesses.

Brokers pushing speed over fit. A broker with money "approved in an hour" before asking a single question about your business is selling their commission, not a solution. Business lending mostly sits outside consumer credit protections — the guardrails you'd expect on a home loan don't apply.

Before signing anything, get two numbers in writing: the total dollar cost of the finance, and the effective annual rate. If a lender or broker won't give you those, walk. And check the lender belongs to the Australian Financial Complaints Authority so you have somewhere to go if it turns ugly.

Preparing your case

Lenders without property security are backing your cash flow, so show it to them properly. Get six months of clean bank statements (no dishonours, no gambling, no accounts constantly at zero), up-to-date financials — a current profit and loss statement is the minimum — and a cash flow forecast showing the repayments fitting comfortably. For larger amounts, a short, sharp business plan showing exactly what the money does and how it comes back lifts you out of the "hopeful applicant" pile — our free business plan builder gets you most of the way. And run the numbers past your accountant before you apply, not after — the structure of the borrowing often matters more than the rate.

Key takeaways

No property doesn't mean no finance — just dearer finance. Fintech unsecured loans typically run 15%–30%+ p.a. (as at August 2026), so borrow for opportunities with clear payback, not to fund losses.
Match the product to the need: asset finance (~8%–11%) for equipment, invoice finance for slow-paying customers, an overdraft for lumpy months, trade credit for breathing room.
"Unsecured" almost always comes with a director's personal guarantee — your house can still be on the line, just via a different legal route.
Without property, lenders assess bank statements, revenue (usually $5,000–$10,000/month minimum) and time in business (6+ months with an ABN).
Never accept a factor-rate quote at face value — demand the total dollar cost and effective annual rate in writing, and be very wary of daily-repayment products.
The zero-interest Economic Resilience Program is open in 2026 but only for specific supply-chain sectors — check eligibility before assuming it applies.

Where to get help

business.gov.au — grants and programs finder, including the Economic Resilience Program
ato.gov.au — payment plans if tax debt is part of why you're borrowing
asic.gov.au — checking who you're dealing with, and its Moneysmart guidance on borrowing
afca.org.au — complaints about lenders and brokers
Your accountant — before you apply, not after