Secured vs Unsecured Business Loans: Which Loan Is Right for You?
- gareth150
- Aug 6
- 3 min read
When you're looking to finance business growth, manage cash flow, or cover urgent expenses, you’ll typically face two options: secured and unsecured business loans. Both serve distinct purposes, and the right loan depends on your business’s needs, assets, and repayment capacity.
At Assurity Capital, we offer flexible private lending solutions tailored to suit different business circumstances — including both secured and unsecured loan options.
What Is a Secured Business Loan?
A secured business loan is backed by an asset — typically real estate, but it can also be equipment, vehicles, or other valuable property. The security reduces the lender’s risk and often allows for:
✅ Larger loan amounts
✅ Lower interest rates
✅ Longer loan terms
If the borrower defaults, the lender has the legal right to sell the secured asset to recover the debt.
Typical Use Cases:
Large equipment purchases
Refinancing other private debt
At Assurity Capital, we most commonly secure loans against real estate and offer fast funding from $50,000 and up, with flexible terms and no credit score requirements.
What Is an Unsecured Business Loan?
An unsecured business loan does not require any physical asset as collateral. Instead, the lender relies on the borrower’s business performance, cash flow, and creditworthiness to assess risk.
Key Features:
🔹 Fast approval (often within 24–72 hours)
🔹 No asset required
🔹 Smaller loan amounts
🔹 Higher interest rates and shorter terms
🔹 May require a personal guarantee
These loans are best suited for short-term needs such as purchasing stock, covering temporary cash flow gaps, or funding marketing campaigns.
Key Differences at a Glance
Feature | Secured Loan | Unsecured Loan |
Collateral Required | ✅ Yes (e.g., property, vehicles) | ❌ No |
Loan Size | Higher — often $50,000+ | Lower — typically up to $300,000 |
Approval Time | Fast — usually within a few days | Very fast — often within 24–72 hours |
Interest Rates | Lower due to reduced risk | Higher due to increased risk |
Loan Term | Longer — up to 36 months or more | Shorter — typically 3–12 months |
Risk to Borrower | May lose the secured asset if in default | Personal guarantee or legal action possible |
Which Loan Is Right for You?
Choose a Secured Business Loan if:
You own property or other high-value assets
You need a larger loan amount
You want lower interest rates
You can offer security for flexible terms
You're refinancing a private loan or consolidating debt
Choose an Unsecured Business Loan if:
You need funds quickly for a short-term need
You don’t own real estate or don’t want to risk it
Your funding needs are smaller (under $300,000)
You can afford higher repayments in a shorter timeframe
Assurity Capital Can Help You Decide
At Assurity Capital, we’re not a one-size-fits-all lender. We work with business owners, investors, and brokers to structure finance solutions that work — whether that’s through a fast unsecured loan or a tailored second mortgage solution.
Our process is simple, fast, and private. We specialise in funding Australian businesses that need:
Private funding without bank delays
ATO and creditor payouts
Business acquisition or expansion
Cash flow support
Refinancing other private or caveat loans
Let's Talk About What’s Right for You
Contact us today for a no-obligation discussion about your funding needs. We’ll help you understand your options and move quickly to secure the right solution.
📧 scenario@assuritycapital.com.au📞 02 9389 1077. Contact us