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What can I use as security for my business loan?

When taking out a business loan in most cases your lender will ask you to secure the loan using some form of asset that you or the borrower may own. This security is intended to cover the business loan amount in the event you are unable to pay it back.

What assets do Westpac accept as security?

  • The most common asset for a small business loan is property, including residential, commercial and rural land
  • In some instances we accept other balance sheet assets to secure a loan, including your cars and equipment, or a Westpac accredited franchise
  • We could also use the value of your business to secure a commercial business loan

What if I want to sell my asset?

Whatever asset you use to secure your business loan, you can still sell it if you need to during the loan term provided you obtain consent from the bank and offer another form of security acceptable to the bank to take its place (if required). Learn more about selling the property you're using to secure you loan.

You should speak with your business manager before you decide to sell your asset to make sure your alternative asset will be acceptable or required.

What if something goes wrong and I can’t make my repayments?

If you're unable to make your business loan repayments, the bank may sell your asset. We will use the money from the sale of your asset to cover the remaining debt and any expenses incurred along the way and you'll receive any money left over.

What if I don’t have security for a business loan?

If you require unsecured funding, an overdraft (up to $50,000), business loan (up to $50,000) or credit card (up to $150,000) may be available. A guarantee will be required by company directors for corporate borrowers. Alternatively you might be able to have a third party guarantee your business loan.

If you’d like to discuss your options with a business manager, complete our short enquiry form and we'll contact you or call us on 132 142 (8am-8pm, Mon - Fri).