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What can I use as security for my business loan?

When taking out a business loan you may need to secure the loan with an asset. This security covers the business loan amount if you're unable to pay it back.

What assets do Westpac accept as security?

Types of security that can be used for a business loan:

  • Property – residential, commercial or rural. This is the most common asset used for a small business loan.
  • Cars and equipment or a Westpac accredited franchise. These can only be used in some cases.
  • The value of your business. This can only be used to secure a commercial business loan.

What if I want to sell my asset?

You can sell the asset you’re using to secure your business loan if you want to during the loan term.

You’ll need to notify us first so that we can let you know what we require and when, to allow the sale to proceed smoothly. You may need to offer another form of security to take its place.

Learn more about selling the property you're using to secure your loan.

What if I can’t make my repayments?

We know that financial stress can sometimes be a result of unplanned life events such as change of income, illness, a relationship breakdown, reduction in your business cash flow or emergency events like natural disasters.

Westpac Hardship Assistance can help with the financial support you may need.

If all options have been exhausted and you're still unable to make your business loan repayments, the bank may sell your asset. The money from the sale of the asset is to cover the remaining debt and any expenses incurred along the way. You'll receive any money left over.

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

If you don’t have an asset to provide as security, you can ask someone to go guarantor for your loan. Learn more about using a guarantor to secure a business loan.

If you need unsecured funding, these options may suit you:

Things you should know

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek professional advice.