How to unlock the equity in your property for your business

What is equity, and how much do you have?

Equity is the part of your property you own outright. Take the current market value, subtract everything owed against the title, and what is left is your equity. It is the simplest sum in lending, and most owners have never done it.

Here is an example. Take a cafe owner whose investment unit is worth $900,000 today. There is a $450,000 mortgage on it, and nothing else registered against the title. That leaves $450,000 of equity. The owner cannot borrow all of that, because a lender lends against a portion of the equity and keeps a buffer for price movements and costs. But there is a large pool to work with, and it is sitting idle.

Three things change the figure:

• Value. What the property would realistically sell for, not what you paid or what the council says. A lender will form its own view, usually with a valuation.
• Everything registered against the title. That means your first mortgage, any existing second mortgage.
• Who owns it. Joint owners, a trust or a company all have to be on board. Everyone on the title signs.

If you can state the value and the loan balances to within a few thousand dollars, you can have a useful conversation in five minutes.

Five ways to unlock equity (and what to watch)

There is no single product called an equity loan. There are several ways to put a charge over your property, and each suits a different job.

Outside Victoria, a caveat loan is not how it is done. The loan settles straight onto a registered second mortgage instead. In Victoria, a caveat is a document that any person with a legal interest in a property can lodge, and it appears as a note on the title. The Victorian Government explains it in its land registration glossary. Our caveat loan versus second mortgage guide compares the two in detail, and using equity without refinancing covers why most owners keep their first loan where it is.

What lenders assess: the equity and the exit

A bank looks at your income. A property lender looks at the property and at how the loan ends. That is why people who were turned down for lack of financials often get approved here.

• The equity. Is there enough value left over, after existing loans, to cover the new loan with room to spare?
• The exit. How does the money come back? A refinance to a bank once the paperwork is fixed, a sale of an asset, a settlement, a tax refund, a contract payment. A loan with no credible exit is a loan to avoid, whatever the equity looks like.
• The title. Whose names are on it, and is anything else registered against it?

You do not need financials or tax returns for a property-secured business loan. Loans run from $20,000 to $5M, and our book shows a median of 36 hours to funds, with the fastest as little as 24. Defaults, bad credit and ATO debt are considered, and overdue lodgements do not stop an application. The exit is just as important as the equity. A borrower with a clear plan and a modest loan will usually get further than one with big equity and no plan.

If you have no property, there is another lane. A cash-flow loan needs an active ABN, six months or more of trading and a read-only link to your business bank statements. It is sized to turnover, and some fund within two hours of approval.

What business owners use their equity for

Equity gets used where timing hurts. These are the situations we see most, and each has its own guide with the detail.

• Tax debt. The ATO charges general interest on overdue debt, and it compounds daily. The rate is set quarterly: the ATO publishes 11.51 per cent for October to December 2026, and it is no longer deductible for income years starting on or after 1 July 2025. Clearing the debt can stop that clock. See paying ATO debt with property equity and loans for ATO tax debt.
• Overdue commercial rent. A landlord can move fast on a tenant in arrears. See what to do when you are behind on commercial rent.
• Wages and super. Employees come first. Under Payday Super, which started on 1 July 2026, contributions must reach the fund within 7 business days of payday, per the ATO. Read catching up on unpaid wages and super and our guide to funding payroll.
• Suppliers and creditors. Getting back on terms keeps stock arriving. See behind with suppliers and creditors.
• Stock going cheap. A clearance, a liquidation sale or a bulk-buy discount is gone in days. See buying stock cheap with fast finance and stock and inventory loans.
• A deposit on a business. The seller will not wait while a bank assesses. See securing a business deposit before competitors do and buying a business.
• Auction deposits and settlement. See finance for an auction deposit and settlement.

You can also read the case for the model as a whole in the benefits of Instant Business Finance.

Why property equity fits these jobs

Notice what these situations share. The cost of waiting is higher than the cost of the loan, and the money is needed against a date. That is where equity-backed finance earns its place.

It matches the speed of the problem. A landlord’s notice, a payroll run, an auction on Saturday. A bank takes weeks. Property-secured finance, assessed on equity and exit rather than a year of accounts, can fund in as little as 24 hours.

It does not depend on the thing that is going wrong. If the business is behind with the ATO or has a messy year, your financials are the weakest part of the file. Equity is not. Because the property carries the file, the usual blockers (no tax returns, defaults, overdue lodgements) do not decide the outcome. Of the 5,626 loans funded since 2012 in our Funding Speed Report, 61% of borrowers had already been declined somewhere else.

It can fix the cause, not just the symptom. Paying the ATO in full stops interest. Clearing rent removes the lockout risk. Paying the deposit secures the deal. When the loan removes the pressure and not just delays it, the numbers tend to work.

If cash flow is the recurring issue, not a single event, say so early. A property loan fixes a gap, not a business that loses money. See cash flow gaps for the other options.

When not to use your property

A property-secured loan puts your property on the line. That is the deal, and it is why the cost sits above a bank’s. Use it deliberately.

• It is your home and you have no exit. If you cannot name how the loan gets repaid, do not sign. Hope is not an exit.
• The need is long-term. Short-term, higher-cost finance is the wrong tool for a five-year capital project. Use it as a bridge, then refinance to a bank loan when the file is clean.
• The business loses money every month. A loan buys time. If the model does not work, more debt makes the loss bigger. Speak to your accountant, and if the business is insolvent, to a registered liquidator before borrowing.
• A cheaper option exists and you have the time. A bank refinance, an ATO payment plan or an asset finance deal may cost less. If you have six weeks and a clean file, ask the bank first.
• The borrowing is for something you could pay from cash flow next month. Wait, or use a smaller cash-flow facility.

The sign of a good equity loan is that the borrower can explain the repayment in one sentence. If you cannot, pause. We will tell you if we think a loan is the wrong answer, and that is deliberate.

How the process works

1. Gather the basics. Property address, estimated value, loan balances, who is on the title, how much you need and what it is for.
2. Run the check. The online eligibility check takes 60 seconds and makes no credit enquiry. It points you to the property lane or the cash-flow lane.
3. Talk through the exit. Be specific about dates. A lender can help structure it better when it understands the plan.
4. Valuation and documents. The lender confirms the value and the title. Everyone on the title signs. This is where most of the time goes, so have signatories reachable.
5. Funds. The loan settles and the money moves. For property-secured loans our median is 36 hours.

Our how it works page walks through each stage, and business loan costs explains how fees are structured. Do not forget the exit: put the date it should be repaid in your diary before you sign. For urgent timing, see urgent business loans.

Find out what your equity could unlock

You now have the sum: value, less loans, and a portion of what remains. The quickest way to turn that into a real number is to run it. The 60-second check asks about the property, the amount and the purpose, makes no credit enquiry and costs nothing to apply. See what your property could unlock, or call 1300 863 711 and tell us what the deadline is.

Frequently asked questions