Purpose
We establish the exact commercial use of every dollar advanced.
Commercial and business finance only
Business-Purpose Lending Policy
Property-secured commercial finance for genuine business purposes—assessed around your purpose, security position, leverage and realistic exit strategy.
Australian commercial borrowers Residential or commercial security Private and non-bank lender options Every scenario assessed individually Transparent, industry-aligned lending practices
Up to 90%indicative LVR*
Available only in selected business-purpose scenarios. The maximum LVR depends on lender policy, the acceptable security value, property type and location, total secured debt, capitalised interest and fees, borrower contribution and the strength of the exit strategy. It is not available for every applicant or product and is not an offer or guarantee of finance.
Security
Residential, commercial, industrial, rural or development property may be considered.
Leverage
Total secured debt, interest, costs and the property profile determine available LVR.
Exit strategy
A credible sale, refinance, asset realisation or cash-flow repayment plan is essential.
Policy overview
What is a business-purpose loan?
A business-purpose loan is funding used wholly or predominantly for a genuine business or commercial activity. The property offered as security does not determine the purpose of the loan—the actual use of the proceeds does.
Our lending-practices commitment: We use documented, transparent processes designed to align with applicable Australian law, responsible conduct expectations and individual lender requirements. Finance outcomes remain subject to case-by-case assessment and cannot be guaranteed.
Basic Finance Loans arranges commercial, private and property-secured finance for Australian businesses, property owners, developers and investors. Applicants must fully and accurately disclose the proposed use of funds and may be required to provide supporting evidence and a formal business-purpose declaration.
Working capital and cash flow
Stock, suppliers, contracts, business creditors, project costs and documented growth requirements.
Business expansion or acquisition
Acquiring a business, shareholder or partner buyouts, equipment and productive business assets.
Commercial property
Purchase, refinance or equity release involving office, retail, industrial, hospitality and other commercial assets.
Development and construction
Site acquisition, subdivision, construction, cost overruns, completion funding and residual stock.
Business debt and tax liabilities
Creditor or taxation liabilities where the facility forms part of a credible restructuring and repayment plan.
Urgent commercial settlements
Short-term bridging where the timing need is clear and a realistic repayment strategy is documented.
Important: A purpose listed on this page does not guarantee eligibility or approval. Every transaction is subject to lender policy, verification, security assessment and due diligence.
Eligible purposes
Uses of funds we may consider
- Business working capital
- Business expansion
- Commercial property purchase
- Commercial refinance
- Development and construction
- Business equipment or stock
- Taxation liabilities
- Urgent settlements
- Partner or shareholder buyouts
- Business debt restructuring
- Completion of stalled works
- Documented commercial equity release
Outside this policy
Corporate-borrower investment scenarios
Eligible short-term mortgage and bridging finance may be considered for rural and lifestyle properties for business or investment purposes where the corporate borrower is the registered owner on title. This specific pathway does not extend to regulated consumer credit. The borrower structure, actual use of funds, security and repayment strategy remain subject to lender and legal assessment; company ownership is not an approval guarantee.
Purposes we do not fund
We do not arrange consumer credit for purposes that are wholly or predominantly personal, domestic or household in nature.
Independent consumer-purpose options: We have a network of independent finance contacts, including financiers, brokers and investors. Where appropriate, we may provide contact details for a separate provider that is appropriately licensed or otherwise legally authorised to consider consumer-purpose credit. That provider conducts its own assessment. Basic Finance does not provide or assess consumer credit, and no approval is implied.
- Personal living expenses
- Holidays or discretionary spending
- Personal debt consolidation
- Household goods or personal vehicles
- Owner-occupied home purchase or refinance
- Owner-occupied home renovations
- Regulated residential investment credit
- Any purpose misdescribed to avoid consumer credit requirements
Indicative guide
Business lending product matrix
The figures below are a general guide. Actual leverage, term, pricing, fees and conditions depend on the lender, acceptable security value, location, loan purpose and exit strategy.
| Product | Common business purpose | Indicative leverage | Typical term | Common exit |
|---|---|---|---|---|
| Caveat loan | Urgent working capital, creditors, tax or settlement shortfalls | Up to 90% LVR in selected scenarios* | 1–6 months | Refinance, property sale or asset sale |
| First mortgage business loan | Acquisition, refinance, working capital or commercial equity release | Up to 90% LVR in selected scenarios* | 3–24 months | Commercial refinance, cash flow or sale |
| Second mortgage business loan | Additional business capital while retaining an acceptable first mortgage | Up to 90% combined LVR in selected scenarios* | 3–12 months | Refinance, asset sale or property sale |
| Commercial bridging loan | Purchase before sale, urgent settlement or a temporary funding gap | Up to 90% LVR in selected scenarios* | 3–12 months | Property sale or longer-term refinance |
| Commercial property loan | Purchase or refinance of office, warehouse, retail or industrial property | Generally 60%–80% LVR; higher by exception* | Case-by-case | Business or rental income, refinance |
| Low-document business loan | Working capital, restructuring or commercial equity release | Based on acceptable security, evidence and exit | 3–24 months | Cash flow, refinance or sale |
| Development finance | Acquisition, subdivision, construction and development costs | Assessed against land value, total development cost and GRV | 6–24 months | Completed property sales or refinance |
| Construction completion finance | Cost overruns, incomplete works or stalled construction | Case-by-case | 6–18 months | Completion followed by sale or refinance |
| Residual stock loan | Completed but unsold development stock | Generally up to 70% LVR; higher by exception* | 3–24 months | Progressive stock sales or refinance |
| Rural property business loan | Agricultural business, rural acquisition or business equity release | Generally 50%–70% LVR | 6–24 months | Business income, asset sale or refinance |
| Commercial equity release | Expansion, acquisitions, creditors or working capital | Based on available property equity and exit | 3–24 months | Cash flow, refinance or asset sale |
*The advertised 90% maximum is not standard across all lenders, properties or applicants. It may require a particularly strong transaction, additional security or a specialised structure. Existing debt, capitalised interest, lender and brokerage fees, legal costs and other transaction expenses reduce the net funds available and increase total LVR.
How decisions are made
How we assess an application
Commercial lending decisions are not based on property value alone.
Purpose
The precise use of funds and supporting evidence.
Security
Property type, value, location, marketability, title and priority.
Total leverage
Existing debt plus the proposed advance, interest, fees and costs.
Cash flow
Financial information where repayment relies on income.
Exit strategy
A clear, realistic and verifiable repayment source.
Experience
Relevant capability for acquisitions, construction or development.
Security and applicants
Who and what may be considered?
Depending on the transaction and proposed lender, applications may be considered from companies, trusts, partnerships, sole traders, developers, self-employed borrowers, commercial property investors and individuals borrowing for a genuine commercial purpose.
Potential security can include residential, commercial, industrial or retail property, development sites, vacant land, rural property, incomplete construction, completed development stock or multiple properties.
Property risk: Property offered as security may be at risk if the borrower does not comply with the loan obligations. Applicants should obtain independent legal, financial and taxation advice.
What to prepare
Information and documents
The documents required depend on the transaction. We may request:
- Identification and entity documents
- Trust deeds or company extracts
- Rates and mortgage statements
- Current payout figures
- Detailed use-of-funds breakdown
- Quotes, invoices or creditor statements
- Bank statements and financials
- Contracts of sale or leases
- Valuation or property evidence
- Development feasibility and budget
- Building contract or cost-to-complete
- Evidence supporting the exit strategy
From enquiry to settlement
Application process
- Submit your scenarioProvide the amount, exact commercial purpose, security position, timeframe and exit strategy.
- Preliminary assessmentWe review purpose, security, total leverage and the proposed repayment plan.
- Indicative proposalWhere the scenario appears suitable, indicative lender terms may be provided.
- Due diligenceSupporting documents, valuations, legal searches and other checks are completed.
- Formal approval and documentsThe lender may issue approval and loan documentation subject to conditions.
- SettlementSettlement occurs after lender, legal and borrower conditions are satisfied.
Common questions
Frequently asked questions
Can I use my home as security for a business-purpose loan?
Potentially. Residential property may be acceptable security for a genuine business-purpose facility. The proceeds must still be applied to the disclosed commercial purpose, and the security property may be at risk if obligations are not met.
Is up to 90% LVR available for every transaction?
No. Up to 90% LVR is a conditional maximum for selected scenarios only. Many transactions will require materially lower leverage. The outcome depends on the property, location, lender, total secured debt, costs, purpose and exit strategy, and may require additional security or a specialised structure.
Can interest be capitalised?
Some short-term facilities may allow interest to be prepaid or added to the loan. This increases the facility amount and LVR and is subject to sufficient equity, lender policy and an acceptable exit strategy.
Do I need financial statements?
Not for every scenario. Some private or short-term facilities focus on security, purpose and exit, but financial information may still be required—particularly where repayment depends on business or rental income.
Can you consider bad credit or mortgage arrears?
Potentially. The position must be fully disclosed, and the proposed facility must provide a credible solution rather than merely delay an unavoidable default without a realistic exit.
Can the loan be used to pay an ATO debt?
Potentially, where the liability is connected with a genuine business activity and the proposed facility forms part of a realistic restructuring and repayment plan.
Can I obtain a second mortgage without refinancing my bank?
Potentially. The outcome depends on the existing first mortgage, available equity, combined LVR, any consent requirements and the proposed exit.
How quickly can a business-purpose loan settle?
Timing depends on the lender, security, valuation, legal work, transaction complexity and how quickly complete information is provided. No settlement timeframe can be guaranteed before formal approval and due diligence.
Does an indicative quote guarantee funding?
No. Indicative terms are preliminary only. They are not formal approval, a binding offer or a guarantee of settlement.
Explore related options
Property-secured commercial finance
Important information
Business-purpose declaration and lending disclaimer
Applicants may be required to sign a declaration confirming that the credit will be applied wholly or predominantly for business or commercial purposes. A declaration must be accurate. It does not establish eligibility, guarantee approval, replace full disclosure or convert a consumer transaction into a commercial transaction.
Basic Finance Loans may act as a commercial finance broker, introducer, originator or representative. All applications are subject to verification of purpose, acceptable security, valuation, lender assessment, due diligence, documentation, costs and final approval.
This page provides general information only. It is not an offer of credit and is not financial, legal or taxation advice. Loan amounts, LVRs, rates, fees, terms and timing vary between transactions and lenders. Independent professional advice should be obtained before entering a loan.
Last reviewed: 19 July 2026
Confidential initial assessment
Discuss your business-purpose funding requirement
Provide the details below so we can assess the purpose, security position, indicative leverage and proposed exit. You can also call 0439 462 664 or email info@basicfinanceloans.com.au.
