Second Mortgage Business Loans
in Australia
A second mortgage business loan lets you use the equity in your property without refinancing or touching the first mortgage you already have in place. Dark Horse Financial arranges second mortgage business loans through its large lender panel of bank, non-bank and private lenders, and a lot of them look at your equity and exit strategy more than strict income tests so funding can come together within days.
*Up to 100% LVR second mortgages are available for trading businesses that can demonstrate servicing from bank statements, subject to lender criteria.
Quick Enquiry
Get a free, obligation-free assessment. Usually responds within 2 hours.
How to Apply for a Second Mortgage Business Loan
Three steps from your first enquiry to funds landing in your account.
Contact Our Team
Send through a quick enquiry or give us a call. We'll ask a few questions about the property, your equity and what the funds are for, then come back with a recommendation.
Contact Us →Submit Your Application
We handle the application from start to finish and place it with the lender on our panel that suits your timeline, some of them can approve within a matter of days.
Start Application →Get Funded
Once approved the documents are usually signed electronically, and after settlement the lender releases the funds while your first mortgage stays right where it is.
Get Funded →Rated by Our Clients on Google
Second Mortgage Business Loans for Australian Businesses
A second mortgage business loan is secured by a registered second-ranking mortgage over a property that already has a first mortgage on it. If that property is ever sold the first lender is repaid first and the second lender gets paid after, which is why lenders focus on your available equity and your exit strategy.
How a Second Mortgage Works
The lender values your property and looks at what's still owing on the first mortgage to work out how much equity is available. Combined lending across both mortgages typically goes up to 70% to 80% of the property's value, though some lenders will go up to 100% LVR for trading businesses that can demonstrate serviceability, and the funds are paid out as a lump sum. Terms run from 3 months to 5 years and many are interest-only, with the principal repaid at the end through a refinance, a sale or business cash flow, which is why the exit strategy sits at the centre of the whole assessment.
Up to 100% combined LVR
Your first and second mortgage together typically sit within 70% to 80% of the property's value, but some lenders can go up to 100% LVR.
3 months to 5 years
Terms are built around how and when you plan to repay, not a standard 25 or 30 year schedule.
Exit strategy first
Refinance, sale or cash flow, the lender wants to see a realistic way out before it says yes.
What Can a Second Mortgage Business Loan Be Used For?
A second mortgage for business can be put towards most legitimate business purposes, and these are the ones we see most often.
Topping up working capital when the business is growing faster than its cash
Covering short-term cash flow gaps like slow-paying customers or a seasonal dip
Funding expansion, a fit-out or a move into new premises
Buying stock or equipment ahead of a big contract
Consolidating business debts, including ATO debt, see our tax debt loans
Moving quickly on a time-sensitive opportunity before it disappears
Second Mortgage vs Caveat Loan
A second mortgage is registered on the property title, whereas a caveat loan is secured by an unregistered caveat that stops the property being sold or refinanced until the debt is cleared. Caveat loans are usually shorter and faster to set up so they suit urgent needs over weeks or a few months, while a business second mortgage is generally the better fit for longer terms and larger amounts. Compare our caveat loans or read the full breakdown of caveat vs second mortgage.
What Lenders Look For: Am I Eligible?
Lenders on our panel weigh up four main things.
- Available equity, with most wanting around 20% left in the property after the loan
- A clear exit strategy, whether that's a refinance, a sale or business revenue
- Property type and quality, including its location and condition
- Loan size and purpose, and whether they stack up against the property value
A patchy credit file isn't always a deal breaker either, plenty of private lenders put less weight on credit history and more on the equity and the exit, though each lender still makes its own call.
Second Mortgage Success Stories
A Transport Business Short on Cash Flow, Backed by a Second Mortgage
Challenge: A large transport business had traded poorly for two years, cut costs and cleaned up old debts, then got hit by a fuel crisis just as things were turning around and needed cash flow to keep paying suppliers on time.
Solution: Dark Horse arranged a $300,000 overdraft limit through a non-bank lender on our panel, secured by a second mortgage over property the owners held equity in, with no establishment, line or monthly fees.
Outcome: The facility was in place in under two weeks, and the lender will release the security once the business meets its normal unsecured standard.
Why Choose Dark Horse Financial for a Second Mortgage?
Large Lender Panel
Access to bank, non-bank and private lenders, including ones that specialise in second-position lending, so you're not stuck with a single credit policy.
Credit-Licensed Broker
Dark Horse arranges finance through its lender panel as a credit-licensed broker, so we're working for you and not for the lender.
Exit Planned Before You Sign
We map out how the loan gets repaid before anything is signed, so the term and structure actually line up with your plan.
To see what your equity could do for the business, contact our team for a no-obligation chat.
The information on this page is general in nature and doesn't take into account your objectives, financial situation or needs. All finance is subject to lender approval, terms and criteria. Fees and charges apply.
Frequently Asked Questions
Common questions about second mortgage business loans, answered directly.