If you need Working capital and you have equity in a property, a second mortgage can be a clean, fast way to unlock cash without disturbing your first mortgage. At Secured Lending, we’ve advised and assisted borrowers to access Working capital secured against property equity, and we’ve facilitated over 200 strategic second mortgages to help businesses move with confidence. If timing matters, we can help you move fast with a second mortgage loan for Working capital. Assess your scenario today.
What is a second mortgage for Working capital?
A second mortgage sits behind your existing first mortgage and leverages your available equity to fund business needs. You keep your primary loan in place and simply add a secondary facility that’s purpose-built for Working capital—cash to cover short-term requirements or to seize opportunities without selling assets or diluting ownership.
When does it make sense?
- You’re facing a short cash flow gap between payables and receivables.
- You have a time-sensitive stock purchase at a discount.
- You need to complete renovations, fit-outs, or equipment upgrades.
- You want to fund marketing, hiring, or project ramp-up while maintaining liquidity.
- You’re bridging timelines: waiting on a property sale, a refinance, or a large debtor payment.
Key benefits of a second mortgage for Working capital
- Speed without disruption: You don’t need to rework your first mortgage. That cuts friction and often reduces documentation, allowing fast decisions and execution.
- Keep control: Use your equity, retain ownership, and avoid bringing in outside investors for Working capital.
- Purpose-built terms: Short to medium terms can match your cash flow cycle, with interest-only options to keep repayments manageable during the deployment phase.
- Flexibility on use: Fund stock, payroll, marketing, contractor progress claims, or settlement adjustments—simple, practical uses that move the needle.
- Potentially lower cost than unsecured options: Because the loan is secured against property equity, pricing is often sharper than unsecured Working capital lines.
- Clear exit: Repay from incoming settlements, receivables, refinancing, or trading profits—known end points reduce carry time and total cost.
What to consider before proceeding
- Equity position: Your available equity drives how much you can draw. You may be able to borrow up to $10 million depending on your property value and overall position.
- Total debt picture: We review your first mortgage, any other encumbrances, and the planned exit. The goal is a clean, workable structure.
- Term and repayments: Align the term with the cash event that will clear the facility. Interest-only can help preserve cash during execution.
- Costs and rate: We provide transparent fees and an indicative interest rate of 11.95% subject to scenario, term, and risk. Certainty beats surprises.
- Security: With Secured Lending, you can leverage residential or commercial property as collateral/security. We don’t accept obscure assets as collateral.
How second mortgages compare to other options
- Versus unsecured loans or overdrafts: A second mortgage is secured, so limits can be higher and pricing more stable. Unsecured lines may be faster in some cases, but often cap out when you need larger Working capital.
- Versus refinancing your first mortgage: Full refinance can take time and may not fit a tight window. A second mortgage preserves your existing rate and relationships while you get the funds you need now.
- Versus caveat loans: Caveats can be useful for very short terms. Second mortgages typically offer more structure, visibility, and flexibility when you need Working capital beyond a few weeks.
- Versus bridging loans: Bridging loans are great for buy-then-sell property timelines. If your core need is operational Working capital, a second mortgage can be better aligned.
Why Secured Lending for Working capital secured against property equity
- Speed when it matters: We arrange same day settlement where possible, with funding within 24 hours for straightforward scenarios. If you have an urgent settlement or an emergency cash requirement, we coordinate quickly and communicate clearly.
- Practical structuring: We assess your property equity, review your first mortgage, and confirm a clear exit strategy. You get a straight answer and a tailored facility.
- Deal certainty: We are a private lender with a streamlined credit process. You work with decision-makers, not layers of committees. That means less friction and faster outcomes.
- Scale and experience: We’ve facilitated over 200 strategic second mortgages. Our focus is urgent, short-term needs—fast Working capital, bridging loans, and secured business loans when time is critical.
Private Lender — national, non-bank support
As a private lender in Australia, we operate Australia wide: Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. We’re a non-bank lender, so we can move quickly, assess your scenario on its merits, and structure second mortgage facilities to fit your timeline and exit. If your requirement is urgent, we prioritise clean documentation, verified valuations, and simple conditions to help you execute.
How we work, step by step
- Review: You outline the Working capital purpose, property security, and timing.
- Verify: We confirm title position, equity, and supporting documents.
- Structure: We propose terms aligned to your exit—sale, refinance, receivables, or profit.
- Coordinate: We work with your solicitor and any existing lender to manage consents.
- Settle: We arrange same day settlement where viable; otherwise, funding within 24 hours after conditions are met.
- Support: We check in during the term and coordinate your exit on schedule.
Use cases we support
- Stock buys at a discount that won’t wait.
- Contractor mobilisation and payroll ahead of project milestones.
- Fit-outs and equipment upgrades that lift capacity.
- Settlement adjustments or tax obligations that need clean, quick payment.
- Short-term bridging of receivables or property events.
How We Can Help
If you’re considering a second mortgage loan for Working capital, our role is to reduce friction, protect your time, and get you funded with clarity. We review your equity, structure a practical facility, and coordinate a smooth path to settlement. Whether it’s an urgent settlement, a time-sensitive purchase, or an emergency need, our team is steady under pressure and focused on outcomes.
Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions such as bridging finance, second mortgages, and caveat loans. We have provided strategic lending advice for this in the past and can help assess your scenario.
FAQs
1) How fast can I access funds with a second mortgage for Working capital?
For straightforward scenarios, we can achieve same day settlement, with funding within 24 hours once conditions are satisfied. Complex titles or consents may add time, but we keep things moving.
2) What properties can I use as security?
We accept residential and commercial property across Australia. We don’t accept other obscure assets as collateral; clear property security supports speed and certainty.
3) How much can I borrow?
Subject to equity, property type, and overall position, you may be able to borrow up to $10 million. We’ll confirm an appropriate limit after review.
4) What will it cost?
Pricing reflects term, risk, and structure, with an indicative interest rate of 11.95% plus standard fees. We provide transparent terms before you commit.
5) What’s my exit strategy?
Common exits include receivables, settlements, refinancing, or project profits. We help plan and confirm the exit up front so your Working capital serves its purpose and the facility clears on time.
Looking for a secured business loan for your next opportunity? Secured Lending is ready to help you move forward.
