Property-secured finance for importers: when the order outgrows the overdraft

When does an importer need property security?

Turnover-based facilities work well up to a point. They’re sized on what’s moving through your bank account, which means they grow with the business — but sometimes the opportunity grows faster. Situations where property security usually comes into the conversation:

• A step change in volume — a new national retail account, a new range or a price break that needs a much larger order.
• Several containers at once — for example, stocking up ahead of an expected tariff change or a peak season.
• Short trading history — a newer importer with a strong order but not yet the bank statements to support a large unsecured amount.
• Past credit issues or ATO debt — considered case by case, where security can help.
• Buying stock at a discount — a supplier clearing a production run or a distressed purchase with a short window.

In each case the question is the same: is the opportunity worth putting property behind? A clear view of the landed cost, the selling price and how quickly the stock turns into cash is what answers it — not the size of the equity.

What structures are possible?

Structure	How it works	Often used for
First mortgage	The loan is the main registered mortgage over the property	Unencumbered property or refinancing existing debt
Second mortgage	Sits behind an existing mortgage, using available equity	Keeping your home loan in place while funding the business
Caveat loan	A caveat is lodged on title rather than a registered mortgage	Shorter-term needs where speed of setup matters

Property can be residential or commercial. Property-secured business loans range from $20,000 to $5,000,000, and the funds must be used for business purposes.

How is the amount worked out?

Three things drive it:

1. The property — its value and the debt already against it. The available equity sets an outer limit.
2. The business need — what the order, deposits and landed costs actually add up to. Borrowing more than the order needs isn’t smart just because the equity is there.
3. The repayment plan — how and when the loan is repaid. For stock, that’s usually sales over the following months; for a longer-term build-up of inventory, it may be a longer term.

Run your order through the landed cost and funding gap calculator so you know the real number before you ask. If you’d like a person to look at the property and the order together, start a short enquiry — no credit check to ask.

What are the risks of using property for stock?

This deserves a straight answer. When property secures a business loan, the property is at risk if the loan isn’t repaid. For importers, the main risks are:

• Stock that doesn’t sell at the price or pace you planned.
• Landed costs that blow out — freight, exchange rates or a duty surprise.
• Delays that push sales into a weaker season.

You can manage these by confirming duty and classification before ordering, pricing on a conservative exchange rate, building a time buffer into the plan, and having a clear exit — how the loan comes down as the stock sells. Our guides on pricing imported products and the import order calendar help with the planning.

Can property-secured funding be revolving?

Some property-secured facilities can be structured to be drawn over time, which suits regular importers. Others are a lump sum repaid over a term or on a set date. The right structure depends on whether you’re funding one big order or an ongoing pattern. If it’s ongoing, compare against an import line of credit, which may be secured by property for a larger limit.

Illustrative example

Illustrative only. A two-year-old importer of outdoor furniture wins a spring program with a large retailer that needs four containers landed by August. The order is solid, but the business’s bank statements only support a modest unsecured limit. The owners hold commercial property with substantial equity. A second mortgage over that property funds the deposits, balances and border costs for all four containers, and the loan is paid down as the retailer pays its invoices through spring.

How does property-secured funding compare with unsecured options?

	Unsecured / line of credit	Property-secured
Typical amount	$5,000 – $500,000	$20,000 – $5,000,000
Sized on	Turnover and bank statements	Property equity, plus the business situation
Security	None over property	Residential or commercial property
Suits	Regular orders within your turnover	Step changes, big builds, shorter trading history

Many importers use both: a turnover-based line of credit for routine orders, and property-secured funding for the occasional big move. The two aren’t competing choices so much as tools for different sizes of job.

What do I need to have ready?

Nothing formal to enquire. Once you decide to proceed, expect to provide:

• property details — address, estimated value, existing loans against it
• business bank statements and recent financials where available
• the order — supplier pro-forma, payment terms, expected arrival
• how the stock will sell and be paid for
• ID for directors and property owners

Put the property to work for the business

If an order is bigger than your current facilities can carry and there’s property in the picture, see if you qualify with Trade Loan. There’s no credit check to enquire, and your details aren’t passed around a group of lenders — one person handles them. They’ll call to understand the property, the order and how the loan would come down. Please answer the form accurately, especially about property and existing loans, so we can match you properly first time.