Quick answer
Secured lending is any borrowing backed by an asset the lender can turn to if the loan isn't repaid. Asset finance is one kind of secured lending, where the vehicle or equipment being bought is itself the security, recorded on the Personal Property Securities Register. Property-secured lending uses real estate instead, recorded on the land title, so it can fund almost any business purpose, including assets a financier won't touch.
Key points
- All asset finance is secured lending, but not all secured lending is asset finance
- Asset finance secures the item being bought; property-secured loans use real estate
- Machinery and vehicles sit on the PPSR; land, buildings and fixtures sit on the land title
- Asset finance suits new, standard equipment repaid over its working life
- Property equity suits used, specialised or auction assets, and needs that aren't an asset at all
Ask ten business owners what “secured lending” means and you’ll hear two different answers. Some picture a mortgage over a house or warehouse. Others picture the loan on the company ute. Both are right, which is exactly why the terms get muddled, and why owners sometimes end up with the wrong kind of finance for the job.
The short version: secured lending is the family; asset finance is one member of it. The difference that matters in practice is which asset carries the loan, and that decides what the money can be used for, how fast it moves and who will say yes.
What is secured lending?
Secured lending is borrowing backed by an asset the lender can turn to if the loan isn’t repaid. The government’s small business guidance puts it simply: “A secured loan is backed up by collateral or security.” An unsecured loan, by contrast, rests on the business’s finances alone; our secured vs unsecured comparison covers that split, and the 2026 guide to business loan types maps the wider market.
The asset can be almost anything of value:
- real property, such as a home, rental, shop, factory, farm or vacant block, recorded on the land title by a mortgage or caveat;
- movable goods, such as vehicles, machinery and equipment, recorded on the Personal Property Securities Register (PPSR);
- other business assets, such as receivables or a whole company’s assets under a general security arrangement.
Our secured lending page explains property-backed lending in depth.
What is asset finance?
Asset finance is secured lending where the thing you’re buying is the security. You want a truck, an excavator or a coffee machine; the financier pays for it and takes security over that same item. business.gov.au notes that when you borrow to buy a vehicle or equipment, “you can often use that asset as security for the loan”.
The main forms you’ll meet are:
- Chattel mortgage. You own the asset from the start and the financier holds security over it until the loan is repaid.
- Hire purchase. You pay in instalments and, as business.gov.au describes it, own the asset once the final payment is made.
- Finance lease. The financier owns the asset and you pay to use it, usually with a residual amount at the end.
- Operating lease or rental. You use the asset for a period and hand it back.
Security over these goods is recorded on the PPSR, which describes itself as an “online government noticeboard of security interests in personal property”.
Which register holds the security, and why does it matter?
This is the cleanest way to tell the two apart. The PPSR glossary defines personal property as property “other than land, buildings and fixtures to land”. So:
| Asset | Where the lender’s security is recorded |
|---|---|
| Vehicles, machinery, tools, removable equipment | Personal Property Securities Register |
| Land, buildings and anything fixed to them | The state or territory land title |
It matters for two reasons. First, a property mortgage generally doesn’t cover your removable machinery, and equipment finance doesn’t touch your property title. Second, when you buy used goods, a PPSR search tells you whether someone else already holds security over them. The PPSR offers a low-cost search for exactly that purpose, and it’s worth running before you pay for anything second-hand.
How do asset finance and property-secured lending compare?
| Asset finance | Property-secured loan | |
|---|---|---|
| Security | The vehicle or equipment being bought | Real estate you or a related party own |
| What it can fund | That asset only | Almost any business purpose |
| Typical term | Matched to the asset’s working life | Short, with a defined exit |
| Repayments | Usually monthly from the start | Ours have none for the first 6 months, with interest capitalised |
| Used, old or specialised items | Often declined, discounted or deposit-heavy | Assessed on the property, not the item |
| Credit problems | Can be a barrier | Bad credit, defaults and ATO debt considered |
| Typical cost | Lower for standard, new assets | Higher, priced on the property and exit |
Neither is better in the abstract. Each is built for a different kind of purchase.
When does asset finance make more sense?
Asset finance is usually the right tool when:
- the asset is new or near-new and standard, such as a mainstream ute, truck or forklift;
- you’ll keep it for years and want repayments spread over its working life;
- your trading and credit history are solid, so the financier is comfortable;
- nothing else needs funding alongside it.
In that situation, tying up property equity makes little sense. Keep the property free for the day you need it for something asset finance can’t do.
When does property-secured lending make more sense?
Property-secured funding earns its place when the asset or the situation doesn’t fit an asset financier’s rules:
- Used, older or specialised equipment that a financier won’t lend against, or will only lend a fraction of.
- Auction purchases where payment is due within days, before a financier can inspect. See buying at auction with property equity.
- Mixed needs, such as a machine plus the installation, the fit-out, the stock to run it and the wages while it’s commissioned.
- Credit problems or ATO debt that block mainstream approval.
- Speed, when funding in as little as 24 hours from a clean, complete application matters more than the lowest price.
We lend $20k to $5m against residential, commercial, industrial or rural property or vacant land, for business purposes only. If that sounds like your situation, see what your property can support in about a minute. Our page on buying equipment with property equity goes deeper on the equipment side.
Can you use both together?
Yes, and many owners do. The two work well in sequence:
- Property-secured loan first. It pays for the asset immediately, at auction or from a private seller, with no inspection or approval tied to the machine.
- Asset finance second. Once the equipment is in your yard, serviced and documented, an equipment financier refinances it over its working life.
- The property loan is repaid from that refinance. Open terms mean you can repay early anytime with no penalty.
The property-secured loan is the bridge; the asset finance is the long-term home.
How does the instant asset write-off fit in?
Tax isn’t decided by how you pay, but it can change the real cost of what you buy. The ATO’s small business newsroom confirms the $20,000 instant asset write-off is permanent from 1 July 2026 for businesses with aggregated turnover below $10 million, on assets costing less than $20,000 that are first used or installed ready for use in the year of the claim. Larger assets are depreciated over time instead. Talk to your accountant about how the timing of a purchase and the way it’s financed interact before you commit.
Illustrative example: a used excavator at auction
Illustrative only: a made-up earthmoving business with round figures.
A Bendigo earthmoving contractor finds a six-year-old excavator at a clearing sale with $140k payable within three business days. Two asset financiers decline: the machine is older than their limit, and there’s no time to inspect it.
The owner holds a debt-free industrial shed, assessed at around $600k. A first mortgage over the shed funds the $140k plus $20k for transport and a service. Illustrative: that’s about 27% of the shed’s assessed worth, well inside the commercial limit. With interest capitalised there’s nothing to pay for the first 6 months. Four months later, with the machine working and serviced, a specialist plant financier refinances it, and the property loan is repaid in full.
Need more than an asset financier will give? See if you qualify
Equipment finance is a great tool until the asset is too old, too specialised or too urgent for it, or until what you really need isn’t an asset at all. That’s where property equity comes in.
The enquiry takes about 60 seconds and involves no credit check, so your score isn’t affected just for asking. It goes to us alone as the direct lender rather than out to a pile of lenders, and a specialist who understands both kinds of finance calls you to talk it through. Answer the property and debt questions accurately, and you’ll get an answer you can plan around.
Frequently asked questions
Is asset finance cheaper than a property-secured loan?
Often, for a new, standard asset. The item holds its value well and the loan runs over its working life, so the risk is easy to price. For used, specialised or hard-to-resell equipment, asset finance may be declined or need a large deposit, and property-secured funding can be the more practical choice despite the higher cost.
Can I use a property-secured loan to buy equipment and refinance it later?
Yes, and it's a common pattern. A short-term property-secured loan pays for the equipment quickly, for example at an auction, and an equipment financier refinances it once the machine is in your yard and inspected. The property loan is then repaid.
Does asset finance appear on a land title?
No. Security over vehicles and equipment is recorded on the Personal Property Securities Register. Security over land, buildings and fixtures is recorded on the land title by a mortgage or caveat.
Can asset finance pay for a tax bill or stock?
Generally not. Asset finance is tied to the asset being bought. A tax bill, wages, stock or a fit-out with little resale value usually need a different kind of funding, such as a property-secured loan.
Does the instant asset write-off change which option I should choose?
Not directly. The ATO's write-off depends on the asset and your business, not on how you paid for it. It can change the after-tax cost of the purchase, so ask your accountant before you buy.
Is a chattel mortgage the same as a mortgage over property?
No. A chattel mortgage is security over movable goods, such as a vehicle or machine. A property mortgage is security over land and buildings, registered on the title.