Quick answer
Leasing your premises doesn't stop you getting business finance. Unsecured lenders look at the business's turnover and bank statements, not the building. They will usually ask how long is left on the lease, whether rent is paid on time and whether the location is stable, because a secure tenancy supports the cash flow that repays the loan.
Key points
- Commercial tenants are the norm, not the exception, for unsecured business lenders.
- Remaining lease term and rent history are part of the cash-flow story a lender reads.
- Fit-outs, bonds and relocation costs can often be funded without pledging property.
- Rent arrears show up in bank statements, so catching up before applying helps.
- Property needed?
- No, the lease is enough context
- Typical unsecured range
- $5,000 to $500,000
- Useful to have
- Lease summary and rent ledger
Is it harder to borrow when you don’t own your premises?
Not for the kind of finance most trading businesses actually use. Cafés, clinics, workshops, salons, studios and warehouses overwhelmingly lease their space. Unsecured lenders build their whole assessment around that reality. They are not lending against the building, so whether you own it barely enters the picture.
What does matter is that the premises keep producing income. business.gov.au lists lease agreements among the documents a lender may ask for, alongside financial reports and cash flow statements. The lease is context: it shows where the revenue comes from and how secure that source is.
What does a lender want to know about your lease?
Expect a handful of practical questions, particularly for larger amounts:
| Question | Why it matters |
|---|---|
| How long is left on the lease, and are there options? | The lender wants the business to keep trading for at least the life of the loan. |
| Is rent paid on time? | Rent is usually the biggest fixed cost; missed payments show up in statements. |
| Are you moving, expanding or subletting? | Changes in premises change the cash-flow picture. |
| Is the funding for the premises itself? | Fit-outs and fixtures can involve the landlord. |
None of these need perfect answers. A lease with 18 months left and a renewal option is a common, fundable position. A tenancy about to end with nowhere lined up is harder, and it’s better to say so upfront than have it discovered later.
What can tenants use unsecured funding for?
Tenants use unsecured facilities for the same things any business does, plus a few costs that only come with leasing:
- Bonds and bank guarantees required when signing or renewing a lease.
- Fit-outs and refurbishments, from joinery and lighting to cool rooms and signage. Our page on fit-outs for tenants covers this in more detail.
- Moving costs when relocating to a bigger or better site.
- Rent in a quiet season, where the business is sound but cash timing is off.
- Make-good costs at the end of a lease, when the space must be returned to its original condition.
If the premises cost is equipment that can be removed and resold, equipment finance can use the asset as its own security and leave your unsecured capacity free for everything else.
What if you’re behind on rent right now?
Rent arrears are one of the first things an assessor spots in bank statements, because the payment pattern changes. It doesn’t automatically end the conversation, but it shifts it. Lenders want to know:
- Why it happened (a slow quarter, a customer who didn’t pay, a one-off repair).
- Whether the landlord has agreed to a catch-up plan.
- Whether the funding will fix the cause or only the symptom.
A business that fell behind because a large client paid late is a very different risk from one whose revenue has been falling for a year. If you’re in the first group, funding tied to the underlying cause, such as invoice finance for slow payers, can make more sense than a lump sum.
When you’re ready, you can tell us about the premises and the need in a short form and a specialist will call.
How do you prepare before asking for funding?
A little preparation turns a tenancy from a question mark into a strength:
- Keep a one-page lease summary: start date, end date, options, current rent and next review.
- Download six to twelve months of business bank statements, making sure rent is paid from the business account, not a personal one.
- Know your fit-out quotes if the funding is for the premises. Lenders like a figure backed by a quote.
- Lodge any outstanding BAS, even if the balance can’t be paid yet. A lodged BAS with a payment plan reads far better than an unlodged one.
For a fuller picture of what an assessor reads in your account, see what lenders look for in bank statements. And if you’re about to sign a new lease, our guide to the upfront cash a commercial lease needs will help you budget before you commit.
Should a tenant ever consider property-secured funding?
Only if the tenant happens to own property elsewhere and the amount needed is beyond what the business’s cash flow supports unsecured. Property-secured business loans run from $20,000 to $5,000,000. For most tenants, that’s not the starting point, and it doesn’t need to be.
Does the type of lease make a difference?
It can. Retail leases in shopping centres, strip-shop leases, office leases and industrial units all come with different norms for term, outgoings and fit-out. Lenders don’t need you to be an expert, but a few details help them read your position:
- whether the lease is registered or unregistered;
- whether you’re the original tenant or took over an assigned lease;
- whether any personal guarantee was given to the landlord.
If you gave the landlord a personal guarantee or bank guarantee, mention it. It’s part of your overall commitments and a lender will want the full picture.
Leasing is normal. Let’s talk about your numbers.
You don’t need to own the building to fund what happens inside it. Send a 60-second enquiry with an honest picture of your turnover, lease and what the money is for. Nothing hits your credit file when you enquire, we don’t spray your details to a dozen lenders, and a real person will ring you to work through it.
Accurate answers save everyone time, so please give your real monthly turnover and trading history rather than a best guess. Check your options now.
Frequently asked questions
Will a lender want a copy of my lease?
Sometimes. For larger amounts or funding tied to the premises, such as a fit-out, a lender may ask for the lease or a summary showing the term, options and rent. For smaller working capital, bank statements usually tell the story on their own.
My lease ends in six months. Is that a problem?
It can raise a question, because the lender wants to know the business will keep trading from somewhere. If you have an option to renew or a new lease lined up, say so in the enquiry. It turns an unknown into a plan.
Can I borrow to pay a lease bond or bank guarantee?
Often, yes, as part of a working capital facility for a trading business. The lender will want to see the business can carry the repayments alongside the new rent.
Does the landlord need to know I'm borrowing?
For an unsecured loan, generally not. Where equipment or fixtures are financed and installed in the premises, some financiers ask for landlord acknowledgement so they can recover the goods if needed. We'll tell you if that applies.