Finance question
Can I get a business loan against a factory?
Often yes. A factory is industrial commercial security, and the equity you hold in it can back a business facility up to the $5 to 6 million range at single-digit rates. New businesses qualify too, with no long ABN history needed, sized to your equity.
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The short answer
Industrial property makes a fundable base
A factory is exactly the type of asset property-backed lending is built for. It is a substantial industrial holding, usually owned by the manufacturer or processor that operates from it. If you own the building, the equity sitting in it can fund the business instead of staying locked in the bricks and machinery around them.
Manufacturing runs on lumpy costs, a new production line, a large raw-material order, a compliance upgrade, or a bridge while a big customer pays. Because the factory secures the facility, the rate lands in single digits rather than the double-digit pricing of unsecured business lending, which keeps the cost of those moves manageable.
You do not need years of trading behind you. Property-backed finance can support newer manufacturers with no long ABN history, because the lender's comfort comes from the real estate, not from a decade of financials. What you can draw is set by the factory valuation and your equity in it.
Do you qualify?
What makes a factory deal fundable.
You own the factory
Held outright or with genuine equity in it.
Usable equity
Value minus the debt on it is what sizes the loan.
A trading purpose
A new line, a materials order, a compliance upgrade.
An active ABN
Newer manufacturers can qualify, no long history needed.
Why a factory backs serious funding
Substantial security
Industrial property carries large limits that unsecured lending cannot.
Single-digit rates
Real estate security keeps the pricing in single digits.
Newer businesses fit
The property, not a long trading record, carries the deal.
A real example
A food manufacturer owns a Dandenong factory valued at $2.2m with $700k owing, leaving about $1.5m in equity. That equity supports a seven-figure facility at a single-digit rate, drawn to install a new packaging line ahead of a supermarket contract. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
Can I borrow against a factory that still has a mortgage?
Yes, as long as there is usable equity above the current loan. That equity is what sizes the facility.
Does my manufacturing plant count as security too?
The property is the security here. Plant and equipment can be funded separately through asset finance.
My business is only two years old, does that rule me out?
No. Property-backed finance can support newer manufacturers, subject to lender assessment, because the real estate carries the deal.
How large a facility can a factory support?
Facilities reach the $5 to 6 million range, with your own limit set by the factory value and your equity.