Finance question
Can I get a business loan against a warehouse I own?
Often yes. A warehouse you own is strong commercial security, so the equity in it can back a business facility up to the $5 to 6 million range at single-digit rates. Many of these deals settle with no financials, sized to the equity you hold.
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The short answer
Your warehouse equity does the heavy lifting
Warehouses are the kind of commercial security lenders like. They hold value, they have a clear market, and they are usually owned by a trading business that needs working capital or growth funds. If you own the shed outright, or hold solid equity in it, that equity can be released as a business facility rather than sitting idle on the balance sheet.
The rate stays low because real estate secures it. A warehouse-backed facility sits at single-digit rates, closer to a home loan than to an unsecured business loan or an overdraft. That security is also why many of these deals go through without up-to-date financials, which suits owners who are mid-year or between tax returns.
The funds can go where the business needs them, whether that is stock, a fit-out, new plant, a deposit on a second site, or paying down more expensive debt. What you can draw is driven by the warehouse valuation and how much of it you already own, not by a flat cap.
Do you qualify?
What makes a warehouse deal fundable.
You own the warehouse
Held outright or with real equity in it.
Usable equity
Value minus what you still owe is what sizes the facility.
An active ABN
Companies, trusts and sole traders all qualify.
A clear purpose
Stock, plant, a deposit, or paying down costly debt.
Why a warehouse backs a strong facility
Commercial security
A warehouse is a solid asset lenders extend large limits against.
Single-digit rates
Real estate security keeps the pricing in single digits, not double.
Light on paperwork
With equity carrying the deal, many facilities need no financials.
A real example
An importer owns a Truganina warehouse valued at $1.6m with a $500k loan, so about $1.1m in equity. That equity supports a facility well into seven figures at a single-digit rate, drawn to fund a container run and a mezzanine fit-out. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
Does the warehouse need to be paid off?
No. You can borrow against the equity even if there is still a loan on it, as long as there is usable equity left.
Can I stay in the warehouse while it secures the loan?
Yes. Using it as security does not stop you trading from it as normal.
Do I need financials to borrow against it?
For many property-backed deals, no. The equity does the heavy lifting, subject to lender assessment.
What can the funds be used for?
Working capital, stock, plant, a deposit on a second site, or paying down higher-rate debt.