What 'property-backed' actually means
In a property-backed transaction, a security interest is registered over a property so the loan is not supported by the borrower's promise to repay alone. Where the borrower defaults, the security defines the lender's position in a recovery process rather than removing the possibility of loss.
The security position, its ranking, and the documents that create it are set out in the formal offer material rather than in public marketing pages.
Why businesses use it
Businesses use property-backed structures where the funding need is genuine and business-purpose, and where the timing or structure does not suit a standard bank facility.
- Refinancing an existing business facility
- Short-term funding pending an identified exit or refinance
- Business-purpose property improvement or fit-out
- Working capital where the business can support the repayment position
What it does not change
Security does not make a loan safe. Property values move, recovery takes time and costs money, and a shortfall is possible. Every LendCap opportunity is assessed before presentation to registered lenders, and each lender makes their own decision using the formal offer information.
