SME Owners: HomeFlex vs Unsecured Business Loans

Running a small business in Australia often means juggling growth opportunities with lumpy cash flow. When a chance pops up to buy stock at a discount, retain a star hire, or launch a new product you typically reach for unsecured business finance. But if you own a home with equity, there’s another option that’s very different to a conventional loan: HomeFlex. 

This guide compares HomeFlex and unsecured business loans on what matters most to SME owners: cash flow pressure, approval hurdles, risk to personal assets, and total cost over time. 

The 30‑second summary 

• HomeFlex lets eligible homeowners unlock up to $1M of equity with no interest and no monthly repayments. You stay solely on title and repay when you sell, refinance, or buy out our share; we make money by taking a share of your home’s future capital growth (typically one‑third). No business financials or trading history are required for the business‑funding use case.  
• Unsecured business loans are fast and flexible, but they add a repayment from day one and often require a personal guarantee. Headline rates vary widely; a useful benchmark is the RBA’s small‑business lending rate (~6–7% across all small‑business loans), while many unsecured products advertised by lenders/aggregators start in the low‑to‑mid teens and can run higher depending on risk. 
  

What that means for your cash flow 

Example repayments on unsecured loans (illustrative): 

• $200,000 at 12% p.a. over 3 years → about $6,642/month; total interest ≈ $39,143 

• $200,000 at 15% p.a. over 3 years → about $6,933/month; total interest ≈ $49,590 

• $250,000 at 18% p.a. over 3 years → about $9,038/month; total interest ≈ $75,372 

Point is, repayments hit your cashflow immediately. If revenue is seasonal or a customer pays late, those fixed debits can really squeeze you. 

With HomeFlex, there are no monthly repayments. You repay when you sell/refinance or when you choose to buy us out; we earn our return as a share of your home’s future capital growth instead of interest. That can be a better fit for investments that take time to mature (new locations, product development, marketing that pays back over several quarters).

About risk (and personal guarantees) 

• Unsecured loans & guarantees. Many small‑business lenders require a personal guarantee, which allows them to pursue you personally if your company can’t repay putting personal assets at risk.  

• HomeFlex. You’re not adding a new principal‑and‑interest debt, and you remain solely on title. We secure our position over the property; you repay later (sale, refinance, or buyout). For the business‑funding use case, no business financials or trading history are required. 

FAQs 

• How much can HomeFlex provide? Typically up to $1,000,000, depending on your home’s value and equity. We arrange an independent valuation. 

• Does checking eligibility hit my credit score? No, our eligibility check won’t impact your credit score. 

• When do I repay HomeFlex? When you sell, refinance your mortgage, or buy us out with no monthly repayments in the meantime. 

• Do unsecured loans really need a personal guarantee? Frequently, yes, guarantors may be liable for the entire debt and risk losing secured assets if things go wrong. Read guarantees carefully and seek advice. 

Is HomeFlex Right for You? 

Learn how you can access the equity in your home without taking on additional debt. Visit our HomeFlex page to see if you're eligible and speak to a specialist today: 

Explore HomeFlex today!