A secured business loan is usually a financial product offered by a financial services lender with an Australian credit licence to small and medium-sized businesses for typically less risk than unsecured loans owing to the use of assets as collateral. Collateral acts as a security for the repayment of at least some – sometimes all – of the loan amount should a business default on loan repayments. For this reason, borrowers who choose secured business loans can sometimes access larger cash amounts, usually at a lower interest rate. The types of collateral a business can use to secure a small business loan usually include real estate properties – both residential properties and commercial premises – and other large capital assets like equipment and machinery. An unsecured business loan is a loan without the borrower providing assets to use as collateral to secure the loan. Prospa Loans requires no asset security upfront to access Prospa funding of up to $150,000.