Secured Loan Agreements - FAQ's

What is a Secured Loan Agreement?

A Secured Loan Agreement is a simple Loan Agreement between two parties.

What are Secured Loan Agreements used for?

Secured Loan Agreements are used as a vehicle to secure a loan against the assets of the business receiving the loan.

Who Would Potentially Use a Secured Loan Agreement?

Secured Loan Agreements are used by business owners or investors wanting to loan to, or invest in a business.

How Can I Use A Secured Loan Agreement to Become a Secured Creditor?

Our Secured Loan Agreements are designed and incorporate the appropriate legislation to ensure the lender can register a valid PPSA Registration and in doing so, become a secured creditor.

What is the Personal Property Securities Register?

The Personal Property Securities Register is simply an online notice board which is a register of security interests paced by businesses and individuals against the businesses or individuals to which they extend credit.

Why is Becoming a Secured Creditor so Important?

By becoming a Secured Creditor against your clients’ businesses, you are protecting any payments your company receives from that client and ensuring those payments aren’t subject to Preferential Payment Clawback.

What is Preferential Payment Clawback?

Since the introduction of the PPSR liquidators now has the right to claw back any payments made to an unsecured creditor, in the previous 6 months from the date of liquidation in favour of a secured creditor.

This means that if one of your clients was to file for liquidation and you haven’t registered on your clients PPSR and become a secured creditor, you could lose the last six (6) months of payments made to you by that particular client.

Where is Personal Property Securities Register Located?

It is located online and is an Australian Federal Government Program and is managed specifically by the Australian Financial Security Authority.

How do I Register a Secured Loan Agreement?

Once your Secured Loan Agreement has been signed you simply go to the Australian Governments Office of the Australian Financial Security Authority’s website where you can register your loan agreement online.

What If I Have Trouble Placing My PPSA Registration?

As an existing client, we can review your documentation and assist with your PPSA Registrations.

How Can I Manage a Secured Loan Agreement?

Part of our Secured Loan Agreement Package is our Loan Management Dashboard which gives you complete access to your loan agreement on an ongoing basis.

What Interest Rate Can Be Charged In A Secured Loan Agreement?

There is no set rate associated with our Secured Loan Agreements and the interest rate can be set at a rate agreeable by both parties.

How Long Can A Secured Loan Agreement Last?

The loan period can be negotiated between the lender and the borrower but is generally set for a defined period of less than 7 years.

Can I Nominate the Secured Loan Agreement Repayment Amount?

Yes, the loan repayment amount varies depending on the interest rate, loan period and duration of the loan.

Can I include a Balloon Payment in the Secured Loan Agreement?

Yes, an “end of loan” balloon payment can be inbuilt into your loan agreement which can be used to lower the monthly repayment.

Can I Extend the Loan Period of the Secured Loan Agreement?

Yes, the loan can be renegotiated in the Loan Management Dashboard.

Can I Forgive or Cancel My Secured Loan Agreement?

Yes, the loan can be cancelled or forgiven at any stage throughout the loan term through the Loan Management Dashboard.

Can I Arrange for Automatic Repayments of my Secured Loan Agreement?

Yes, when setting up the initial loan the borrower's bank details can be included, and an automatic direct debit set up.

Can I be Automatically Notified of a Secured Loan Agreement Repayment Default?

Yes, automatic payment default notifications are a stand feature of our Loan Management Dashboard.

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Any Questions?

You are welcome to email us any questions - or call to speak to a consultant.


With over 35 years’ experience Collection Consultancy Australia prides itself in offering Products and Services designed to Protect Business Assets and Cashflow. Quite often the process can start from simply making business owners aware that there is option available, through to business specific solutions and education. We are here to let business owners know that there can be a better way to secure their financial future.

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East Brisbane QLD 4169.

Phone: 1300 565 988.


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