What this funding is designed to do
A second mortgage is registered behind an existing first mortgage. It can allow a business owner to access additional equity while retaining the current first facility, subject to the first lender’s consent and the full assessment.
Second mortgages are commonly considered for working capital, urgent purchases, ATO debt, fit-outs and short funding gaps.
When this structure may fit
- Your business has a genuine, clearly explained use for the funds.
- There is sufficient available equity in acceptable Australian real estate.
- The need is time sensitive or falls outside a conventional bank policy.
- You have a credible exit strategy for repaying the short term facility.
- The costs and risks are understood before you proceed.
Why business owners come to Equity Tap
Banks are built for standard scenarios and longer processes. Equity Tap is built for direct specialist assessment. We listen once, look at the whole position and explain whether a workable structure exists. That matters when a settlement, creditor, opportunity or refinance cannot wait.
Equity Tap has lent its own money since 2022. Facilities range from $50,000 to $5 million, with terms from one to twelve months. Eligible transactions may settle in as little as 24 hours and may allow interest for up to six months to be prepaid as part of the facility.
What we need to understand
Start with the amount required, the business purpose, the deadline, the security property, any existing mortgage and the expected repayment event. Supporting information can include identification, rates notices, mortgage statements, contracts, trust documents and evidence supporting the exit.
“We fund people the banks cannot help, or can help, but not quickly enough.”
Equity Tap lending approachUnderstand the position behind the first lender
A second mortgage is registered after the existing first mortgage. The amount potentially available is based on the property value and combined secured debt, not just the equity shown on a bank statement. The first lender's terms, consent requirements and any priority arrangements also matter. See our LVR guide for a worked combined-debt example.
This can be useful when replacing a favourable first mortgage would be costly or slow. It does not remove the need for a credible exit. Ask how the proposed second loan will be repaid, whether a refinance or sale is already underway, and what extra cost a delayed exit would create.