No home, no loan: Not owning property hurts young business owners

By Niko Iliakis · · 2 min read
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The banking Royal Commission and resulting credit squeeze has made property even harder to come by for young Australians. And according to a new report from MYOB Business Monitor, this has worsened the situation for young business owners trying to secure business financing.

The report found that nearly half of Gen Y small business owners had applied for financing last year - much more than their Gen X and Boomer counterparts - and more than a third had their applications declined.

Lack of collateral coming back to bite Gen Y businesses

This is a common problem among younger small business owners. Many apply for a loan in a bid to boost profits and productivity, only to be turned down because they don’t have the necessary assets to put up as security.

But if home ownership among younger generations of Australians is in decline, and property is often a requisite for obtaining business financing, what does this mean for the small business community?

According to MYOB CEO, Tim Reed, it should sound warning bells.

“This isn’t something you can pin on smashed avo. Australia’s youngest small business owners struggle to get access to finance because they’re less likely to own their own home,” he said.

“Many of us have believed tying business loans to home ownership has been a problem with the lending system that has existed for years, but for the first time we’re now seeing the generational impact.”

A new breed of lenders offers a solution

The right business loan can open the door to extra staff, renovations, and investment in new equipment, not to mention make sure your business has enough capital during periods of low cash flow.

“If cash flow causes problems, the wheels can fall off very quickly in other areas, so making sure businesses can get paid on time should continue to be an absolute priority for all,” said Mr Reed.

Nowadays, many Australians are turning to online business lenders to get the funding they need. This new breed of lenders often let business owners borrow without having to put up large assets like property as collateral.

Streamlined application processes also mean business owners can receive funds within 24 hours, allowing them to take advantage of opportunities to grow their business sooner rather than later.

For a look at the kinds of loans offered by online lenders, be sure to head to our unsecured business loans comparison page, or check out some of the options below.

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Last updated 9 May 2025Important disclosures

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  • About Great Southern Bank
    Business+ Unsecured Loan

    Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with Business+ online or the Business+ app. Get your money fast and efficiently. $20k minimum loan amount.

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    Rates range from 11.95% p.a. to 22.95% p.a.
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  • About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

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    On Application
    3%, starting at $399
    from 3 hours
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  • About ScotPac
    Boost Business Loan

    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

    Interest Rate
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    From 24 hours
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