What is a general security agreement?
A general security agreement gives a lender security over the assets of your business, usually all of them, rather than over one named item. It is registered on the Personal Property Securities Register and it sits behind a great many commercial facilities. The reach is wider than most borrowers expect. Stock, plant, debtors, cash at bank and goodwill can all be captured. A GSA does not by itself mortgage your home, though a personal guarantee usually sits alongside it and that can reach personal assets.
How far a GSA reaches
The standard wording covers present and after acquired property, which means assets the business buys later fall under it automatically. That includes equipment you might want to finance separately down the track, which is why a second lender will often ask the first for a deed of priority before proceeding. A GSA can also make selling a major asset awkward, since you generally need the lender’s consent to release it. None of that is unusual. It is just worth knowing before you assume an asset is free.
What to check before signing
Read what the agreement actually covers and whether it is limited to the facility in front of you or drafted to secure all present and future obligations to that lender. Check the release terms so you know what happens once the debt is repaid. Ask whether a director guarantee is being taken as well, because the two usually travel together. An unlimited guarantee is where the exposure stops being about business assets, since a judgment against you personally can reach what you own outside the business. Get your own lawyer across it.
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Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.