What is a secured business loan?

Secured Business Loans

Secured business loans are suitable for businesses that own assets like commercial property, vehicles and machinery, or companies that don’t offer personal guarantees.

It’s a loan secured by assets – valuable items owned by the business. This means that if your business can’t repay, the lender has the right to sell the asset, in order to get their money back.

There is a wide range of lenders offering secured business loans, and the amount you can borrow is based on the value of the asset(s) you have available.

Benefits of a secured business loan

Cost

Secured loans are usually cheaper than unsecured, because they are less risky for the lender.

Loan amount

You can generally borrow more with a secured loan than you can with an unsecured loan, although this will very much depend on the value of the assets securing the loan.

Security

Because the loan is secured with assets, there is usually no requirement for personal guarantees.

Good for: Any business with assets looking to borrow a significant amount without the requirement for personal guarantees.