Secured loans icon

Secure a loan against assets that your business owns

We’ll help you find the right secured business loans

Think agent

Run a secured business loan comparison to find out how much you could borrow by using existing assets as security. Fund a range of business costs.

£
Secured loans icon

Secure a loan against assets that your business owns

We’ll help you find the right secured business loans

Run a secured business loan comparison to find out how much you could borrow by using existing assets as security. Fund a range of business costs.

£
Bionic

We’ll help you find the right secured business loans

Run a secured business loan comparison to find out how much you could borrow by using existing assets as security. Fund a range of business costs.

What are secured business loans?

Secured business loans are higher value loans that are secured by the borrower’s assets. These loans are suitable for businesses that own assets such as commercial property, vehicles, and machinery.

Typical uses for a secured business loan could include funding for the purchase of commercial property, office refurbishment, company expansion, or new machinery. Using existing assets as security reduces the risk to the lender, which could increase your eligibility for a loan. It could also mean lenders are willing to offer a higher loan amount or a lower rate of interest.

What assets can you use as security on a secured business loan?

The amount you can borrow could be dependent upon the value of the assets you’re putting up as security. You can use any number of business assets, including:

  • Commercial property
  • Vehicles
  • Land
  • Equipment
  • Fittings and fixtures

But bear in mind that if you miss repayments then your lender can seize your assets as part of any debt recovery action.

What are the benefits of secured business loans?

  • Lenders usually class secured loans a lower risk as the asset is an assurance of repayment. This means lenders will be more confident in lending to your business and may be more flexible with their terms. You may get more competitive interest rates and longer repayment terms than with an unsecured loan.
  • Businesses can typically borrow more with a secured business loan depending on the value of the asset it is being secured against. The more assets you put forward as security the more you may be eligible to borrow.

What are the limitations of secured business loans?

  • Due to the loan being secured against assets, failure of repayment the asset will be seized.
  • This form of loan can take longer to process than an unsecured loan as valuations need to take place against the asset as well as other legal checks.

An example of how a business might use asset finance

A private medical company is looking to expand. It currently offers a range of services, including physiotherapy, personal training, acupuncture, massages, and sports therapy. It also has an animal veterinary side of the business. The staff are all self-employed, highly trained and experienced.

As the business was growing, it needed to work from larger premises. After getting in touch with the team at Think Business Loans, it was agreed that a secured business loan would be the best option in these circumstances.

Once a suitable lender was found and had finished with their valuations, the client was accepted for a £250,000 loan. With this, they were able to buy a new building that was four times the size of the original one. They have since been able to hire more staff and create a better experience for customers.

What is the difference between a secured business loan and an unsecured business loan?

Although both can usually be used for any business purpose, there are a number of differences between secured business loans and unsecured business loans. The type of loan you can take out will depend upon the amount you need to borrow and your current circumstances. The information held in your business credit file will also affect the type of loan and the terms you’re offered.

Can you get a secured business loan without using assets as security?

If your business has no suitable assets to use as security, you might be able to secure a loan with a personal guarantee. In this instance, a company director will offer a personal asset – usually a property – as security on the loan. Although this is a legitimate way to secure business finance, it can be risky as you could lose your property if the business becomes insolvent.

Is a secured loan the right option for your business?

If you need money for expansion or new equipment, a secured business loan might be a good option as it gives you access to higher loan amounts. It could also be a useful option if your business has a low credit rating as putting up assets as security will reduce the risk to the lender and increase your chance of acceptance.

To find out if a secured loan is the right option for your business, give the team at Think Business Loans a call on 0203 880 9880. We’ll compare a range of solutions to help you find finance that fits your business.

Secured business loans

We’ll help you find the right secured business loans
What are secured business loans?
What assets can you use as security on a secured business loan?
What are the benefits of secured business loans?
What are the limitations of secured business loans?
An example of how a business might use asset finance
What is the difference between a secured business loan and an unsecured business loan?
Can you get a secured business loan without using assets as security?
Is a secured loan the right option for your business?

Compare Secured business loans with Think business loans

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How does Think Business Loans comparison work?

How Bionic Works

You tell us about your business

Every business is unique, so we first need some basic info on your business so we can find finance to fit your needs and circumstances. Our cutting-edge iFunds technology will match your business against the suitable loans and lenders.

How Bionic Works

We compare loans and lenders

We put your application to tender with our panel of lenders to find the most suitable solution. An account manager will then talk you through your options and you can track the progress of your application via our smartphone app.

How Bionic Works

We’ll manage your application

Once you’ve chosen the loan you want, we’ll handle all correspondence and information requests. Your account manager will be on hand to answer questions, give you regular updates and make sure you get your funds as soon as possible.

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Your comparison is free. If you take out a loan, we’ll be paid a commission by the lender that is included in the rates we quote.

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