Secured and Unsecured Business Loans
What is an Secured Business Loan?
A secured business loan is generally secured against a high-value asset such as a commercial property, a residential, investment property/properties . Other forms of personal or business collateral such as equipment, machinery, vehicles and other inventory can be used. A secured business loan is similar to applying for a mortgage and can involve a valuation process. We also have serval options for secured lending, loan sizes start from as little as £25,000 and up the £10 million +
Businesses operating in asset-heavy industries with a demonstrable trading history might be more inclined to get a secured business loan. Sometimes this type of loan is referred to as asset backed lending. Secured lending lending requires a business owner to provide assets such as property, plant, machinery as security. With investments the business offers, the risk to the lender is significantly reduced, which means lower interest rates and better repayment terms. Borrowers, as a result, are in a better position to repay the loan over the long term. Business owners who decide to go for a secured loan will usually not need to provide a personal guarantees.
How do Secured Loans work:
Secured loans for businesses work in a similar way to personal loans, such as mortgages. Borrowers will be charged a pre-agreed amount of interest by the lender and will then be required to repay it – typically on a monthly basis for the term or life of the loan until the debt is repaid. The interest rate on a secured loan tends to be lower than for a personal or unsecured loan, which is considered to be riskier. It is also important to note that the advertised rate isn’t necessarily the one you’ll receive, as the rate you’re offered may depend on how much you want to borrow, in addition to how long for, and the value of the collateral you put forward.
Benefits of a Secured Business Loan
More flexibility for businesses
Less stringent credit scores
Ideal for short-term financing
Fixed interest rates
Early repayment is possible and no early repayment charges
Often cheaper than unsecured loans
Disadvantages of a Secured Business Loan:
It requires acceptable assets to secure the facility
If you default on the loan you will also loose the asset
Your business needs to be well established
It can take longer to get an approval and sometimes the customer may need to pay for a valuation.
What is an Unsecured Business Loan?
An unsecured business loan is a funding that does not require the borrower to offer any security in terms of business assets or property related security. Because the loan is ‘unsecured’, businesses aren’t at risk of losing valuable business equipment, property or land when they choose this funding route.
Unsecured business loans offer a straightforward funding solution for UK businesses. You could borrow up to £500,000 without having to secure the loan against important company assets. We can offer unsecured loans from £5,000 up to £500,000 with terms from as little as one months up to 84-months.
What are the Advantages of Unsecured Business Loans?
There are several benefits to choosing unsecured business finance. If you need a quick injection of cash for your business without offering the security of an asset, an unsecured business loan could offer the fast, flexible and easy funding solution you’ve been looking for. The advantages of an unsecured business loans include:
Borrow from £1,000 up to £500,000 +
Does not require any asset or property as security
Flexible repayment terms from 1 month to 5 years +
Paperwork is very minimal
Funds can be released quickly after approval is granted
Short to medium term lending solutions
Keep your companies property and assets safe
Unsecured business loans are a great way for UK based Businesses to gain funding very quickly and with very little paperwork.
We can get funding for any size business and also established businesses and as well as new and fairly new businesses with great significant benefits.
Please note any application we submit on your half is subject to underwriting by the lenders. With unsecured business funding personal guarantee may also be required by the lender, the reason for this is because it could enable you to secure higher levels of funding. If your situation changes and your business is unable to repay the loan, the personal guarantor may be required to pay back the remaining balance under the agreed terms. If you do not meet these criteria, we can still help you access the finance you need. We have a wide range of unsecured funding and we have a large panel of lenders we can approach to ensure we get the right funding for you and your business.
Unsecured Business Loans Options:
Loans for Businesses
Unsecured Business Loans
Unsecured Business Funding
Unsecured Business Finance
Unsecured Line of Credit
Non Collateral Loans
Short Term Finance
Unsecured Business Loans for New Businesses
Unsecured Business Loans Bad Credit
Unsecured Business Line of Credit