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A secured business loan enables you to access funding which is secured against one or more of your business assets. This reduces the risks for the lenders and increases your chances of being approved. And with the right help, you’ll be able to access lower interest rates, longer terms and larger loan amounts than with an unsecured loan.
At UK Business Finance, we can help you find secured loans that are the right fit for your business. Just tell us what you need and we’ll search the whole market to bring you the best quotes. There are no fees for our service, so you can benefit from our market insight without any additional charge.
A secured business loan is a loan that uses one or more of your assets as security against the money you borrow. If your business cannot repay the loan, the lender can claim ownership of the asset and sell it to recover the loan amount. This reduces the risk for the lenders, which usually allows you to borrow more and at lower rates than with an unsecured loan. The lower risks also increase your likelihood of being approved.
You can use all sorts of business assets as security, including physical assets such as property, equipment and machinery and even intangible assets like trademarks and intellectual property. Lenders may also accept your personal assets as security. You can then access loan amounts ranging from £5,000 to £500,000 or more.
If you want capital to grow your business and you have assets to use as collateral, a secured business loan can be an effective way to raise the funding you need.
Here are some of the benefits:
There are also a few things to think about. Secured loans can take several weeks to arrange as the lender will need to value your assets, so they’re not as quick as unsecured loans. You may also have to pay money upfront to cover valuation fees, and legal fees may apply if the lender places a legal charge on your property. A key business asset could also be at risk if you fail to keep up with the repayments.
If your business owns high-value assets or you’re willing to put up personal assets as security, you’re likely to be eligible for a secured business loan.
The eligibility criteria differs from lender to lender but they will usually expect to see:
The amount you can borrow will depend on the value of the asset(s) you put up as security. The lender will value your assets and let you borrow up to 100% of that amount.
Use UK Business Finance to find the funding you need. Once you’ve told us your funding objectives and requirements, we’ll search more than 50 UK lenders to bring you the best quotes. There’s nothing to pay for our service and we even complete loan applications on your behalf.
Request a quote online or get in touch via phone or email to discuss your funding requirements with our team.
We work across a wide range of sectors throughout the UK, providing specialist advice to each sector.
What are the finance options for a growing or expanding business?
With such a wide range of finance options available for growing and expanding businesses, it’s difficult to know which one is the most suitable. This stage of business is crucial, however, and it’s important to make the right funding choices.
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Business financing and funding options have expanded greatly in recent years and you’re no longer restricted to loans from the major banks. The alternative finance market offers funding solutions that you may not have considered before, and that are typically quick to obtain.
How to get a business loan
The right type of loan can kick-start your business or provide the financial support that enables growth. Not all business loans are made equal, however, and it’s important to know your options and how to source the best deals.
What is a debenture?
A debenture is a legal document used to define the terms of a secured business loan for a limited company or limited liability partnership. It includes the full amount of the loan, the interest rate and term, and the specifics of the lender’s rights to the asset mentioned.