Unsecured Business Loans vs.  Secured Business Loans:  Which one is better?

Need significant business funding to fund a new project or to fulfil a vital business goal?  Choose between unsecured and secured financing. Wait! Do you know the difference?

Secured loans for businesses belong to long-term financing, which requires a business asset to be pledged as loan collateral. Borrow funds for a longer duration, too.

Unsecured business loans bring the following BENEFITS for your company:

* Borrow up to £250,000 for a maximum of 5 years * You can save a lot of time by not arranging any asset to secure the loan

* Use the borrowed sum for any of your commercial purpose with no restriction * Get the benefit of competitive interest rates and flexible repayment terms

* Your loan request gets a quick response as the lender does not need to verify the collateral.

Secured business loans also bring a lot of BENEFITS for every industry in the UK

* Get the maximum amount of up to £500,000 for 10-15 years * Your asset almost guarantees 100% loan acceptance for your business

* Lower interest rates? Yes, that is for sure with these loans * Longer term ensures fixed instalments and better to maintain regular cash flow

* You qualify for tax deductions on the interest rates on other loans like commercial mortgages

Ignoring the RISKS involved with unsecured business loans can be costly.  Here are a few: * Higher interest rates may add extra burden on your business finance

* Lower amount is allowed only and may not suit the larger financial purpose * You need to arrange a personal guarantee as collateral is not there

Secured business loans are not untouched by any RISKS. In fact, these also involve many disadvantages, such as: * Loan process will take time as lender has to verify the pledged asset

*  You will lose your business asset once you default on the loan * During financial emergencies, these loans are not a suitable option.

Looking for a trustworthy UK broker to get the effective deals on secured business loans or unsecured loans for business? Thebusinessfunds is no doubt the right place for you