Business loans, secured against an asset like property, are a helpful business funding source. They can free up their equity, which has been stuck in assets. They can use the funds to reinvest or utilise them for other business activities.
Get and compare an elite list of lenders providing bespoke offers on commercially secured business loans in the UK, including the lowest interest rates. Just put your company’s property assets as loan security and get a considerable amount to achieve your goal.
Why does your company need a secured business loan? Here are the possible reasons:
In a nutshell, a secured commercial loan is what your business wants to increase more capital during the extreme need. It benefits small and medium-scale enterprises as they keep valuable assets to get loans and fill the funding gaps while buying fresh equipment or seeking financial growth.
At Thebusinessfunds, you have the best chance of finding and comparing secured business loan rates. Our lenders are flexible enough to approve your loan application on personal guarantees or personally owned assets. As trustworthy business loan brokers, our mission is to offer the trustworthy platform to evaluable various deals on secured business loans for UK’s small and medium enterprises.
Start comparing various deals by pressing here or contacting us today at 0208-123-7489.
A secured business loan facilitates companies to secure funds by placing collateral against the borrowed sum. The collateral will be in the shape of an asset the company owns. Sometimes, it is also referred to as asset-backed funding or secured commercial loan.
The lender chooses which type of asset it prefers, which means tangible or intangible. However, tangible assets are more in trend. Thebusinessfunds has a vast network of lending institutions accepting primarily real estate as loan collateral. One thing is for sure: you can use loans for almost any business purpose.
Most businesses apply for secured corporate loans to back expenses, especially where unsecured business loans are not practical. Lenders offer these loans for the fixed period and interest rate depending upon the types of assets like commercial property, machinery, vehicles or any other equipment.
Secured loans for businesses are less risky for both lenders and companies. If the borrowers have failed to repay the loan, the lender recovers that loss by repossessing the placed asset. Therefore, the terms are more suitable for businesses, particularly the lower interest rates.
Businesses of any shapes, sizes and strengths can go for these loans in different situations. These include:
Business loans secured against property involve less risk for the loan providers. They are at a convenient place due to the security placed by the company. Consequently, the terms and conditions are softer and more suitable for businesses.
There are many more benefits as such which these loans bring. These include:
Larger Loan Amounts
Secured loans bring more considerable loan amounts than unsecured ones. The primary reason is the placed collateral and, consequently, the lower risk lenders have. They do not hesitate in assigning a larger amount as they have the source to compensate the pending sum from the borrowers’ end.
Lower Interest Rates
In the UK loan marketplace, options are available with high and low-interest rates. A secured loan for business in the UK has comparatively lower interest rates as they are protected with an asset. The lender can recover the losses in a default scenario by owing or selling the placed asset.
Easier to compare and obtain
Lenders offering unsecured loans for businesses often lack trustworthiness. They used to advertise their products on high, but the reality is different. On the other hand, secured loans are easier to compare and get. Thebusinessfunds will do half the work by finding the most relevant deals available.
Longer loan duration
As the loans have the support of the company’s assets, the duration will go longer than unsecured loans. Companies find the comfort zone with this, as they have to pay lower monthly payments till the life of the loan. Proper repayments will contribute in boosting their credit scores as well.
In securing business loans, you must use your company’s owned assets to pledge against the loan amount. You have to repay the borrowed sum; otherwise, be ready to lose your asset. The significance of this asset-based financing is based on the less risk involvement for the lenders.
Before finalising a loan deal, you must be clear about what assets are acceptable for the loan security. However, it also depends upon the type of business that you are running. As your financial companion, we help you by explaining some assets you can use as loan collateral.
Property
The most widely used asset is the property. It is a high-value asset that most of the lenders prefer. A few of the lenders in our panel sometimes accept applications on business loans secured by residential property owned by the company owner. Some also agree that commercial vehicles or business equipment are to be taken as part of the property.
Invoices
Cashflow is the major problem that most small businesses face and they want a loan to rectify it. The gap in cash flow generally occurs when the customers do not pay invoices on time and you struggle for funds to manage other expenses. Fortunately, you can use those unclear invoices as collateral, as they indicate your business income. The loan providers are ready to accept the unpaid invoices as loan collateral under the process called invoice financing.
Business cash
This option can work when you want to apply for a loan from a lending institution where you have an account. This process is also called cash-secured loans and is applicable at banks. Under this process, the lender can close your account if you default between the loan terms. Many lenders prefer these types of collateral, as they can recover the lost amount by cash, not by selling a physical asset.
Inventory
Such collateral suits those businesses with several inventories or products with higher value. In this scenario, you use your inventory as the loan collateral. Later, if you are unable to repay the loan, you can use those inventories to prevent from going to default. We will find those for you if you want lenders dealing in inventory finance or ready to accept your inventories as loan collateral.
Many situations happen when secured business loans will be your best bet during the need for urgent funding. As these loans have the support of your company’s assets, the loan providers keep the right to repossess those in the case of a default or unable to repay the pending loan amount.
Thebusinessfunds, your business loan brokers, is here to ease the task of companies who want to obtain secured business loans simply and straightforwardly. We may take time to understand your needs. Once we go through them and analyse the value of your assets, we will compare deals offering fair interest rates and repayment schedules.
Lenders often do not go deep into your business credit score to decide your company’s eligibility. They are proficient enough to provide high-value and tailor-made loans secured against your company’s property assets.
While applying, you only need to provide a few details like:
Our lenders can decide within a few minutes, and we will ensure they send quotes free of fees.
If we do an overall review of the UK business loan marketplace, secured loans for businesses are comparatively easier to avail of than unsecured loans. The latter option is risky, especially for the lenders. They do not have collateral. Thus, losing money is always possible if a business does not repay.
Secured loans suit well to the eligibility of small and medium-scale businesses. Therefore, companies’ bank statements and invoices will be necessary, and the credit scores will be too. Lenders want to fund only those companies where there are fewer risks. Secured business loans fulfil their aspirations on this. The company borrows the amount which is secured against an asset to get the approval on such commercial property loans.
The lender analyses the value of your business asset and then finalises the loan amount and term. Further, the lender has the power to seize the business assets if the company defaults in between. More importantly, companies can gain maximum benefits from a secured loan. They can obtain much-needed cash based on their business assets and use it in other essential activities like buying equipment, research and development, managing unexpected costs, etc. Small cash flow issues can also be solved with these loans.
With collateral placed, the loan providers do not take too much interest in the company’s credit histories. They also give lesser importance to business records to decide your loan eligibility.
Suppose you need any suggestions, want to know more about the deals available on secured business loans, or want to know about other loan products. In that case, we are available 24/7 and ready to support your business endeavours.
As credible business loan brokers, we do not approach businesses, but they approach us. What will be the reason? It is because our guidance reflects our experience, expertise and trustworthiness. We have a large panel of lenders offering secured business loans on flexible and feasible terms.
Be ready with collateral: You should be prepared with an asset to pledge loan security. You need to permit the lender to seize your asset if you default in between the loan term.
Analyse the market for the best loan: You should shop to find the best deal. Use the business loan calculator to analyse different lenders' interest rates and repayment terms. Of course, we will guide you throughout the comparison.
Judge your actual needs: You have collateral and you often think about secured business loans. However, you do not need a large amount and may be taking unsecured business loans would be wise choice.
Not mandatory to accept lending terms: Suppose you have chosen a loan deal and submitted papers regarding your company's asset ownership and are looking for approval. The lender will share a loan quote with terms and conditions. You should evaluate the terms, and if they do not suit you, deny the loan deal straightway.
Still confused about the secured business loan or want to start the comparison? Contact us or start finding your loan deal by clicking here.
Availing of a business loan can significantly impact your credit score. It becomes more crucial when your company has a poor credit score. At Thebusinessfunds, we understand that each business has its financial capacities and circumstances. Therefore, we maintain a variety of secured business loan options and alternatives from the top lenders in the UK.
Our lenders understand that the company's financial circumstances are directly connected with the owner's financial capacity. Therefore, lenders may enquire about your personal credit score and need a personal guarantee to offer you the loan. However, if your credit score is good or excellent, our panel of lenders may not ask for a personal guarantee.
Chances of loan approval are bright for those with full property ownership. Still, lenders in our network can accept your loan application. They give only that amount to borrow with equal value according to the equity you own on that property. For instance, if you possess a property worth £800,000 but have only the equity of £400,000. You can get the loan amount based on that equity only.
Early repayment fees on secured loans depend upon the lender-to-lender. You can directly negotiate with your lender about the charges. However, you do not have to worry about it because we have lenders who charge minimal fees or sometimes do not charge if the maximum part of the loan has been repaid without a single miss. You should carefully read the terms and conditions, including every fee included.
Every loan option has some risks, too, and secured business loans are not the exception. The most significant risk involved with these loans is the asset you have to pledge. You cannot get the loan approval until and unless you keep an asset. If you do not have one, opting for unsecured business loans would be better. Furthermore, you may lose the rights from your company's assets if you miss the repayments or default on the loan.
