For Businesses
Technology
Financing opportunities with property or asset as collateral
Estimated time to read page: 2min 50s | Written - January 2025. Reviewed quarterly.
"Secured loans unlock larger amounts of funding by using a property (and in some cases other) assets as collateral. This reduces risk for lenders and allows borrowers to benefit from lower interest rates, making it a cost-effective way to finance growth or other substantial investments." - Jamie Davies, Head of Lending
A secured loan is a funding solution which will be secured against an asset (typically property).
This type of finance reduces the lender’s risk and often allows for higher loan amounts or lower interest rates.
Leverage your assets to secure the funding you need – explore our tailored Secured Loan solutions
All industries can apply for a secured business loans.
The funds can be used for any business use, including but not limited to, business expansion, equipment, consolidating debt or working capital. This product can work in conjunction with Commercial Mortgages and Bridging Loans.
A business may opt for a secured loan because they want to acquire larger finance for significant investments or expansions, secure lower interest rates, leverage valuable assets as collateral, or overcome a less favourable credit history.
It is possible for a business to use a personal asset as collateral. This is often done when the business is relatively new. However, it's important to note that this approach carries personal risk.
The specific eligibility criteria will depend on each lender, the rule of thumb usually involve:
Sufficient equity in the asset being secured
Most lenders will only finance on unencumbered assets for this type of loan
The business will have to show a business plan or repayments projection
Secured loans typically have lower interest rates due to the reduced risk for lenders. However, they often involve additional costs such as loan arrangement fees, valuation fees to assess the collateral, and potentially early repayment fees if you repay the loan before the agreed-upon term.
By joining years of expertise with our in-house intelligent lending technology, we are able to quickly match your business to the best product and the right lender for your circumstances, even if you have struggled in the past, in a simple and straightforward way.
On top of that, we provide advice and support through the entire process. Arranging a finance facility can take time. We assist you in cutting through the unnecessary and focusing only on what needs to be done.
We make it easier for you to raise commercial finance for your project or business. As we're not tied to specific commercial finance lenders, our concern is what's best for you.
Assets such as property, machinery, vehicles, or inventory can be used, depending on the lender's criteria. Typically this type of finance is backed by property.
Loan amounts depend on the value of the collateral and your financial profile, often ranging from tens of thousands to millions.
The lender may repossess the pledged asset to recover the loan amount. Should you have more than one property, it is preferable to utilise a property you don't live in.
Yes, if they have eligible assets and a solid repayment plan.
It typically takes 1-4 weeks, depending on the asset valuation and lender approval process.
