Secured business loans allow you to borrow against your company’s assets, giving your business the capital it needs to thrive.
Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
1
Prepare a business plan
Decide why you are comparing deals for business loans and why you want to borrow the money. Work out how much you need to borrow and how long you'd need to repay. Once you have decided on a secured business loan find the cheapest secured business loan deal by comparing a number of companies.
2
Compare your options
Have a look through the options to find the best secured business loan for your business needs. Terms and repayments can vary between providers so check any conditions attached to the loan then pick a deal that offers the cheapest secured business loan for your business.
3
Apply for the loan
You may be able to get a cheaper business loan by applying online and some lenders and brokers only ever operate digitally, so to make sure you find the best secured business loan deals comparing quotes on the internet is a must. Once you've decided on the provider you want, simply apply.
A secured business loan leverages business assets, such as residential or commercial property, to borrow money.
It's a way to access finance to fund business projects or to help with everyday business expenses.
Secured business loans work just like any other loan. You borrow the sum your business needs and pay it back over a specific period at a set interest rate.
There are several types of secured business loans, including:
asset-backed finance
secured business bank loans
peer-to-peer loans
The cost of a secured business loan varies depending on several factors:
What business assets you can use: work out what you plan to use as collateral, as well as its value
How much your business needs to borrow: try not to borrow more than you need. The amount you can borrow depends on both the collateral assets and your business finances
How long you’ll need to pay back the loan: secured company loans last from just a few months up to five or 10 years. You can set the period when you apply
Here’s an example of how much a secured business loan could cost and the repayments your business would need to make:
Amount borrowed: £100,000
Collateral: business machinery
Loan term: 10 years
Interest rate: 30% APR
Monthly repayments: £2,383.33
Total cost: £285,999.60
You may be able to borrow more
Longer loan terms are available
Sometimes cheaper – but not always
It puts your business assets at risk
It can take longer to get a loan
You need a suitable asset to apply
Compare as many secured loan from as many providers as you can to find the best deal for your business. Be sure to consider other options, too.
Other more specialist types of secured business lending, like asset finance, work slightly differently, and some lenders also offer unsecured business loans that don’t require your business assets as collateral.
Make sure you find the right fit for your business before applying.
Your business will have to meet certain lending criteria to qualify for a secured commercial loan. Providers may look at:
your business’s minimum annual turnover
your trading history
your type of business
Before applying, check your business meets all the provider’s criteria to avoid having your application refused.
Produce a shortlist of loans that meet your needs and for which your business qualifies, then look for the cheapest deal.
You can use our comparison above to check the latest secured business loan rates.
If you want to take your business to the next level but don’t have the funds to do so, you could consider getting a business loan.
Find out how to get a business loanWith the right type of borrowing you could pursue business opportunities that would otherwise pass you by, here's how.
Read more on borrowing for your businessIf you need funds to help your business grow or expand, a business loan could offer the solution you need. Here is how they work and how to get the right loan for your business.
More on how business loans workComparing business loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.
Our full guide to sacking the boss and starting out on your own - from finding a unique business idea, to getting the money to fund it all the way through to secrets and tips from people who've made it themselves.
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Last updated: 7 May 2022
