Compare our best secured business loans

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Secured business loans let you use your company’s assets to get deals on loans

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Check interest rates, terms and repayments at a glance from leading business loan providers
Funding XchangeBarclaysNest Business LoansNationwide FinanceRise FundingFunding OptionsFunding XchangeBarclaysNest Business LoansNationwide FinanceRise FundingFunding Options
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Last updated
January 24th, 2024

Secured business loans deals

6 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
Start Ups and Established Businesses Welcome!

Nationwide Finance Business Loan

Loan amount
£6,000 to £10,000,000
Loan term
12 months to 72 months
Nationwide Finance is a Direct Funder. They help over 50,000 businesses each year get finance. Same day decision and funds in 24 hours. Rated Excellent 5* on Trustpilot and Google. No.1 direct funder for new starts and established businesses.
Think carefully before securing debts against your business assets. Your assets may be repossessed if you do not keep up repayments on any debt secured on it.
Instant offers and quotes available across a range of products

Funding Options by Tide Business Loans

Loan amount
£100,000+
Loan term
1 month to 120 months
Think carefully before securing debts against your business assets. Your assets may be repossessed if you do not keep up repayments on any debt secured on it.
Access 120+ lenders, offering the broadest range of finance products available via a single application in minutes. Rated Excellent on Trustpilot. A team of Business Finance Specialists is on hand to help. Funding Options, part of Tide, is a credit broker, not a lender.
Indicative offers from over 70 lenders

Funding Xchange Business Loan

Loan amount
£1,000 to £500,000
Loan term
1 month to 120 months
Funding Xchange is a credit broker, not a lender. Funding Xchange puts you in control of your business funding giving you access to indicative funding offers within 3 minutes.
Think carefully before securing debts against your business assets. Your assets may be repossessed if you do not keep up repayments on any debt secured on it.
Minimum annual turnover of £100,000, trading history of 18 months and Companies House registration are required.
Flexible terms available

Barclays Business Loan

Loan amount
£1,000 to £5,000,000
Loan term
12 months to 240 months
Subject to application, financial circumstances and borrowing history. Terms and conditions apply. Eligibility criteria applies. Maximum loan amount based on application. No arrangement fees on loans up to £25k. Other terms may be available.
Think carefully before securing debts against your business assets. Your assets may be repossessed if you do not keep up repayments on any debt secured on it.
Instant Quote & Dedicated Account Manager

Rise Funding Business Loan

Loan amount
£10,000 to £5,000,000
Loan term
1 month to 72 months
Rated ‘Excellent’ on Trustpilot. Appling via Rise Funding does not affect your credit score. Tailored service & options based on your needs and circumstances. Minimum turnover £200,000 with 1 year trading.
Think carefully before securing debts against your business assets. Your assets may be repossessed if you do not keep up repayments on any debt secured on it.
Minimum turnover £200,000 - 12 months registered trading

Nest Business Loan

Loan amount
£10,000 to £5,000,000
Loan term
1 month to 120 months
Nest's free service matches you with over 200 lenders so you can easily compare the options to find the best rates currently available.
Think carefully before securing debts against your business assets. Your assets may be repossessed if you do not keep up repayments on any debt secured on it.
Minimum turnover is £200,000 with 1 year trading. Their service is rated 5 stars 'Excellent' on Trustpilot and 5 stars on Google.

Is my business eligible for a secured business loan?

Your business will have to meet certain lending criteria to qualify for a secured commercial loan. Providers may look at:

Before applying, check your business meets all the provider’s criteria to avoid having your application refused.

What is a secured business loan?

A secured business loan uses assets belonging to your businesses, such as residential or commercial property, as collateral to borrow money.

It's a way to access finance to fund business projects, help with everyday business expenses or cashflow over the year.

They work in a similar way to other loans. You borrow the sum your business needs and pay it back over a specific period at a set interest rate. You can even set up a business line of credit, taking out smaller amounts as required.

If you fail to pay the loan, however, the lender can take possession of the asset you put up as collateral instead.

UK businesses that used finance in 2022[1]
36%

How to find the right secured business loan for you

There are a few things you need to think about before applying to ensure you get the best secured business loan for your needs

Work out how much you need to borrow

The first step is to know what you actually need. Spend some time on this, as borrowing too much or too little could leave you paying interest for something that doesn't solve your needs.

What assets you have to secure against

Once you know what you need, have a think about what you can use as collateral. Remember, if you can't meet the repayments the lenders could take possession of it.

How long you want to pay the loan back over

Choosing a longer term loan can mean you pay back less each month, but that the debt will hang over you for far longer dragging on your profits. So aim to pay back in the shortest time you comfortably can.

What assets can you use for a secured business loan?

Almost anything can be used as collateral for a business loan as long as it has value that can be assessed.

But - being a business loan - you can use non-physical assets as well as buildings, tools and machinery.

That means everything from your future orders, unpaid invoices and unsold stock can also be put up as collateral.

Percentage of business loans that are cashflow related[1]
69%

Here are some of the main assets lenders accept:

  • Property/Land - Much like a mortgage on a home, you can put up any property or land owned by your business as collateral for a loan.

  • Inventory financing - The computers, machines and materials you use to conduct your business can be used to secure finance - even furniture, appliances and food products count. Commercial vehicles are one of the more common assets used here.

  • Invoice finance - If you have a string of as-yet unpaid invoices outstanding, but need cash now to keep things ticking over, you can use them as collateral to borrow money.

How long does it takes to get a secured business loan?

A secured loan takes a little longer than a credit card or unsecured loan - because the lender needs to check what you're offering as collateral as well as your application.

That means to apply you'll go through a series of steps - the most common will include:

  • Prepare - Get hold of the necessary documents - these will be things like accounts, tax returns, a business plan and any financial documents about the assets you plan to secure against.

  • Research - Take a look at different lenders, loan terms and conditions and interest rates to find the best fit for your needs.

  • Apply - Decide which provider offers the best deal for you and fill in the application.

  • First check - The lender decides if it wants to go forward with the deal and what loan amount and interest can be offered.

  • Evaluation - The lender takes a look at the collateral offered to check it covers the loan amount.

  • Decision - Once checks are complete, the lender makes a call - deciding to approve or reject the application.

  • Outcome - If you loan is approved, you are sent forms to sign and provide the collateral. After that's completed the lender transfers the cash to you.

Pros and cons

Pros

You may be able to borrow more, but this will depend on the value of your asset.
Longer loan terms are available, which could mean lower monthly repayments. This can help your business' cashflow.
Sometimes cheaper than unsecured loans – but not always. This is because there is less risk to the lender as they can claim money through the sale of assets instead.

Cons

You need a suitable asset to apply and this can include property, vehicles or machinery. Some businesses might not have access to these assets, making secured loans hard to apply for.
It puts your business assets at risk as if you can't repay the loan the lender can sell your asset.
It can take longer to get a loan as you'll need the relevant paperwork for your chosen asset. The lender will then need to make sure they are satisfied before agreeing to the loan.

Example costs of a secured business loan

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

Secured business loans can be a strategic financial tool for businesses. By leveraging assets as collateral, businesses can gain access to larger loan amounts and more favourable interest rates, while demonstrating a commitment to responsible financial management.

Alternatives to secured business loans

Unsecured business loans

Unsecured business finance - whether it's a business credit card, overdraft or traditional business loan - doesn't put your assets at risk if things go wrong.

Against that, they might come with higher interest rates, be available for less time or offer less cash overall.

But it's always worth checking them out alongside secured options.

Business grants

Depending on what you need the money for, you might be in line for a development or other grant.

There is funding available for new, environmentally friendly, equipment; research and development; regional growth and a lot more.

You can see what's available from the government by region here or check out your local council's website.

Angel investments

Business angels are people who have already made money and are now looking to support the next generation of entrepreneurs.

They'll often ask for a stake in your business - say 10% to 25% - but can often provide advice and contacts as well as cash.

The biggest problem is finding one, although the Angel Investment Network could be a good place to start.

Venture capital

As well as business angels, there are companies that invest in up-and-coming businesses in return for a stake in them too .

This is a more formalised process, the companies are looking to profit themselves too, but the idea is the same.

You give up a minority stake in your business, they hand over some funding. Tracking one down is, again, a potential issue - although FindVC and the British Private Equity & Venture Capital Association are reasonable places to start.

Private equity

Private equity works a lot like venture capital - except the people providing cash in exchange for a stake in your business are a private fund rather than a public one.

This could be a group of people looking after the personal fortune of a family or trust fund for example. It means there might be fewer restrictions on who they offer money to, as it will be in line with a specific person's goals rather than a straight profit motive.

The British Private Equity & Venture Capital Association is a good place to look for investors.

Crowdfunding

Rather than convince a single person or firm to part with a lot of cash, crowdfunding offers the chance to get a lot of people to part for a little.

You can offer rewards in exchange for investments - from stickers to products or more - but might not get anything if you don't hit your funding target (dpesinding on the platform you choose).

For new businesses, Seedrs is a decent option, while indiegogo and Kickstarter are there for people looking to expand.

Alternatives to secured business loans

Unsecured business loans

Unsecured business finance - whether it's a business credit card, overdraft or traditional business loan - doesn't put your assets at risk if things go wrong.

Against that, they might come with higher interest rates, be available for less time or offer less cash overall.

But it's always worth checking them out alongside secured options.

Business grants

Depending on what you need the money for, you might be in line for a development or other grant.

There is funding available for new, environmentally friendly, equipment; research and development; regional growth and a lot more.

You can see what's available from the government by region here or check out your local council's website.

Angel investments

Business angels are people who have already made money and are now looking to support the next generation of entrepreneurs.

They'll often ask for a stake in your business - say 10% to 25% - but can often provide advice and contacts as well as cash.

The biggest problem is finding one, although the Angel Investment Network could be a good place to start.

Venture capital

As well as business angels, there are companies that invest in up-and-coming businesses in return for a stake in them too .

This is a more formalised process, the companies are looking to profit themselves too, but the idea is the same.

You give up a minority stake in your business, they hand over some funding. Tracking one down is, again, a potential issue - although FindVC and the British Private Equity & Venture Capital Association are reasonable places to start.

Private equity

Private equity works a lot like venture capital - except the people providing cash in exchange for a stake in your business are a private fund rather than a public one.

This could be a group of people looking after the personal fortune of a family or trust fund for example. It means there might be fewer restrictions on who they offer money to, as it will be in line with a specific person's goals rather than a straight profit motive.

The British Private Equity & Venture Capital Association is a good place to look for investors.

Crowdfunding

Rather than convince a single person or firm to part with a lot of cash, crowdfunding offers the chance to get a lot of people to part for a little.

You can offer rewards in exchange for investments - from stickers to products or more - but might not get anything if you don't hit your funding target (dpesinding on the platform you choose).

For new businesses, Seedrs is a decent option, while indiegogo and Kickstarter are there for people looking to expand.

FAQs

Do I have to give a personal guarantee?

This depends on the lender. Some ask directors to give a personal guarantee to support the loan application.

What does representative APR mean?

It is the interest rate lenders must give to at least 51% of businesses who apply for these loans. The rate you’re offered may be different.

Does a business loan affect my personal credit score?

This depends on the sort of business you have and the sort of loan you take out.

If you are a sole trader, then a business loan can affect your personal credit score.

If your business is set up as a limited company, then business loans should not spill over into your personal credit score.

However, if you personally guarantee a business loan - that could affect your private finances.

Can you secure a business loan on personal assets?

There's nothing stopping you taking out a standard secured loan on your personal assets then using the money to fund your business.

However, in that case it will be your personal assets that are at risk if you don't meet the payments and your personal credit score that is impacted.

How much could my business borrow?

It depends on your business assets and finances. The lenders in this comparison offer loans up to £10,000,000.

About our loans comparison

Who do we include in this comparison?

We include loans and finance deals available directly from lenders and through brokers on our panel. They are all regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

How do we make money from our comparison?

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra, and the deal you get is not affected.

Learn more about business loans

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About the author

Lucinda O'Brien
Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.

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References

1. Money.co.uk UK business statistics and facts 2023 - growth and borrowing across various sectors