Secured Loans for UK Businesses

Get £25,000 to £5,000,000 in secured business funding with fast decisions and flexible terms.

By leveraging your assets as collateral, you can unlock larger financing to grow your UK business with confidence. Funding Guru’s dedicated team works quickly – often securing approvals in days – while guiding you with clear, honest advice. You can apply online for secured business loans, making the process convenient and fast. With over £750M funded for UK businesses and 500+ owners helped to date, we know what it takes to secure the right deal for your business.

what our secured business loans offer you

What is a Secured Business Loan?

A secured business loan is a loan backed by one or more assets as collateral, such as property, equipment, vehicles or inventory. Lenders look for suitable assets to secure the loan and the suitability of these assets can affect both loan approval and the terms offered.

In other words, your business offers something of value to ‘secure’ the loan. This security reduces the lender’s risk, making approval more likely and often resulting in more favourable terms for you (like lower interest rates or higher borrowing limits). If you fail to repay, the lender can claim or sell the asset to recover their money. Because the loan is ‘asset-backed’, it’s typically easier to get approved and to borrow more than with an unsecured loan.

Secured loans are a common form of business finance for UK companies that have valuable assets and need significant capital.

How it Works

Secured business funding with Funding Guru is designed to be straightforward and quick. Here’s a step-by-step look at how the process typically works:

Apply or Talk to Us

Start by submitting a loan application online or by phone.

We’ll discuss your funding needs and what assets you can use as collateral. You can apply in minutes through our simple form, or speak directly with a funding advisor for guidance.

Assessment & Offer

Our team of experts reviews your application.

We’ll evaluate your business’s financials and the value of your proposed collateral. Don’t worry, we cut through the jargon and handle the heavy lifting. Because the loan is secured, we can often approve cases that traditional banks might turn down (even if your credit isn’t perfect). In many instances, we can give you an initial decision within 24 hours.

Provide Documentation

To proceed, you’ll need to provide some documents.

Commonly this includes proof of asset ownership (e.g. property deeds or asset invoices), business financial statements, and identification. We’ll clearly let you know exactly what’s required – no last-minute surprises or endless paperwork.

Formal Approval & Terms

We present you with the loan offer.

This will detail the amount, interest rate, term and any fees. We’ll explain all terms in plain English. Once you’re happy and accept the offer, we’ll finalise paperwork. In some cases, the Funding Guru may arrange an asset valuation (for property or high-value collateral) as part of due diligence.

Receive Your Funds

Upon approval and completion of legal checks, the funds are released.

You can often get the money in your account within days – sometimes in as little as 48 hours after approval. Now you can put the capital to work for your business immediately.

Repayment

You’ll repay the loan over the agreed term.

Repayments are typically monthly at a fixed or variable interest rate. We’ll help set up a schedule that works for your cash flow. It’s important to make regular repayments to fulfill your loan obligations and avoid the risk of asset loss. And if you ever want to repay early, just let us know – we pride ourselves on flexibility (no hidden penalties for early repayment, in many cases).

Throughout the process, Funding Guru acts as your trusted partner. We’re here to answer questions and ensure everything is transparent and stress-free.

Benefits of Secured Loans for Growing Businesses

Secured business loans offer several key advantages for borrowers who have assets. Here are some of the top benefits:

Higher Borrowing Amounts:
Because your loan is backed by collateral, lenders are comfortable offering larger loan sizes. You can often borrow far more with a secured loan than you could unsecured – sometimes even into the millions, depending on your asset value.
Lower Interest Rates:
With an asset reducing the lender’s risk, interest rates are typically lower than for unsecured loans. This can save your business a significant amount in interest costs over time.
Longer Repayment Terms:
Secured loans often come with longer repayment periods. For example, spreading the loan over 5–15 years (instead of just 1–3 years) means lower monthly payments. A longer term can ease pressure on your cash flow by reducing how much you pay each month, resulting in lower monthly repayments that make it easier to manage your business finances.
Easier Approval (Flexible Criteria):
Got a limited credit history or past credit issues? A secured loan could be more accessible. While your credit rating is still considered, lenders put less emphasis on perfect credit since they have collateral as a guarantee. That makes secured loans a viable option for newer businesses or those with imperfect credit who might otherwise struggle to get financing, especially if you can offer suitable collateral.
Flexible Use of Funds:
Just like any business loan, funds from a secured loan can typically be used for a wide range of business purposes – from purchasing equipment and vehicles to hiring staff, boosting working capital or refinancing debt. You’re not locked into using the money only for a specific thing, so long as it’s for the business.
Builds Business Credit:
Successfully repaying a secured loan can help build your business’s credit profile. Over time, this can improve your ability to borrow on even better terms. Making timely repayments on your secured loan can also help improve your credit rating and overall credit profile. And because approval is more likely, a secured loan might be your stepping stone to establish credit if you’re a younger company.

Eligibility & Requirements

Secured business funding is open to a broad range of companies and entrepreneurs. While exact criteria can vary by lender, here’s a checklist of common requirements to qualify for a secured loan:

UK-Based Business:
You should be a UK-registered business (Ltd, LLP, PLC) or a sole trader based in the UK. An active Company Registration Number (CRN) is usually needed for limited companies.
Trading History:
Many lenders prefer a minimum trading history (e.g. 6–12 months of operating) to show your business has cash flow. However, secured loans can be available to younger businesses too – even start-ups – if you have valuable assets or other income. Some lenders ask for at least a few months of revenue records (for example, 4–6 months of trading as a baseline).
Minimum Turnover:
There may be a minimum monthly or annual revenue requirement. This ensures you have the means to make repayments. For instance, one lender might require at least £5,000 monthly turnover, while another might want £10k+ depending on loan size. Generally, your income should comfortably cover the loan payments.
Collateral to Secure the Loan:
Since this is a secured loan, you must have one or more assets of value to offer. The collateral’s value should be sufficient to support the size of the loan you want (more on collateral types below). Lenders will typically want the estimated value of assets to be higher than the loan amount (to allow a safety buffer).
Personal Guarantee:
In many cases, a company director or business owner will also need to sign a personal guarantee for the loan, especially for limited companies. This means the company director may be required to leverage their personal assets or act as a guarantor, making them personally liable if the business can’t pay. It’s standard practice – even though the loan is secured by an asset, lenders like to see owners committed to repaying. (If you’re a sole trader or partnership, you’re already personally liable for debts, so a separate guarantee isn’t needed.)
Good Standing:
Your business (and directors) shouldn’t be in the middle of insolvency proceedings or serious legal disputes. Minor credit issues are usually OK (that’s a benefit of secured loans), but active CCJs or recent bankruptcies could be a hurdle unless the collateral and story are very strong.
Documentation:
Be ready to provide documents such as: proof of ID and address for owners, recent bank statements, financial accounts or tax returns, details of the asset (e.g. an appraisal or invoice), and any existing debt info. Exact docs will depend on the lender and loan size. Funding Guru will give you a clear list upfront so you know what to prepare – making the process as smooth as possible.

If you’re not sure whether you qualify, don’t be discouraged. Because we work with a network of lenders, we can often find a secured business funding solution even if one lender says no. Our advisors can talk through your situation and advise on eligibility.

Remember, securing a loan means you will have repayment obligations. It’s important to make regular payments as agreed to avoid risking your collateral.

What Can Be Used as Collateral?

One of the great features of secured loans is the flexibility in collateral. Lenders in the UK are often willing to accept a wide range of assets as security – far beyond just property. Here are some common types of collateral you can use for a secured business loan:

Property (Real Estate):
This is the most typical collateral. It can be commercial property (like offices, warehouses, retail units) or residential property you or the business owns. Using property usually lets you borrow larger amounts since real estate often has high value. Example: You secure the loan against your warehouse which is worth £500,000.
Equipment & Machinery:
Valuable machinery, manufacturing equipment, specialist tools or even company vehicles can be used as collateral. Lenders may require details or a valuation of the equipment. If your business has expensive assets on the balance sheet (like industrial ovens, construction machinery, fleets of vehicles), these can back a loan. Secured loans or asset finance can also be used to purchase assets for your business, allowing you to spread the cost over time while using the asset itself as collateral.
Inventory or Stock:
If you hold a lot of sellable inventory, some lenders will allow you to secure the loan against that stock. This is common in retail or manufacturing – for instance, securing a loan against £200k worth of product stock in your warehouse.
Accounts Receivable (Invoices):
Unpaid customer invoices can serve as collateral too. This is basically invoice finance – you’re borrowing against money owed to you. Lenders will advance cash based on your receivables (often around 70-85% of the invoice value) and get repaid when your customers pay their invoices.
Vehicles:
Company cars, vans, trucks, or other vehicles can be used as security, similar to equipment. There are even specific vehicle finance and refinancing options where you use vehicles you own outright to get a loan.
Financial Instruments:
In some cases, cash savings, stocks & bonds, or other financial assets could be pledged. This isn't common for business loans (more common in personal loans or high-net-worth lending), but it’s possible if you have significant financial assets.
Other Business Assets:
Almost anything of tangible value that your business owns could be considered – from intellectual property rights to big-ticket contracts – but the above categories are the most widely accepted. Lenders prefer assets that are easy to value and sell if needed, so keep that in mind.

We go into further detail on different types of collateral for business loans in our blog.

Collateral Tip: You can often use multiple assets to secure one loan. For example, you might pledge both a property and some equipment to achieve the loan amount you need. The combined value of the collateral will be considered.

Interest Rates & Example

Interest rates on secured business loans tend to be lower than on unsecured loans – primarily because the collateral reduces the lender’s risk. However, the exact rate you’ll be offered depends on several factors, including: the quality and value of your collateral, your business’s financial performance, loan term length, and overall market rates (Bank of England base rate, etc.).

Rates can be fixed or variable. Many business loans use fixed rates, giving you certainty of what your payments will be; others might track a base rate plus a margin. In particular, many term loans come with a fixed interest rate, providing stability and predictability for your business’s financial planning.

To give a rough sense: as of now, secured business loan annual interest rates for UK SMEs might range anywhere from around 6% up to 15%+. Lower rates (single-digit) are usually offered when the loan-to-value is low and the business has solid finances, whereas higher rates may apply to riskier profiles or second-charge loans. Always compare offers – Funding Guru will help you navigate rates from different lenders to ensure you get a competitive deal.

Example Repayment Illustration

Let’s say your business borrows £100,000 with a secured loan against property, at a fixed 8% annual interest rate over a 5-year term. How would that work out?

Loan Amount: £100,000
Interest Rate: 8% per annum (fixed)
Term: 5 years (60 months)

In this scenario, your approximate monthly repayment would be around £2,028. The loan is repaid through monthly instalments, making it easier for businesses to budget and plan their finances. Over 60 months, you’d repay a total of roughly £121,680, which includes about £21,680 in interest on top of repaying the £100k principal.

If the rate were lower, say 6% per year, the monthly payment would drop to about £1,933, and total repayment around £115,998 (about £15,998 in interest). As you can see, a few percentage points in interest rate make a big difference. This is why securing the lowest rate possible is valuable – and using collateral can help achieve that.

Note: These figures are illustrative. Actual offers will vary. There may also be arrangement fees or other costs to consider (we always disclose any fees upfront). Our loan calculator can help you model different scenarios – try adjusting the amount, rate, or term to see how your monthly payment and total cost change.

Secured vs Unsecured Business Loans

You might be wondering how a secured loan compares to an unsecured business loan. Secured commercial loans are a popular option for businesses seeking larger funding amounts, as they allow you to borrow more by using business assets or revenue streams as security.

Small business loans, on the other hand, can be tailored to the needs of different industries and business sizes, with options ranging from secured to unsecured loans depending on your eligibility and requirements. Here’s a quick side-by-side look at the differences:

Factor	Secured Business Loan	Unsecured Business Loan
Collateral Required	Yes – you must provide an asset as security (e.g. property, equipment)	No – approval is based on creditworthiness and trading history, without pledging assets
Typical Loan Amount	Higher – borrowing limit depends on collateral value (often can raise more funding)	Lower – usually capped based on income/credit (risk is higher for lender)
Interest Rates	Lower – because lender’s risk is reduced by collateral	Higher – lender charges more to compensate for lack of security
Repayment Terms	Longer terms often available (up to 5-25 years in some cases, especially for property-backed loans)	Shorter terms (often 1-5 years), since lenders want exposure limited without security
Approval Speed	Can be slightly slower (requires asset valuation and legal charges on collateral) – funding in days or weeks depending on complexity	Typically faster decisions (no collateral to evaluate) – funding in as quick as 24-48 hours in some cases
Credit Criteria	More flexible – collateral can offset weaker credit or limited trading history	Stricter – strong credit and financials needed since lender has no fallback asset
Risk if You Default	Asset can be seized by lender (you could lose the property or asset used as collateral)	No specific asset at risk (however, you’re still liable personally if you gave a personal guarantee, and your credit will be damaged by a default)

Both types of loans have their place. Unsecured loans are quicker and don’t put assets on the line, but they come in smaller amounts and higher costs. Secured loans unlock larger sums at lower rates, but you must be comfortable with the stakes of using collateral.

Many businesses start with unsecured facilities for smaller needs, and move to secured borrowing for larger investments or once they have assets to leverage. Small business loans, whether secured or unsecured, offer flexibility to suit a variety of business types and industries, with terms and conditions that can be customized to your specific situation.

Read our in-depth discussion of the key differences between unsecured and secured loans in our blog.

Types of Secured Loans

“Secured business loan” is a broad term. In practice, there are a few different types of secured lending that Funding Guru can help arrange, depending on what you’re financing and what you’re using as collateral:

Each of these has its nuances, but the common thread is collateral. We’ll help you determine which type of secured finance fits your needs best. Often it comes down to what you’re financing: buy property (commercial mortgage), buy equipment (asset finance), smooth cash flow (invoice finance or line of credit), short-term opportunity (bridging), etc. Many businesses use a mix of these over time.

Who It’s For

You might be asking, “Is a secured loan right for my business?” Here are some scenarios and profiles where a secured business loan can be an ideal solution – if you find yourself in one of these, it’s likely worth considering:

Businesses Needing a Large Capital Boost: If you have big plans – a major expansion, acquisition, or project – that require a significant sum, secured loans let you borrow larger amounts. For example, raising seven-figure funding to buy out a competitor or open a new location is typically only feasible by leveraging assets. Secured loans are often used to finance business expansion, such as opening new locations or acquiring assets to support your company’s growth.

SMEs with Valuable Assets: Companies that own property, expensive machinery, or substantial inventory can unlock those assets’ value. Instead of being cash-strapped while sitting on assets, you borrow against them to get working capital. This is common in manufacturing, construction, transportation, etc., where asset values are high.

Startups and Early-Stage Businesses: If you’re relatively new and don’t have a long financial track record, traditional bank loans (especially unsecured) can be hard to get. But if you or your business have collateral – maybe you personally own property or the business owns some assets – a secured loan may be viable even with limited trading history. It’s a way for startups to get funding when other options (like venture capital or unsecured loans) aren’t available or are too expensive.

Businesses with Less-Than-Perfect Credit: Maybe you had a tough year or some credit blips in the past. Lenders focus more on the collateral and the future of the business with secured loans, so imperfect credit scores or past issues are less of a deal-breaker. As long as the underlying business is solid now and you have assets to secure the loan, we can often find a solution.

Those Seeking Better Loan Terms: Perhaps you can get an unsecured loan, but the rate or amount isn’t ideal. By opting for a secured loan, you could potentially qualify for a lower interest rate or a longer repayment term, making the financing more affordable. It’s a strategic move if you’re looking to minimise costs or monthly outlay.

Owners Who Are Willing to Pledge Collateral for Growth: Ultimately, a secured loan is for business owners who are comfortable using business or personal assets to support the funding. If you strongly believe in your growth plans and are confident in your ability to repay, leveraging your assets can be a smart way to fuel that growth. Secured loans can support your expansion plans by providing the necessary capital for growth initiatives and business expansion. You’re essentially putting skin in the game – and in return, you get better financing options.

If any of the above sounds like you, a secured loan might be a great fit. Of course, it’s important to weigh the risks (next section) and ensure you have a clear repayment plan. Funding Guru will help you assess the fit and make an informed decision.

Risks and Considerations

In the spirit of being transparent and honest (which is core to how we operate), let’s talk about the risks and things to watch out for with secured loans. While they offer big benefits, you need to go in with eyes open:

Risk of Asset Loss:
The number one risk is that if you default (fail to repay), the lender has the right to take possession of the collateral asset. For example, defaulting on a loan secured by your property could lead to the lender forcing a sale of that property to recover their money. In the event of a loan default, the lender may seize the collateral to recover the outstanding debt. This is a serious consideration – never borrow more than you’re confident you can repay. We’ll always help you plan conservatively, but unforeseen events can happen, so think about worst-case scenarios with any secured borrowing.
Upfront Costs (Valuations & Fees):
Secured loans can come with some initial costs that unsecured loans typically don’t. Commonly, you might need to pay for an asset valuation or survey (especially for property collateral) and legal fees to register the security. These costs often occur before drawdown. For instance, if you’re using a building as collateral, the lender may charge a valuation fee and the cost to put a legal charge on the property. You pay these costs regardless of whether the loan completes (e.g., if the valuation comes in too low and the loan can’t proceed, the valuation fee is usually non-refundable). The good news: many lenders will allow these fees to be added to the loan, so you don’t always need to pay out of pocket, but it does increase the loan balance.
Longer Approval Process:
While we pride ourselves on speed, a secured loan still has more steps than an unsecured one. The need to evaluate collateral and handle legal paperwork means it can take a bit longer to get funds (often 1-3 weeks, depending on complexity). If you have an urgent cash need that doesn’t allow for this, we might explore interim solutions (like a smaller bridging loan or overdraft) to tide you over.
Loan-to-Value Limits:
You might not be able to borrow 100% of your asset’s value. Lenders usually cap the Loan-to-Value (LTV) ratio – often around 50% to 75% of the asset’s value (we cover this in the next section). This means you need to have enough asset value to support the loan amount you want. If not, you may need additional collateral or to consider a smaller loan.
Debt Commitment:
As with any loan, taking on debt means committing future cash flow to repayments. Even if the rate is low, over a long term you could be paying a lot of interest in total. Always consider the overall cost of borrowing and ensure the investment you’re making with the loan proceeds will generate a good return for your business.
Asset Ownership:
Understand that any asset used as collateral may have a lien or charge placed on it by the lender. This means you typically can’t sell that asset while the loan is in place without the lender’s permission (the lender would need to be paid back from sale proceeds). This isn’t so much a risk as a limitation to be aware of – your asset is tied up until the loan is cleared.
Personal Guarantee Liability:
If you’ve given a personal guarantee, remember that even if the collateral doesn’t fully cover the debt, you’re personally on the hook for the remainder. In a default scenario, the lender could pursue your personal assets (like your home or savings) to make up the shortfall. If the business fails and cannot repay the loan, the lender may pursue the guarantor's personal assets to recover any remaining outstanding debt. We only mention this to ensure you weigh that responsibility seriously.

Bottom line: Secured loans carry real consequences if things go wrong, but with careful planning and a solid business strategy, they can be a powerful tool. Funding Guru’s advisors will always be upfront about these risks. Our goal is to help you succeed, not to put your business or assets in jeopardy. We’ll work with you to structure a loan that is prudent and affordable, and we won’t shy away from telling you if we think something is too risky.

Borrowing Limits & LTV Explained

How much can you borrow with a secured business loan? The answer often comes down to something called the Loan-to-Value (LTV) ratio. This is a key concept in secured lending. In simple terms, LTV is the percentage of the asset’s value that a lender is willing to lend you.

For example, an LTV of 70% on an asset worth £100,000 means a £70,000 loan. Lenders use LTV to ensure there’s a cushion – they don’t want to lend 100% of the asset’s value, because if they had to repossess and sell it, its value might drop or there could be costs involved in selling.

Typical LTV ratios for secured business loans vary by asset type and lender, but here are some ballpark figures:

Property:
Often up to ~70-75% LTV on commercial or residential property. So, if your commercial unit is valued at £500k, you might borrow around £350k (70%). Some aggressive lenders might go a bit higher, especially if additional security or guarantees are in place, while more conservative ones might cap at 50-60%.
Equipment/Inventory:
These depreciating assets usually see lower LTVs, perhaps in the 50-70% range. Lenders may lend ~50% of the auction value of machinery, for instance. Inventory might also be 50% or so, depending on how quickly it turns over and how easily it could be sold.
Invoices:
Invoice finance effectively works on an advance rate rather than LTV, but you often get around 80-85% of the invoice value upfront. The remaining 15-20% (minus fees) is received once your client pays the invoice.
Mixed Collateral:
If you’re using multiple assets, the overall LTV will be some blend. One asset might support a high LTV and another lower. We’ll calculate it with the lender to maximize your borrowing while staying within safe limits.

It’s worth noting that some lenders can consider 100%+ LTV in special cases – for example, if you have additional collateral or a strong personal guarantee, they might effectively lend more than the value of one asset by taking multiple security. Also, certain government-backed loan schemes or fintech lenders might stretch LTV if they have other risk mitigation.

Calculating LTV: It’s simply (Loan Amount ÷ Collateral Value) × 100%. If you’re unsure of your asset’s value, we can help guide you on getting a valuation. Lenders will usually require an independent valuation for property or specialised assets as part of the process.

Understanding LTV helps set realistic expectations. If you tell us you need £1 million but only have an asset worth £500k, we know that’s likely unachievable due to LTV limits. Instead, we’d discuss either using additional collateral or considering alternative funding routes for the excess.

Matt Haycox

Founder and CEO, Funding Guru

Founder’s Note: A Word from Matt Haycox

“Every business hits roadblocks when it comes to funding – I’ve been there myself. The beauty of a secured business loan is that it turns your assets into opportunities. Rather than letting your property or equipment just sit on the balance sheet, you can leverage them to fuel growth. It’s a pragmatic approach: you’re using what you own to get what you need. Our mission at Funding Guru is to make that process quick, clear, and stress-free. We cut out the nonsense, so you know exactly what your options are. In today’s market, UK businesses need fast and flexible funding solutions, and secured loans are often the smart choice to unlock big finance at low rates. We’re here to help you make it happen – with honesty and a personal touch.”

Why Choose Funding Guru?

When it comes to arranging secured business funding, we know you have options. So what makes Funding Guru stand out? In short, we combine the reach of a finance broker with the care of a personal advisor. Here are a few reasons businesses across the UK partner with us:

Proven Expertise:
We’ve helped over 500 UK businesses secure the funding they needed to grow. In total, we’ve facilitated £750M+ in funding for SMEs – so you’re tapping into a wealth of experience and lender relationships. Our team are seasoned finance professionals who understand the ins and outs of secured lending.
Fast & Flexible Solutions:
We know speed matters. Our process is optimised to move quickly – we aim to get you an offer in principle within 24 hours whenever possible. Need funds in a hurry? We can often arrange completion in a few days (some bridging loans even within 48 hours). We also tailor the solution to you: from bridging loans to long-term mortgages, we structure repayment terms that match your business’s rhythm.
Personalised Guidance, No Jargon:
Financing can be complex, but we make it simple and human. You’ll have a dedicated advisor to walk you through every step, answer any question, and keep you updated. We explain options in plain English – no jargon, no hidden fees, no stress. Our clients often tell us it feels like having a knowledgeable friend on their side (rather than a stuffy banker).
Transparent and Trustworthy:
Trust is huge when it comes to financial partnerships. We pride ourselves on honesty and transparency. From day one, we’ll tell you exactly what’s achievable, what it will cost, and what the process involves – so you’re never in the dark. There are no upfront fees to engage our service; we typically earn a commission from lenders only when a deal is successfully completed. And if a secured loan isn’t right for you, we’ll say so and help find a better alternative.
Holistic Support:
Because we offer multiple funding solutions (secured loans, unsecured loans, asset finance, invoice finance, etc.), we can take a holistic view of your business finance. Perhaps a secured loan is part of the answer along with another product – we’ll advise on the optimal mix. We’re not just pushing one product; our goal is to genuinely solve your funding challenge in the smartest way.
Client Sucess Stories:
Nothing speaks louder than results. We’re proud to have helped businesses from retailers and restaurants to construction firms and tech startups. Check out our testimonials below to see how we’ve made a difference for entrepreneurs like you. We measure our success by your success – when you secure funding and achieve your goals, that’s our win too.

In short, Funding Guru offers the firepower of a large financial institution, delivered with the care and attention of a boutique service. We’re authoritative but approachable, and we genuinely care about your business. When you choose us, you get a partner who will fight to get you the best funding and make the journey easy.

Testimonials

"We have worked with Funding Guru for varied lending needs for over 10 years now. From arranging invoice finance, to leasing new vehicles, to cashflow assistance - Matt and his team never disappoint. When we first started our business securing finance was far from easy but Funding Guru provided solutions that few others couldn't and they have continued to support us as our business has developed and grown to an 8 figure turnover."

"Coming out of COVID our business, like most, wasn't in a great place. We hadn't been able to trade for over a year and finding finance options was proving difficult for us. Funding Guru was prepared to look at what a successful business we had been prior to the start of the pandemic, and what great opportunities lay ahead for us. The facility they provided solved our cashflow needs and allowed us to concentrate on being the UK's premier race team!'

"I knew Matt long before he was a lender, when he was building his own businesses and finding creative ways to finance his growth. So as soon as he started Funding Guru I knew there was only going to be one person to talk to about my own business finance requirements!"

Secured Loans Frequently Asked Questions

How is a secured business loan different from an unsecured loan?

A secured loan requires collateral – you’re backing the loan with an asset (like property or equipment). An unsecured loan has no collateral. This means secured loans often let you borrow more, at lower rates, because the lender has something to fall back on. Unsecured loans rely solely on your creditworthiness and cash flow, so they usually come with higher interest and smaller limits. The trade-off is that unsecured loans don’t put specific assets at direct risk, whereas secured loans do.

How much can I borrow with a secured loan?

The amount depends on the value of the assets you can offer and the lender’s LTV (loan-to-value) policy. Generally, lenders might offer around 50-75% of your collateral’s value. For example, if you have a property worth £200k, you could potentially borrow £100k–£150k against it. At Funding Guru, we’ve arranged secured loans from as little as £25,000 up to £5 million or more in special cases. It really comes down to your assets and business profile. We’ll evaluate and give you an estimate of how much is feasible.

What can I use as collateral?

Common collateral includes real estate, vehicles, machinery, equipment, inventory, or even outstanding invoices. Basically, any tangible asset with significant value can potentially secure a loan. Real estate (commercial or residential) is most common for large loans. But we’ve also helped clients secure funding against fleets of trucks, specialized industrial machines, and more. We’ll help you identify which assets could unlock the funding you need.

Do I still need a good credit score for a secured loan?

Credit matters less for secured loans than for unsecured loans. The collateral gives the lender confidence even if your credit isn’t perfect. So, yes – you can often get a secured loan with fair or even poor credit, whereas an unsecured loan might be denied. Of course, the better your credit and overall finances, the better the terms you might get. But many of our secured loan clients come to us specifically because they were turned down elsewhere due to credit. With a valuable asset in play, lenders are more willing to say “yes”. We’ve seen clients with past issues (like a prior CCJ or late payments) still secure funding this way. Every case is different, and we’ll certainly advocate for you.

How long does it take to get the funds?

It can be surprisingly quick. In straightforward cases, we can often get you funds within 5 to 7 days from application to money in the bank. Some fast-track bridging loans even complete in 2-3 days. More complex loans (like high-value commercial mortgages with legal processes) might take a few weeks. The timeline depends on things like: how quickly we can get valuations done, how fast you provide documents, and the lender’s legal process. Rest assured, we push to get you funded as fast as possible. We know timing is critical, and our team will give you a clear idea of the expected timeline upfront.

Are there any fees I should be aware of?

We believe in no hidden fees. When working with Funding Guru, we’ll outline any and all fees before you proceed. Typically, possible fees include: a facility or arrangement fee (charged by the lender, often a percentage of the loan, which can usually be added into the loan), valuation fees (for property or assets – paid to a valuer), and legal fees (for the lender’s solicitors to set up the security). For example, a property valuation might cost a few hundred pounds, and a lender arrangement fee might be ~1-2% of the loan. Sometimes we can negotiate fees or get them reduced. Importantly, our initial advice and processing is free – you usually don’t pay us directly, we get compensated by the lender upon a successful deal. We’ll make sure you understand the total cost before committing.

Will I have to personally guarantee the loan?

In most cases for small businesses, yes, a personal guarantee (PG) is required even on a secured loan. This is standard across the industry. It means that you, as the business owner or director, agree to be personally liable if the business can’t repay. Lenders want to see that commitment. The PG is usually in addition to the collateral. One exception can be very large companies or loans fully secured by something like a property with lots of equity – occasionally a lender might waive the PG, but that’s rare for SME lending. If your spouse or co-director owns a significant share of the business, the lender may ask for their PG as well. We’ll walk you through the PG requirements and implications. It’s important to understand, but as long as you plan to repay, a PG is just an extra formality to get you the finance.

What happens if I can’t repay the loan?

If you run into difficulty, the first step is always to talk to us and the lender. Sometimes arrangements can be made (like temporarily interest-only payments or a refinance) if issues are short-term. However, ultimately, if a loan goes into default, the lender has the right to enforce on the collateral. This could mean repossessing and selling the asset to recover the debt. For example, with a secured property loan, they could take legal action to take ownership of the property and sell it. If there’s any shortfall (the sale doesn’t cover the full loan and costs), they can then pursue you under the personal guarantee for the rest. Defaulting will also impact your credit record severely. It’s a situation we all want to avoid. We’ll help you plan conservatively and consider insurance (like key person insurance or loan protection insurance) if appropriate. But if you ever anticipate trouble repaying, reach out early – there may be solutions like restructuring the loan, finding a new lender, or selling the asset yourself to clear the debt on better terms.

Can I repay a secured loan early?

Often, yes – but check the specific loan terms. Many lenders allow early repayment, though some might charge an early settlement fee or a few months’ interest as a penalty. Others are more flexible. For instance, certain loans we arrange come with no early repayment penalties, meaning you can clear the balance whenever you like and save on interest. We always highlight these features when sourcing your loan. If having the freedom to repay early is important to you, let us know and we’ll prioritise lenders with little or no penalties (some even let you make partial overpayments to reduce your balance faster). Early repayment can be a smart move if, say, you’re expecting a big inflow of cash in a year or two (like selling a property or business) and want to settle the loan then.

What can I use the loan money for?

Pretty much any legitimate business purpose. Secured loans are commonly used for expansion capital, buying equipment or property, hiring new staff, launching new projects, refinancing expensive debt, or just general working capital. There aren’t usually strict restrictions from the lender (unlike, say, a property mortgage where funds must go toward buying that property). As long as it’s for the business and makes sense, you’re free to deploy the funds where needed. We always like to hear your plan – it helps us advise and also present a strong case to lenders – but you’re in control of how to use the money to grow or stabilise your business.

Is a secured business loan my best option?

It depends on your situation. Secured loans are fantastic if you need a large amount or want the lowest possible rate and you have assets to leverage. They can be a game-changer for many businesses. However, if you only need a small sum or lack any collateral, an unsecured loan or alternative finance (like a merchant cash advance or peer-to-peer lending) might be more suitable. Likewise, if speed is of the essence and you can’t wait for valuations, an unsecured facility might be quicker to bridge a short gap. Our promise is to help you compare and choose the best funding option for your needs – even if that turns out not to be a secured loan. We offer all sorts of finance, so we’re not biased. During our consultation, we’ll discuss the pros/cons in context of your business and make sure you get the solution that fits best.