Secured Loans for UK Businesses
- Loan from £25k to £5 million +
- Trusted by 500+ UK business owners
- Same day decisions
- Bad credit accepted
- Flexible repayment terms
what our secured business loans offer you
Flexibility For Your Business, Fast
We deliver funding (without the delays of banks) to keep your business mobile.
Competitive Interest Rates
Benefit from lower interest rates (APR) tailored to your business's financial profile.
Access Higher Loan Amounts
Unlock substantial funding with secured loans against your collateral.
What is a Secured Business Loan?
Borrow money by using an asset as collateral. This collateral could be commercial property, machinery, vehicles, stock, or other valuable assets that the lender can claim if the borrower fails to repay the loan. This ensures a quick and straightforward way to secure an affordable cash injection for your business.
Because secured loans involve collateral, businesses can typically access higher loan amounts, lower interest rates, and longer repayment terms. Secured loans are typically less expensive than unsecured loans.
What Can a Secured Loan Be Used For?
Businesses thrive when they can seize opportunities and secured loans provide your business with options. You can use a secured loan for any business purpose, here are just some examples:
- Purchasing or refinancing commercial property.
- Hiring the best talent to grow your business.
- Buying new equipment, vehicles or innovative tech.
- Working capital to cover payroll
- Debt consolidation
- Buying out partners or shareholders
- Expanding operations
- Improving cash flow
Application Process for Secured Business Loans
1. 60 Second Online Application
Take one minute out of your day to fill out our online application form.
2. Collateral Evaluation
Our experts assess the value and feasibility of your proposed collateral.
3. Approval Within 1 Day
Experience a swift approval process, often within days.
4. Access Funds to Fuel Growth
Once approved, the secured funds will be accessible within 14 days.
Benefits of Secured Loans for Growing Businesses
Secured business loans are an attractive financing option for businesses that have valuable assets to pledge as collateral. Here’s a few examples of the benefits on offer:
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Higher loan amounts:
If your business wants to take the next step - chances are, you’re going to need a chunk of cash to do it. Because secured loans are backed by assets, lenders offer larger loan amounts, making them ideal for businesses who want to invest in expansion, equipment, or property. -
Lower Interest Rates:
With collateral lowering risk, secured loans have lower interest rates than unsecured loans, helping you save on costs and improve cash flow for your business. -
Easier Approval Process:
When you use your assets as security, lenders tend to be more flexible on credit history, allowing businesses with lower credit scores to qualify. -
Helps Build Business Credit:
Timely repayments on a secured loan improve credit ratings, making future financing easier and more favourable.
Learn more about the advantages and disadvantages of secured business loans here.
Differences Between Secured vs. Unsecured Loans
Secured loans are tied to your collateral (property, stock, machinery) where unsecured loans are evaluated on business financials and credit scores. Secured loans are seen as less risky for lenders, so they benefit from lower interest rates and longer repayment terms than unsecured.
Read our in-depth discussion of the key differences between unsecured and secured loans in our blog.
Interest Rates for Secured vs. Unsecured Loans
| Secured | Unsecured | |
| Interest Rate | 5% | 10% |
| Amount Borrowed | £25,000 | £25,000 |
| Loan Term | 5 years | 5 years |
| Monthly Repayment | £471.78 | £531.16 |
| Total Interest | £3,306.80 | £6,869.60 |
Types of Secured Loans
We offer a variety of secured business loan options to suit your specific needs. Explore the most common types below:
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Commercial Mortgage:
Secure financing against a property purchase. In the event of default, the lender may take possession of the property, selling it to recover the owed amount. -
Asset Finance:
Obtain a loan secured against assets like vehicles, machinery, or property. If default occurs, the lender can seize and sell the assets to recover the borrowed funds. -
Bridging Finance:
A short-term solution for swiftly purchasing a new property or releasing funds from an existing property. Ideal for bridging financial gaps while awaiting proceeds from a sale or approval for a long-term loan, such as a commercial mortgage. -
Invoice Financing:
Secure financing against outstanding invoices, repaid with a small interest amount upon invoice payment. Learn more about how invoice finance works in our detailed article. -
Inventory Finance:
Collateralize borrowed funds with inventory products. If unsold and the loan remains unpaid, the lender may seize the inventory to recover the outstanding amount.
Founder and CEO, Funding Guru
Thoughts from Matt
“A secured loan can be a great way to borrow larger sums of money over a longer period of time. The lender uses assets from your business as security against the loan, meaning you can get a better interest rate and borrow more money.
But be aware that if you are not able to repay the loan, you risk losing your assets. Make sure you are able to afford the repayments so you don’t put your business and assets at risk.“
How much can I borrow on a secured business loan?
You are likely to be offered up to a maximum of 75% of the value of your assets, although in certain circumstances it is possible to borrow up to 100% of the value if additional security can be offered. For example, if you have £1 million in assets, you could borrow up to £750,000 to £1 million depending on the circumstances.
Is a Secured Business Loan Right for You?
Secured business loans aren’t without risk. But they are ideal for companies that:
- Need substantial funding with flexible repayment options
- Have valuable assets to use as collateral
- Want to reduce borrowing costs with lower interest rates
- Are looking for long-term repayment plans to ease financial pressure
While secured loans provide many benefits, it’s essential to ensure your business can manage repayments. Defaulting on a secured loan could result in the loss of pledged assets, so businesses should carefully assess their financial situation before applying.
What can be used as security for a business loan?
Any valuable asset can conceivable be used as security for a business loan, here are some common examples:
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Real Estate:
Whether it’s land, commercial property or residential - the tangibility of real estate makes it an ideal asset for business loans. -
Machinery:
If you’re in manufacturing, construction or similar industries, the valuable machines you use day-to-day can be used as security on your loan. -
Accounts Receivable:
Don’t have physical assets but you do have a steady stream of customers? Using accounts receivable for a business loan could work for you.
We go into further detail on different types of collateral for business loans in our blog.
Why Choose Us
Unlock lower rates, higher borrowing power, and flexible terms with Funding Guru. Simple, secure, and tailored to help you achieve more.
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Personalised Solutions:
Funding Guru’s flexible financing options are designed to meet the needs of your business, no matter the pickle you may be in. -
Transparent Approach:
We provide transparency at every step of your financing, so you can make financial decisions with confidence. -
Tangible Success Stories:
You can join a network of successful businesses that have grown with Funding Guru’s expert support and guidance. -
Decades of Knowledge:
We have been in your shoes. With Funding Guru, you have a partner with decades of industry experience, so you can navigate the complexities of business finance with insightful guidance. -
Keeping it Simple and Efficient:
Our no-fuss process makes obtaining business finance quick and efficient, giving you more time to focus on growing your business.
Testimonials
Secured Loans Frequently Asked Questions
How do secured business loans work?
Secured business loans work by using your business assets as collateral to back up the loan. This could be anything valuable that your business owns, like real estate, equipment, or inventory. By offering this security, lenders are more willing to provide you with a loan at a lower interest rate because they have something to fall back on if things don’t go as planned. Essentially, it’s a way for both you and the lender to feel more confident about the loan process.
What are the benefits of secured business loans?
Secured business loans come with several perks. First, they usually offer lower interest rates because the lender has something to fall back on. You might also be able to borrow more money and have longer to pay it back compared to unsecured loans. Plus, if you have valuable assets but a less-than-perfect credit score, a secured loan can still be within your reach, giving you the funding you need to grow your business.
Can startups qualify for secured business loans?
Absolutely! Startups can qualify for secured business loans. If your new business has valuable assets to offer as collateral, lenders may be willing to take the risk. They’ll also look at your business plan and personal credit history to make sure you’ve got a solid strategy in place. It’s a great way to get the funds you need to get your business off the ground.
What happens if I default on a secured business loan?
Defaulting on a secured business loan is a serious matter. If you’re unable to make your loan payments, the lender has the right to seize the collateral you put up. This could mean losing essential business assets like property or equipment, which can be a big blow to your operations. It’s important to have a clear plan to avoid this situation and keep your business on track.
What are the repayment terms for secured business loans?
Repayment terms for secured business loans can be quite flexible. They typically range from one to ten years, depending on the loan amount, the value of the collateral, and the lender’s policies. At Funding Guru, we work with you to find repayment terms that fit your business’s cash flow, making it easier to manage your finances while you grow.
Why should I choose Funding Guru for my secured business loan needs?
Choosing Funding Guru means you’re partnering with a team that truly understands your business needs. We offer personalised loan solutions with competitive rates and flexible terms. Our experienced team takes the time to get to know your business and provide tailored financing options that support your growth.
Is a car loan a secured debt?
Yes, a car loan is a secured debt because the vehicle itself serves as collateral. If you fail to repay, the lender can repossess the car.
Will a secured loan affect my mortgage?
A secured loan can impact your mortgage if it’s tied to your property, as it increases your overall debt. Lenders may consider it when assessing affordability for future borrowing.
How long does a secured loan take?
A secured loan typically takes a few days to a few weeks, depending on the collateral evaluation and approval process.
Are secured loans cheaper?
Yes, secured loans are generally cheaper because they are backed by collateral, which reduces the lender’s risk. This allows lenders to offer lower interest rates, higher loan amounts, and longer repayment terms compared to unsecured loans.
Are secured loans safe?
Secured loans are safe if you can meet the repayment terms. However, if you default, the lender can seize your collateral, such as property or assets.
Can I get a secured loan against my house/ property?
Yes, you can get a secured loan against your house or property, but failure to repay may result in the lender repossessing it.
Can I get a secured loan with no income?
It’s challenging to get a secured loan without income, as lenders typically require proof of the ability to repay. However, if you have valuable collateral, some lenders may still consider your application. Contact Funding Guru for personalised advice and loan options.
Can I pay off a secured loan early?
Yes, you can usually pay off a secured loan early. However, some lenders may charge early repayment fees, so it’s important to check the loan terms.
Can I transfer a secured loan?
Transferring a secured loan to another party is generally not possible. However, you may be able to refinance the loan or transfer the collateral if the lender agrees. Always check the terms with our experts.
Can I refinance a secured business loan?
Yes, you can refinance a secured business loan. It involves replacing your current loan with a new one, potentially with better terms or a longer repayment period.
Does Your Business Require a Secured Loan?
