Secured Business Finance: The Complete Guide

A loan which is backed by security, such as property or business assets. Business funding comes in all different shapes and sizes. There may be several lenders who will consider facilities with physical security underlying their loan.

Considerations

The type of charge the lender has will affect their rights over that property. If they have a first charge and your business defaults, they could repossess the property. Second charge lenders may not have the same immediate ability but can still restrict your ability to sell.

Why Want a Secure Loan?

• Lender might not lend without physical security.
• Access to larger facilities than unsecured options.
• Potential for lower interest rates due to reduced lender risk.