We'll help you find the right secured business loans

 The amount you can borrow may depend on the value of the assets you offer as security. You can use various business assets, including:

• Commercial property
• Vehicles
• Land
• Equipment
• Fittings and fixtures

However, it’s important to remember that if you miss repayments, the lender can seize these assets as part of their debt recovery process.

Lenders typically view secured loans as lower risk because the asset provides assurance of repayment. This makes lenders more confident in lending to your business and may allow for greater flexibility in terms. You could secure more competitive interest rates and longer repayment periods compared to an unsecured loan.

Businesses can generally borrow more with a secured loan, depending on the value of the asset being used as collateral. The more assets you offer as security, the higher the loan amount you may be eligible to borrow.

Since the loan is secured against assets, failure to repay could result in the seizure of those assets.  This type of loan may take longer to process compared to an unsecured loan, as asset valuations and other legal checks are required.

While both secured and unsecured business loans can generally be used for any business purpose, there are several key differences between them. The type of loan you can access will depend on how much you need to borrow and your specific situation. Additionally, the information in your business credit file will influence both the type of loan available to you and the terms you're offered.

If your business has no suitable assets to use as security, you might be able to secure a secured loan with a personal guarantee. 

In this instance, a  company director will offer a personal asset – usually a property – as  security on the loan.

 Although this is a legitimate way to secure business finance, it can be risky as you could lose your property if the business becomes insolvent. 

If you're looking for funds for expansion or new equipment, a secured business loan could be a great choice, as it provides access to larger loan amounts. It can also be a good option if your business has a low credit rating, as offering assets as security reduces the risk for the lender and improves your chances of approval.

To determine if a secured loan is the right fit for your business, contact the team at Vortex Financial on  07749 874 185. We’ll compare various solutions to help you find the financing that best suits your needs.