A secured business loan is where a business’ commercial property or owner’s residential/By to let property is used as collateral. Therefore, the amount of money a business can loan usually depends on the value of the assets secured on. The more equity you have in the selected property the more you will be able to borrow.
Examples of assets include; Residential, Commercial, Semi Commercial and By to let properties. Secured business loans often have better interest rates than unsecured business loans due to them being less of a risk for the lender.
For secured business loans, rates start from 5.95% per annum.
Am I eligible for a Secured Business Loan?
UK homeowners that are a director of a limited business are eligible for secured business finance.