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Secured Business Loan
The complete Definition
What is a secured Business Loan?
Seeking a secured business loan for your company allows you to obtain long-term funding without the hassle of asking the bank.
A secured business or commercial loan is a loan secured against an asset of the borrower.
The most common forms of collateral which can be used are property, such as a house, shop or commercial building, or other tangible assets such as a vehicle, equipment, or plant machinery.
In some instances, business stock can be accepted as security too.
Understand how Secured Loans for Business Works
How do secured Business Loans Work?
secured Commercial Loans Explained
With a secured business loan the core process is quite simple: You secure your loan against a tangible asset and in the case that you default, the lender takes ownership of the asset and sells it to recoup money owed.
To minimize risk, finance companies and banks will always look more favourably at borrowers who are prepared to guarantee their loans with some form of security. The added benefit of you doing so is that the interest rates on secured loans are generally lower than their unsecured counterparts.
You’re able to borrow what you need against an asset at low-interest rates. By securing the loan against an asset, a lender may choose to lend in cases where they otherwise wouldn’t.
What you need to know about Secured Business Loans
If you’re a business owner with poor credit or an unenviable trading record – who would likely be turned down for an unsecured loan, you may well be accepted for a commercial loan with some form of asset to secure the loan against.
A typical example: You need a one-time lump sum for a new start-up venture. Sourcing a financing company to lend you the money can be tough. However, if you have an asset that you can use as security, you will stand a much better chance of obtaining the loan you need and will be able to spread the payments over a longer time period. This also allows new business owners to budget for the long term and take control of their finances from day one.
Which type of loan is right for your business
how long does a commercial loan last for and How much can I borrow?
You may be asking yourself, how long does a commercial loan last for? How much can I borrow?
Typically a secured loan could run anywhere from 1 to 5 years.
The value of a commercial loan can be much higher, making it a suitable choice for big-ticket purchases.
Depending on the asset offered as security and the track record of your company when applying, you could borrow anywhere from £2,000 to £500,000.
When looking for a secured loan it’s a good idea to do your homework. If you make sure you have a strong financial statement as well as a business plan which clearly lays out your anticipated turnover and profit, any lender will give you first priority. Coates is happy to advise you on how to put these documents together, so that you get the best outcome from your application.
Know the pros and cons as well as the difference
Types of Secured Business Loans
So, what types of commercial loans are there and which solution is the best for you?
Among the kinds of secured loans you’ll find on the market will be traditional term loans, self- securing loans for small businesses, business lines of credit and secured loans for bad credit.
In some rare instances, a business loan can be taken without collateral or even a credit check, but it is important to do your research to find a loan with terms that suit your business needs.
“Hit” the Apply For Finance button or complete the form below.
Contact us today if you need assistance and would like to discuss the various types of short to long-term secured business loans that we can make available to you.
Which type of loan is right for your business
Benefits of a Secured Business Loan
The benefits of a secured loan include:
- Larger sums can be borrowed compared to an unsecured loan
- Lower rates of interest
- Longer terms are available, thereby reducing monthly payment costs
- Better for companies with a lower credit score
The downside of a secured loan includes:
- Higher upfront fees to cover legal requirements
- The potential loss of the asset if payments are not made
- If you choose a variable interest rate, it may go up or down depending on the prevailing economic conditions.
Coates Finance will help you select the right type of secured loan for your business and choose a loan you can pay back with confidence.
a simple, straightforward process
How to Apply for A Secured Business Loan
Obtaining a secured business loan is a straightforward process. If you would like to know whether this type of loan may be available to you – please feel free to ask us.
Prior to the submission of your enquiry you must meet the minimum requirements before we can begin working with you:
- Applicant must be a Limited Company or Limited Liability Partnership
- The company must be based in the UK
- Company MUST NOT have any CCJs
If you would like to get started right away, please complete the simple enquiry form below – this will not affect your credit file and is for evaluation only.
You can also speak to one of our knowledgeable finance professionals for a FREE quote.
If you apply today we can process your loan agreement within 24 hours. Your funds will be transferred to you in as little as 5 days.
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Why Choose Coates Finance?
Key benefits of working with Coates Asset Finance
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Here is what we need to get started with your application for a secured loan
Fast Finance in 3 Easy Steps
Our friendly team of experts are waiting to assist you and your company with an application for a loan.
We’ll help you finalise a solution that meets your needs, and take the hassle out of the decision-making process so you can spend more time on what matters to you most – growing your business.
We have streamlined the application process and made it super simple to apply for the funding you need.
Complete the short form below and let’s get started today.
Complete the form below and speak to one of our knowledgeable finance professionals, who will answer your questions and guide you through the final steps to a solution that works for you.
Call us on 01904 492851
You can also give us a call if you need immediate answers to your questions. Our friendly experts will happily answer any questions you may have before you begin your application.
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9:00am – 5:30pm Monday to Friday
(excluding UK bank holidays)
3 steps to success
We'll Help You Every Step Of The Way
Follow the simple 3 step process to finance your business today.
Once you have completed the first step, we will get you on a call to answer any more detailed questions you may have and move quickly towards getting your financial requirements successfully approved
Complete the Form
Complete the simple form below and apply online for the amount you need to grow your business
Receive Fast Approval
We will process your application and aim to get you approved for your desired amount in 24-48 hours
Now you’ve been approved, you can acquire the assets for you require to grow.
Let's Get Started
All you need to do is complete the form and submit your application to get started today