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Compare Secured Business Loans

Loans for businesses of every size and industry, from top UK lenders including:

6 providers
  • Nationwide Finance Limited logo

    Nationwide Finance Startup Loan

    • Nationwide Finance help 35,000 businesses get secured finance each year
    • Nationwide Finance are a Direct Funder
    • Eligibility checked - free, no obligation process
    • Unsecured options may be available to listed companies
    • Minimum annual turnover
      No minimum
    • Available amounts
      £6,000 - £10,000,000
    • UK Available terms
      12 months - 5 years
    See Deal
  • Funding Options logo
    Broker

    Funding Options Secured Loans

    • A funding solution where the lender takes a form of physical asset as security
    • Generally secured against commercial or residential properties
    • Minimum annual turnover
      £50,000
    • Available amounts
      £5,000 - £15,000,000
    • UK Available terms
      3 months - 5 years
    See Deal
  • Barclays logo

    Barclays Secured Business Loans

    • Set your repayment terms, up to 25 years
    • Fixed or variable rates to choose from
    • Interest-only repayments available (subject to status and application)
    • Minimum annual turnover
      No minimum
    • Available amounts
      £1,000 - £100,000
    • UK Available terms
      12 months - 25 years
    See Deal
  • Funding Xchange logo
    Broker

    Funding Xchange Asset Finance

    • Asset finance solutions are designed to help businesses make a long-term investment in growth, spreading the cost of the asset over its operating life
    • Asset finance can be used to invest in new or used equipment, expanding your vehicle fleet, refinancing existing asset finance
    • Minimum annual turnover
      £50,000
    • Available amounts
      £5,000 - £300,000
    • UK Available terms
      2 - 6 years
    See Deal
  • Swoop Funding logo
    Broker

    Swoop Funding Asset Finance

    • Funding to help you access equipment, machinery or vehicles
    • Confidently acquire the business assets you need to grow and operate both efficiently and effectively
    • Enables you to buy or lease equipment
    • Minimum annual turnover
      £40,000
    • Available amounts
      £5,000 - £50,000,000
    • UK Available terms
      3 months - 10 years
    See Deal
  • Capify logo

    Capify Secured Business Loan

    • Secured Loan using your residential property as a security
    • All credit profiles considered
    • Same day approvals & funding possible in 48 hours
    • Minimum annual turnover
      £120,000
    • Available amounts
      £50,000 - £750,000
    • UK Available terms
      7 months - 2 years
    See Deal

    • Suppliers that don't offer Secured Business Loans but may offer suitable alternatives:

      • iwoca logo

        iwoca

        • Flexible finance for small businesses from £1,000 to £1,000,000
        • No long-term commitments and flexible repayments to fit your business
        • Apply online in minutes for a quick decision (some may take up to 24 hours). Applying won’t affect your credit score
        • Minimum annual turnover
          £10,000
        • Available amounts
          £1,000 - £1,000,000
        • UK Available terms
          0 months - 2 years
        See Deal
      • 2 more from iwoca
    • Portman Asset Finance logo
      Broker

      Portman Finance Group

      • Loans for any business purpose, from cashflow to new equipment, vehicles or expansion
      • Term business loans, recovery loans, short-term and flexible funding, asset finance, vehicle finance
      • Dedicated account managers to guide you, understand your business and find solutions tailored to your needs
      • Minimum annual turnover
        £100,000
      • Available amounts
        £10,000 - £2,000,000
      • UK Available terms
        3 months - 6 years
      See Deal
    • 365 Finance logo

      365 Finance Merchant Cash Advance

      Credit/debit card sales required
      • Pay back via a small % of future card sales
      • No security or business plans required
      • One all-inclusive cost. No admin fees, APRs or extras
      • Minimum annual turnover
        £120,000
      • Available amounts
        £10,000 - £400,000
      • UK Available terms
        4 - 18 months
      See Deal
    • YouLend logo

      YouLend Cash Advance

      Credit/debit card sales required
      • Optimise your cash flow and make repayments in line with your sales
      • No interest rate is charged, just a one-time fixed fee
      • Minimum annual turnover
        £36,000
      • Available amounts
        £3,000 - £1,000,000
      • UK Available terms
        1 - 18 months
      See Deal

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the sorting options at the top of the comparison table to order by other criteria.

Other comparisons

What is a business loan?

A business loan is a form of finance that can be used to help support and expand your organisation.

As with personal loans, you borrow a sum of money, and pay it back, with interest.

One of the most important differences between personal loans and business loans is that with a personal loan, you will be personally liable for repaying the amount you have borrowed.

With a business loan, as long as the appropriate company structure is in place, that responsibility falls to the business instead. This will not be the case, however, if you are a sole trader, or you have secured your business loan with a personal guarantee.

You can also typically borrow more through a business loan, while the interest payments on your business loan may be tax deductible unlike payments on a personal loan.

Types of business loan

Secured business loans

Secured business loans require that you put down an asset such as property as security. Secured loans often come with lower interest rates than unsecured loans as they represent less risk for the lender. They may also give you access to a larger loan amount over a longer term. However, secured loans come with the added risk that you could lose your assets if you miss the payments.

Compare secured business loans

Unsecured business loans

Unsecured business loans are a type of finance that does not require security. These types of loans tend to have higher interest rates because there is a greater risk of the lender losing money if you can't pay off what you owe. Unsecured business loans also require a good financial history and credit rating as evidence that the business will be able to repay the loan.

Compare unsecured business loans

Government loans

There may be government-backed business loans you can access. Examples include the Recovery Loan Scheme, introduced to help with the financial stresses caused by the Covid-19 pandemic, which has now been extended. What schemes are available can vary depending on government policy and changing economic circumstances across the country. So it can be useful to regularly check the Department for Business, Energy & Industrial Strategy's search tool for guidance on the business loan schemes available in your region.

Start up business loans

The Start Up Loan Scheme is a government-backed fund that currently offers personal loans of up to £25,000 to UK businesses owners that have been fully trading for less than 36 months or those looking to start a business. You can apply for free, and there are no early repayment charges. If your application is successful, you'll also get up to 12 months of free mentoring. Government Start Up Loans have a fixed annual interest rate of 6% and must be repaid over a period of one to five years.

Compare start up business loans

Small business loans

Small business loans are for start ups and small businesses to access funding. They can be used for a variety of purposes from hiring new staff to managing cash flow. As with all loans, small business loans are repaid over an agreed time period with interest. Large business loans tend to be cheaper than small business loans because there is less perceived risk with lending to a bigger company.

Compare small business loans

What is a secured business loan?

A secured business loan is a type of loan that a company can apply for using its assets as collateral. If the business defaults on its loan repayments, the lender can then claim ownership of, and sell, the assets used as security instead. Because of this effective guarantee, it’s often possible to borrow more or obtain a lower interest rate with business loans secured against property than with an unsecured business loan where security isn’t required.

The way that they work means that secured business loans might also be referred to as asset-backed loans or asset-backed finance. Sometimes they’ll also be called secured small business loans.

Types of secured business loans

There are various types of secured business loans available, including:

  • Term loans - secured business term loans can usually be set for the short, medium or long term. Repayments are made each month, so that the loan is gradually paid off over the entire term.
  • Interest-only loans - this type of business loan will be fixed for a set amount of years, but in that time your monthly repayments will only ever pay off the interest. This keeps repayments low, but at the end of the term you’ll either need a way to pay off the original loan amount or will need to refinance the capital amount to a new loan.
  • Bridging loans - these secured business loans are designed for the short term to ’bridge’ financial gaps. A bridging loan is usually paid off via a single ‘bullet’ payment covering both the capital and interest at the end of the term.

» COMPARE: Business bridging loans

What types of collateral can be used to secure against the loan?

Most lenders will accept tangible or hard assets such as property, land, equipment, or machinery as security against a secured business loan. It may be possible to use cash as collateral, although the conditions of cash secured business loans are often different compared to a business loan secured on property.

Some specialist lenders may also accept intangible or soft assets such as intellectual property, trademarks or patents as collateral, where valuing such assets can prove much harder.

Lenders are also usually willing to accept a combination of different assets as security, which could include assets that you own personally, like your home, car, or shares.

Pros and cons of secured business loans

Pros

  • Will often offer lower interest rates than like-for-like unsecured loans.
  • Can allow large loan amounts if sufficient assets are available as collateral.
  • Can usually be repaid over a long period of time.
  • Could be available even if your business has a bad credit rating or poor trading history.
  • May be available to start-up businesses with no trading history.

Cons

  • Your business must have suitable assets.
  • These assets are at risk of being lost if repayments aren’t made.
  • Can take longer to arrange, due to the involvement of assets and the need to make appropriate legal arrangements.

What’s the difference between a secured business loan and an unsecured business loan?

The main difference is that a secured business loan requires assets as security, while an unsecured business loan does not. Therefore the turnover of your company, its trading history and credit rating will be far more important considerations to a lender if you want an unsecured loan, where there is no collateral as a guarantee.

A secured business loan will usually have a lower interest rate than a comparable unsecured loan because having assets as security reduces the risk of a lender not getting its money back. Lenders of asset-backed loans are also often more willing to lend larger amounts and offer longer terms because of the security too; with an unsecured business loan, the maximum that can be borrowed will often depend on the turnover of your business.

With assets part of the equation, the process of applying for a secured business loan is usually lengthier and more complex than applying for an unsecured loan. Secured business loans also often have upfront fees to cover the additional expense of valuing and then making legal arrangements in respect of the assets.

Business Unsecured Loans FAQs

Is a small business loan secured or unsecured?

If you’re searching for a small business loan, you’ll find that both secured and unsecured options are available. Which is better for you will depend on your business needs, circumstances and whether you have suitable assets to back a secured business loan.

Are secured loans easier to get than unsecured loans?

This will usually depend on your business circumstances. If your company has poor credit, an underwhelming trading history or low turnover, it might be easier to get a secured business loan. However, if you don’t have assets suited to getting a secured business loan, an unsecured loan may be your only option.

Can I get a business loan without security?

Yes, an unsecured business loan can be arranged without security. Instead, lenders will typically look at the credit standing, trading history and turnover of your business to decide whether you’d be able to meet the repayments.

Do secured business loans hurt your credit?

If you miss a repayment or default on your secured business loan, this will have a negative impact on your business’ credit score.

Will I need a personal guarantee?

You may be asked to provide a personal guarantee as added security if your business operates as a limited company or a limited liability partnership. Sometimes, a personal guarantee might also be requested by a lender if the assets put forward for a secured business loan aren’t of a high enough value to cover the loan amount you want.

What if I don't have any business assets?

If your company doesn’t have assets, it may still be possible to get a secured business loan using only a personal guarantee as security. Alternatively, you may want to consider an unsecured business loan.