A secured loan could help you borrow more for your business as you can use business assets as collateral. Put simply, if your business can’t pay back the loan in full, the proceeds from the sale of assets can be used to pay off the remaining debt.
This type of loan could be the best option if your business needs a larger amount, as you could borrow anything from £200,000 to £1 million, or £3 million if you’re developing property.
The level of security required depends on the value and purpose of the loan.
- Typically secured against all assets of the business
- May require a personal guarantee
Property and large assets can also be used as security.