Secured Business Loans

Last updated: 25/02/2025

Secured business loans for UK businesses

A secured loan are an ideal option for businesses who require funding where they can use one or more of their assets as security against the money they borrow. A secured loan is sometimes a more popular type of business loan as the additional security in an asset reduces the risk for the lenders, which usually allows you to borrow more and at lower rates than with an unsecured business loan. The added security can lower the risk which leads to an increase the likelihood of being approved for a secured business loan.

Read the article: Secured vs Unsecured Loans: What is the difference?

What is a Secured Loan?

A secured business loan is a type of loan that gives businesses the opportunity to secure funding by using assets such as a business property as security. Before the property can be used as security, an evaluation is required to ensure the property is suitable. If you or your business owns property, a secured loan offers another method of acquiring funding.

Typically a secured loan takes longer to secure approval due to the valuation process, which is necessary for the lender to assess the value of the property being used as security. This valuation ensures that suitable security is in place and that the property's value is sufficient to support as the security for the loan. The amount of capital that can be financed with a secured business loan is typically tied to the property's value, with lenders typically offering up to 75% of its worth. However, because secured loans provide collateral, they are generally considered lower risk by lenders. As a result, businesses may benefit from larger loan amounts, longer repayment terms, and an improved chance of approval compared to unsecured financing options.

Benefits of secured loans

Some of the benefits of using a secured loan are:

• Access to higher loan amounts
• Longer repayment terms
• Access to lower interest rates
• Security provided to the lender
• Increased approval rates

How does a secured business loan work?

1. Once you contact us, we will ask you to send over some information. Depending on your business and what you’re planning on using the loan for, this could include your latest set of accounts, last 6 months’ bank statements and personal details of any directors.
2. After confirming the above information, we will apply to our wide panel of funders, who will usually come back with an answer in 48 hours. Identification checks and know your customer requirements will also need to be carried out on the business and the directors.
3. When you confirm you wish to proceed with the terms and conditions of the secured loan, you will be sent the documentation for your signature and return. Once all final checks have been carried out the funds are then released to you.

Am I eligible for a secured business loan?

We can work with a wide range of businesses to help them acquire a secured loan.

Ranging from SMEs to established corporate companies we can help most businesses with funding lines.

However you must have a UK-based business and operate as a limited company or a partnership.

Things to consider for a secured loan

Amount: 75% of the asset used for security can be funded.

Purpose: Can be used for any legitimate business purpose.

Time length: Approval times are extended due to the valuation process.

What can I use a secured business loan for?

• Expansion
• Working capital
• Hiring new staff
• Purchasing new inventories
• Research and development
• Debt relief
• Refinancing existing assets
• Pay suppliers

Alternative solutions to secured business loans

Unsecured business loan: An unsecured loan is a type of business loan based solely on the borrower's creditworthiness, without the need for collateral. 

Working capital loan: A working capital loan is a type of loan that provides businesses with the funds needed to cover every day operational expenses.

Small business loan: A small business loan is a type of loan specifically tailored to help small businesses with funding for growth, operations, or specific needs. 

How to apply for a secured loan

MAF Finance Group works with a wide panel of banks and alternative funders and can assess which funder provides the most competitive financial solution for you.

If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].