Secured business loans – Borrow more with lower rates
A secured business loan lets you borrow money using an asset - such as property, equipment, vehicles or invoices - as collateral. Because lenders have extra security, you can usually borrow larger amounts, often at lower interest rates, compared to unsecured loans.
Funding Options by Tide works with over 80 lenders and has helped 17,000+ UK businesses secure over £1bn in funding. Compare secured loans in minutes and find the right deal for your business.
What is a secured business loan and how does it work
What is a secured business loan?
A secured loan is backed by an asset your business owns. The lender takes a legal charge over that asset. If repayments aren’t made, the lender can recover costs through it.
Common types of secured business loans include:
Property-backed loans – where commercial or residential property is used as security
Asset finance – funding secured against equipment, vehicles or machinery
Invoice finance – money advanced against your unpaid invoices
How it works
You apply for a loan and agree to provide collateral.
The lender assesses the value of your asset and sets terms accordingly.
If approved, you receive funds as a lump sum or facility.
You repay in instalments, with interest and fees.
If repayments are missed, the lender may enforce the charge on the asset.
Key features of secured loans
Loan amount: Typically from £10,000 to £20M
Interest rate: Lower than unsecured loans (but varies by lender)
Term: Often between 1 and 10 years
Collateral required: Property, machinery, vehicles, invoices, or other assets
Approval time: Longer than unsecured loans due to valuation checks
Common types of security
Commercial property: office space, warehouses, retail units
Personal property: your home (if used as a personal guarantee)
Equipment or vehicles: business-critical assets like vans or machinery
Outstanding invoices: future receivables or debtor books
Cash reserves or savings: less common, but acceptable for some lenders
Example
A business wants to borrow £250,000 to expand into a second site. By securing the loan against their commercial premises (valued at £800,000), they access a competitive interest rate and a 7-year term - far better than they could with an unsecured loan.
When are secured loans useful?
Secured loans can suit businesses that:
Need a higher borrowing limit (often £50,000 to £20m)
Want lower interest rates than unsecured options
Have assets they can use as collateral
Plan long-term investments like property, equipment or expansion
They may not suit businesses without significant assets, or those that prefer to avoid putting property or personal guarantees at risk. See unsecured business loans as an alternative.
Is a secured business loan the right choice for your business?
Pros and cons of secured business loans
Pros | Cons |
Higher borrowing limits | Risk of losing assets if repayments fail |
Lower interest rates | Longer approval process (valuations, legal checks) |
Wider choice of lenders and products | Some require personal guarantees as well as assets |
Longer repayment terms available | Costs can rise with arrangement and valuation fees |
Better for businesses with weaker credit | Asset value must cover the loan |
Secured loans vs unsecured loans
Secured loans – Higher amounts, lower rates, asset required, longer approval.
Unsecured loans – Lower amounts, higher rates, faster approval, usually require a personal guarantee.
Choosing depends on how much you need, your credit profile and whether you have assets available.
Trusted by over 17,000 customers
What assets can I use for a secured business loan?
Range of asset types
Fortunately, the majority of lenders will accept a range of tangible and intangible assets as security, making secured business loans an accessible option for a variety of business sectors.
Property, land, and machinery
Common tangible business assets include, property, land, machinery, equipment, vehicles, accounts receivables.
Intangible assets
Intangible assets include trademarks, copyrights, intellectual property, licences and patents. You might be able to offer multiple assets or your own personal assets. Keep in mind that a personal guarantee may also be required.
Estimate your costs today
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Monthly payments
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Monthly interest
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Total interest
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Length of loan
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
Common use cases
Property development or commercial refurbishment
Buying expensive equipment or vehicles
Expanding into new locations or product lines
Refinancing existing debt on better terms
Investing in longer-term growth or acquisitions
Risks and considerations
Please consider:
Asset at risk: if you default, the lender can repossess the secured asset
Slower process: asset valuation can delay approval
Legal implications: personal guarantees or charges over property may apply
Less flexible: you can’t sell the asset while it’s being used as collateral without permission
Eligibility varies: not all businesses will qualify depending on credit score, trading history, and asset type
Secured vs unsecured loans
Feature | Secured Loan | Unsecured Loan |
Requires collateral | Yes | No |
Loan amount | Higher | Typically lower |
Interest rate | Lower | Higher |
Approval speed | Slower (due to asset checks) | Faster |
Repayment terms | Longer | Shorter |
Eligibility criteria
To improve your chances of approval, lenders will review:
type and value of the asset
business trading history (typically 12–36 months)
business or personal credit score
loan-to-value (LTV) ratio
purpose of the loan
Assets with clear ownership, strong resale value, or low existing debt against them are typically favoured.
How to apply for a secured business loan
Identify suitable assets to offer as collateral
Gather documentation: asset valuations, business accounts, proof of ownership
Compare lenders or use a broker like Funding Options by Tide
Submit an application and wait for the lender’s underwriting process
Agree terms and receive funds upon final approval
Costs and eligibility
Costs vary depending on:
Loan size and term
Type and value of collateral
Credit history and trading record
Industry and purpose of the loan
Lenders will expect:
Recent bank statements and accounts
Proof of ownership of the collateral
A viable plan to repay from trading income
Example scenarios
Property developer – uses a secured loan backed by property to fund a new site purchase.
Haulage firm – secures finance against vehicles to expand fleet capacity.
Manufacturer – raises money against machinery to upgrade production lines.
Alternatives to secured loans
Unsecured business loans
Unsecured business loans are for quicker access with no collateral
Invoice finance
Invoice finance to release money tied up in unpaid invoices
Asset finance
Asset finance to spread the cost of purchasing new assets
Revolving credit facility
Revolving credit facility is a reusable working capital
Merchant cash advance
Merchant cash advance is based on card sales, with flexible repayment
How does Funding Options work?
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How to apply with Funding Options by Tide
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Provide documents for underwriting.
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Why choose Funding Options by Tide?
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Learn more about secured loans
What assets can I use as security?
Property, vehicles, machinery, equipment and invoices are most common.
How much can I borrow with a secured loan?
Amounts range from £50,000 up to £20m depending on asset value and business profile.
Can I use personal property as security?
Yes, but it increases personal risk. Read terms carefully and consider the implications.
Do all secured loans require a personal guarantee?
Not always, but many lenders will ask for one alongside the asset. See personal guarantee loans.
What if I have bad credit?
Secured loans can still be an option. Lenders place more weight on the asset. See bad credit business loans.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Joe Morley
Business Finance Lead
Joe has been helping UK businesses secure the funding they need since 2015. Over the years, he’s supported hundreds of SMEs in accessing millions of pounds for everything from purchasing essential assets to unlocking working capital for day-to-day operations. As Head of Sales at Funding Options, Joe leads a large team of expert Business Finance Specialists dedicated to finding the right solution for every customer. His goal is simple - to make securing finance straightforward, stress free, and tailored to each business’s needs.