Business finance falls under two main categories: secured and unsecured. Choosing the right one is an important step to getting the right loan for your business. Secured loans require security whereas unsecured ones don’t.
Secured loans are based on valuable items owned by your business; the lender takes a charge over the asset and if you stop making repayments and sell it to recover their costs. Unsecured loans aren't based on any security, so the lender assesses your overall business position more closely and will be looking for strong profitability.
Because they're based on a tangible asset, secured loans are often cheaper than unsecured loans, and other aspects of your business performance aren't as important.
Based on an asset
You can borrow between 50-75% of the asset's value
You still own the asset
Often easier to get, and cheaper, than unsecured finance
Without tangible assets involved, unsecured loans can be more difficult to get than secured loans, and you often have to give a personal guarantee.
No need to own assets
Faster to arrange than secured loans (no valuations necessary)
Borrow up to 25% of annual turnover
Potentially more expensive than secured loans
Secured and unsecured flexible finance options available subject to eligibility
We compare 120+ lenders to find the right finance for you
A dedicated Business Finance Specialist will guide you through the process
It’s free, no obligation and won’t affect you credit score
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 Rate
Rates from 2.75% APR
1 month to 30 years terms
Disclaimer: Funding Options helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. 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. We are also able to make insurance introductions. Funding Options may receive a commission or finder’s fee for effecting such finance and insurance introductions.
*Eligibility criteria apply - see Tide website for full details.
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