What is a Secured Business Loan?

Secured Business Loans allow your business to make significant investments in fixed assets.

Secured Business Loans

There are many loans available to businesses and a Secured Business Loan is suitable where businesses make significant investments in fixed assets as it allows you to draw funds against an asset such as machinery or property. It’s arranged for a fixed period, typically over the expected life-span of the asset used to secure the loan and most lenders will offer to lend up to 80-100% of the value of the asset.

£1,000 - £10,000,000*

*maximum amount depending on value of asset

18 months – 25 years

Secured business loans can be arranged for a fixed period, typically over the expected life-span of the asset being purchased

4% - 20% APR

Costs vary significantly based on your credit rating, the type of asset, the amount of lending and other factors. Expect annualised costs of around 4%-20%

Secured Finance at a glance

Time Trading and Revenue

To apply for a secured business loan you can be a start-up and trading for under a year. You don’t necessarily have to state your revenue either as the lender will offer the loan based on an asset, although it’s advisable to offer the information

Credit Record

Lenders will require you to provide an acceptable asset as security, with the value of the asset typically being at least 100-125% of the loan amount. You must have equity / net assets in the business.


A secured business loan is typically acquired with a fixed period contract with agreed repayments, which can vary significantly depending on the asset used to secure the loan.

Personal Guarantees

A secured business loan will be secured against an asset. In addition, a personal guarantee may be required, which is an agreement that means a director takes on a certain level of personal responsibility for the debt through their own finances/assets.

Your Resources

SME Funding Guide - Understand your options

Produced in association with our partners at KPMG Small Business Accounting.

Case studies – How we’ve helped

How Funding Xchange helps businesses access the finance they need on the best terms.

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Call us on 020 3695 3206 or email for help researching your business funding.

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