Secured business loans
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Secured business loans
- Up to $500k
- From 3 to 60-month term
- Used for any business purpose
- Same day funding
- Weekly, fortnightly or in some cases monthly repayments
- Interest rate lower than an unsecured business loan
Please fill out the contact form. Our experienced finance brokers will get in touch with you to discuss your needs
Secured business loans VS unsecured business loans
It’s easy to understand the difference between secured business loans and unsecured business loans. The first one allows the borrower to gain access to funding by putting down an asset as collateral against the loan; the second one does not require that you have an asset or property as collateral.
Traditionally secured business loan lenders are able to offer lower interest rates than a lender which only provides unsecured business loans. These two business loans products are based on a different level of risk. This results in a higher interest rate for an unsecured business loan but a more straightforward application process and less lending criteria to meet.
Secured business loans have a lower risk and therefore, a lower interest rate, but a slightly longer application process and more eligibility criteria that borrowers have to satisfy. The advantage of applying for an unsecured business loan is that a business does not need to put down assets as collateral. However, unsecured business loans are generally of a smaller amount and higher interest rate than secured business loans due to the risk to lenders.
Secured business loan: repayment terms
Secured business loan: benefits
Secured business loan: other benefits
Secured business loan: disadvantages
- An asset must be put down as security: to get approval for the loan, collateral (residential or commercial property, vehicle, machinery) must be nominated as security.
- The business operation can be at risk in case of default: this happens when the security is a primary asset for the company
Many small Australian businesses prefer to avoid a secured business loan because they prefer to avoid the disadvantages mentioned above. An unsecured business loan may be more suitable.
Secured business loan: how to apply
Thanks to our industry knowledge, we guide you through the process to find the lender that can provide the type and size of business loan that you are looking for. Our portfolio of lenders fund eligible small businesses with secured business loans. Let us help you to find the one that best suits your needs. It all starts with an enquiry. Call Lending Connect on 1300 911 621 or click on “get started now” and we call you back to see if you qualify for a secured business loan or unsecured business loan.
Our lenders usually require a combination of the below as a part of an application: