Secured business loans

A secured business loan allows for your business to borrow money with collateral. A loan is secured against an asset owned by the business or the director.
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Secured business loans

Typical forms of collateral, also called security, are residential or commercial property, vehicles, machinery or other equipment. The application process is quick and easy, as long as the business can provide a form of security against the loan.
  • 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: lending criteria

At Lending Connect, we talk to our clients to understand their needs and most importantly, their chances to qualify for a secured business loan. Lending criteria may change from lender to lender. Therefore we work with and for our clients to achieve the best deal with one of our partners.

(100% free consultation – not affecting you credit score)

or call us now

1300 911 621

Secured business loan: repayment terms

At Lending Connect, we work with over 50 lenders. Even though the secured business loan is defined as a longer-term loan by nature than an unsecured business loan, our partners can offer secured business loans to up to 15 years, and it is possible to negotiate the repayments amount and terms. A secured business loan usually has longer repayment terms than unsecured business loans.

Secured business loan: benefits

Secured business loans are one of the preferred financial solutions because the interest rate is relatively low, and it allows a business to schedule repayments for an extended period. We have many partners that offers this type of credit. They usually take a low risk because the loan, as the name says, is secured against an asset, which means that in case of failure of repayment, the lender can claim against the collateral that the loan is secured against. Despite the more favourable conditions, many Australian businesses are not willing to provide collateral, and therefore they often choose an unsecured business loan.

(100% free consultation – not affecting you credit score)

or call us now

1300 911 621

Secured business loan: other benefits

Low-interest rates: this is one of the main benefits when taking a secure business loan. The asset given as a security allows the lender to provide a lower interest rate because the risk is limited.
Fast and simple application process: as long as the borrower can provide any security, the application process is pretty quick.
Higher loan amounts: as the risk taken by the lender is low; the lender is willing to offer more money to be borrowed.
Long term repayments
Quick access to the funds – usually within 1 day

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

Partnering with over 50+ business loan providers at Lending Connect, we unlock credit opportunities for your business. Our clients in 99% of the cases get the money in their bank account within 24 hours from the application.

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:

01

Details on any income the asset generates

02

Copies of all sales & transfer documents to prove ownership

03

Details on any existing claims over the asset

04

Details of any registered valuation that has been completed on the asset

05

Details of any insurance policies taken out on the asset

(100% free consultation – not affecting you credit score)

or call us now

1300 911 621

Secured business loans

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