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What are Secured Business Loans?

Companies, irrespective of small, medium or large scales, have to look upon the funding options to support or grow their capitals. Therefore, business loans are in massive demand as personal loans.

Secured business loans in the UK fulfil the significant business funding gap for the companies. As compared to the unsecured business loans, these loans satisfy both the lender and the borrower considering the borrower's pledged business assets.

The lender can take the possession of the assets if the borrower defaults on the loan repayments. On the other hand, the borrower can feel secure in getting the loan approval as they have secured the borrowed amount.

The secured business loans can be used for multiple purposes, such as:-

  • Purchasing machinery vehicless

  • Expanding business

  • Hiring training staff

  • Paying wages

  • Purchasing equipments

  • Buying raw materials

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What are the benefits of secured loan for small businesses?

Secured business loans help the companies grow their capital, make a strategy for further development, and maintain significant cash flow. With having a more considerable loan amount, they can do all-round development of their businesses.

Given below are the benefits of secured start-up business loans:-

  • No Need for Personal Guarantee

    You have already secured the loan amount with the business assets. There is no need to sign the agreement for the personal guarantee. It does not make any impact on the interest rates too.

  • Low Risk for the Lender

    With the borrowers' pledged asset, the lender has a low risk of losing its funds if they default. In such a situation, the lender can own that collateral and compensate the repayment.

  • More Chances of Guaranteed Loan Approval

    Do you need a larger loan amount to strategise your business capital? Approach the direct lender for secured loans for business and gain maximum loan approval compared to the unsecured loans.

  • Little Impact of Credit History

    Pledging assets bring another benefit of getting approval on secured business loans for bad credit. The credit score makes little impact despite the mandatory credit check done by the lender.

  • Lower Interest Rates

    Secured loans always have the advantages of lower interest rates for the borrowers than the unsecured loans. The fascinating part is that lower interest rates in secured loans apply to personal and business loans.

What are the types of secured business loans?

Funding options are many for small businesses. The UK marketplace is vast, and thus several deals are offered to the aspirants. However, it depends upon the companies which sort of secured loan they prefer according to their business plans. They can use the secured business loan calculator to analyse first and then opt for a lending deal.

  • Commercial Mortgage: These are one category of secured funding where the companies can apply for the mortgage with adequate down payment and pledged assets.

  • Asset Backed Finance: The companies should back up this type of secured loans if they want sufficient funding support.

  • Secured Business Bank Loans:These loans come from the traditional lending institutions where the process takes time to complete but borrowers have more chances of genuine loan deals.


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How Can I approve my Company for secured business loan?

It is good that you have chosen your loan deal. Now, efforts should be on approving your company for secured loans for business. There are multiple ways to do that, but remember, we approve loans on your affordability only. The criteria to approve your company for these loans are:

  • Personal Assets

    You can pledge your personal assets and let the lender offer you a risk-free borrowing option. It is risk-free for the lender as well. Suppose if you miss the repayments or default, the lender takes possession of your personal asset to cover up the missing repayment.

  • Registered Company

    Your company should be registered in England and must be holding the status of a limited company, sole trader, or LLP with a one-year business account. It will add more trust factor into your loan application and thus creates the chances of guaranteed approval.

  • Residential Property

    To ensure no risk for the lender, you can apply for business loans secured against property. However, most lenders do not accept this as they are more in favour of business assets. We open up this opportunity and offer significant funding after accepting your real estate property as the loan collateral.

  • Regularly Examined Credit Score

    You can regularly check your credit score through the agencies to maintain a good credit. If you do not know what your credit score is, then how will you improve it to grow more chances of loan approval? Moreover, you can keep your credit score secret because you have examined it, not the lender.

  • Your Business Plan

    Do not hesitate to share your business plan for future growth with us so that we can frame the loan terms according to your comfort. It will help you get the loan according to your needs and capacity to repay until the loan ends.

Does 24cashfinances Offer Secured Business Loans for Bad Credit?

The loan process often finds the credit score of the borrowers as crucial as other criteria. Traditional lenders, which offer secured loans or non-secured business loans, want to take notice of applicants’ credit scores. If the scores are good, then approval is there without making too many efforts. A poor credit score often creates trouble during the loan process.

24cashfinances, as a responsible direct lender of business loans in the UK, follows a more modern approach while approving the loan application. We offer secured business loans for people with bad credit on affordable deals, including competitive APRs and flexible repayment options.

Here are the benefits that you get with these loan offers:-

  • No Hard Credit Check

    The numbers are increasing rapidly for those businesses that hold bad credit scores. They struggle to get loan approval from the traditional institutions but not from us. We follow the soft credit check policy to ensure loans for everyone and according to one’s affordability.

  •  Online Loan Procedure Makes things Faster

    Secured small business loans for bad creditare available online, making things a lot comfortable for them. You can apply through online format or send us a text message. We instantly revert to your loan query with an obligation-free loan quote. Go through the quote and confirm it to get the funds within 24 hours.

  • Easy Monthly Instalments

    We follow the flexible lending policy and allow loans on easy monthly instalments. Since you have pledged the collateral against your loan, you have longer loan duration with comfortable monthly repayments. You can manage them from your business earning.

  • Improve Business Credit Scores

    Enhancing your business credit score is also possible as the repayments are manageable, and you have chosen the term. Make proper repayments until the loan term ends, and it will have a positive impact on your credit rating.

Is secured business finance different from a personal secured loan?

Like the mortgage, the basics of secured business loan are quite similar to the personal secured loan. In both the options, the borrowers are obliged to put collateral against the loan amount and they can fetch a larger amount for long-term financial goals.

Here are the similarities and dissimilarities between these two borrowing options:-

Secured Business Loans

  • The borrowing for business funding is done on the asset based
  • Collateral must be provided in the commercial form such as commercial property
  • Secured business loan rates are lower than usual due to the pledged collateral
  • Credit ratings of the business owners should be good but chances for bad credit are also available
  • Repayment terms are flexible, but loans on affordability are the priority

Secured Personal Loans

  • To avail the personal loans, collateral is mandatory
  • Borrowers can secure the borrowed amount via their vehicle, property or home
  • Here also, the interest rates will remain on the lower side
  • The personal secured loans are also accessible with both good credit and poor credit scores
  • Lenders do offer both the fixed and flexible repayment terms

At 24cashfinances, you get adequate funding to back your business plans and commercial success. Apply now for secured business loans and get the fund disbursal on the same day.

FAQs

What risks I have if I miss the repayments?

The primary risk that you have is losing the possession of the pledged asset. The best way to reduce its impact is to discuss with the lender early so that a proper arrangement can be made within the time limit

What are the alternatives to secured business loans?

If not the secured business loans, then you have other alternatives too to avail:
  • Business overdraft
  • Business line of credit
  • Unsecured business loan
  • Business credit cards

What is the eligibility criterion for a secured business start-up loan?

  • Businesses must be at least 6 months old
  • The business owner must be a homeowner also
  • Company should be registered in England and Wales

What documents are required to apply for secured business loans?

  • Last six months’ business account statements
  • Proofs of current business accounts
  • A well-presented business plans for future and possible cash flow

Why Choose 24cashfinances for Secured Business Loans?

We give you several reasons to choose us over any other direct lender in the UK or traditional lenders:-
  • Borrower-friendly approach
  • Fee-free advice
  • Flexible business lending norms
  • Fast Loan Process with only online steps