Secured business loans

Larger amounts and longer terms, with the loan secured against property or other assets.

Free to use, no obligation
£5,000 to £2m+ for UK limited companies and LLPs
Matched to a broker who arranges secured business loans

Get a quote

Calculate repayments

Free to useNo fees for businesses, ever

About a minuteOne short form, plain English

Specialist brokersMatched to your type of finance

Your data protectedOnly shared with your consent

What secured business loans are

A secured business loan is backed by an asset, most often property, though some lenders accept other valuable assets. Because the lender has security to fall back on, secured loans can open up larger amounts and longer terms than unsecured borrowing, and may come at a lower cost. The amount available usually depends on the value of the security and how much is already borrowed against it, as well as the company’s ability to repay.

Secured finance often suits established companies planning a significant investment, such as an acquisition, a major expansion or bringing several existing debts into one. It can also help businesses whose trading figures alone would not support the amount they need. The trade-off is risk: if repayments are not made, the lender can take steps to recover its money from the asset, so it pays to borrow carefully and understand the terms.

What businesses use it for

Major expansion

Pay for a significant step such as a new site, a larger workshop or entry into a new market, where the amount needed is beyond what unsecured lenders typically offer.

Buying a business

Help finance the acquisition of a competitor, supplier or complementary business, often alongside your own contribution and other sources of finance.

Consolidating debt

Replace several existing loans or facilities with a single secured loan, which can simplify repayments and in some cases reduce the overall monthly cost.

Releasing equity

Raise money against property the business already owns, putting value that is tied up in bricks and mortar to work in the company.

How it works

1The security is assessed

The lender looks at the asset being offered, usually arranging a professional valuation for property. They check how much is already owed against it and how much they are prepared to lend as a proportion of its value.

2Your company is assessed

Alongside the security, lenders review accounts, bank statements, credit history and affordability. A broker helps present this information clearly and approaches lenders whose criteria suit your situation.

3Legal work and completion

Once an offer is accepted, solicitors complete the legal work, which may include registering a charge over the property or a debenture over company assets. The money is released when this is done, so allow time for it.

What lenders look at

Every lender has its own criteria, but these are the things they usually check.

Value and type of the security offered

Existing borrowing secured on the asset

Company accounts and trading history

Credit history of the business and its directors

Ability to afford repayments over the term

To use Loanleaf

UK limited company or LLP
Trading for 6 months or more
Annual revenue of £50,000+
Borrowing £5,000 or more

Check your options

Things to consider

Risk to the asset

If the company cannot keep up repayments, the lender can take action against the security, which may include repossessing property. Only offer assets you are prepared to put at risk, and take independent advice if the security is your home.

Upfront costs

Secured loans often involve valuation fees, legal fees for both sides and arrangement fees. These can add noticeably to the total cost, so ask for a full breakdown and factor it into your decision alongside the interest rate.

Time to complete

Valuations and legal work mean secured loans usually take longer to arrange than unsecured ones. If you have a deadline, such as an auction or an acquisition date, tell the broker early so they can plan around it.

Secured business loans: questions and answers

What can be used as security?

Property is the most common form of security, including commercial premises and, in some cases, other property owned by the business or its directors. Some lenders also take a debenture, which gives them a charge over the company’s assets more generally.

Can I get a secured loan if the property already has a mortgage?

Often, yes. Some lenders offer second charge loans that sit behind an existing mortgage. How much you can borrow depends on the property’s value and the amount already secured against it. Your existing lender may need to give consent.

Are secured loans cheaper than unsecured loans?

They can be, because the security reduces the lender’s risk. However, valuation, legal and arrangement fees add to the cost, so for smaller amounts an unsecured loan may work out similar overall. Comparing the total cost is the clearest guide.

How long does a secured loan take to arrange?

Usually longer than an unsecured loan, because of the valuation and legal work. A straightforward case may take a few weeks, while more complex cases can take longer. Providing documents promptly helps keep things moving.

Will I still need a personal guarantee?

Possibly. Some lenders ask for a personal guarantee from the directors as well as security over the asset. A broker can explain what each lender is likely to require before you apply, so there are no surprises later.

How can Loanleaf help?

Loanleaf is an introduction service, not a lender or broker, and we don’t give advice. You answer one short form about your company and what you need, and we match you with a specialist finance broker who works with secured business loans. It’s free to use and there’s no obligation to go ahead. The broker will explain any fees of their own.

Ready to compare your options?

One short form. A specialist broker calls you.

Get a quote

Related finance

Unsecured business loans

Borrow a fixed sum without putting up property or equipment as security, repaid in regular instalments.

Learn more Commercial mortgages

Long-term finance to buy, refinance or release equity from business premises or investment property.

Learn more Bridging loans

Short-term finance secured on property, bridging a gap until a sale, refinance or other money comes in.

Learn more