Why should you choose a secured loan over an unsecured loan? Many providers offer the choice of secured and unsecured, but their loan charges and rates are usually more favourable on the secured loans as they have greater guarantees that they will receive the funding back.
If your business has the assets to provide the security needed for a secured loan, then it might be a better solution as you will end up paying less for the loan. Below we have examined what some of the leading loan providers can offer as a secured loan.
The table below gives a quick comparison of the top UK providers for secured business loans.
| Company | Minimum loan amount | Maximum loan amount |
|---|---|---|
| HSBC | £1,000 | £25,000 |
| Lloyds Bank | £1,000 | £500,000 |
| TSB | £1,000 | £1 million |
| Metro Bank | Not stated | £25 million |
| Bank of Scotland | £1,000 | Not stated |
| Cooperative Bank | £25,020 | £250,000 |
| Aspire Business Loans | £5,000 | £300,000 |
| Catalyst Finance | £25,000 | £1 million |
| Fleximize | £5,000 | £500,000+ |
| Nucleus Commercial Finance | £25,000 | £20 million |
| rebuildingsociety com | £25,000 | Not stated |
| Sancus | £500,000 | £6 million |
| CrowdProperty | £100,000 | £5 million+ |
| Folk 2 Folk | £50,000 | Not stated |
| ThinCats | £250,000 | £15 million |
| ArchOver | £250,000 | Not stated |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another.
Topics
1. HSBC
Some of the features and benefits of HSBC’s secured business loans.
- Small business loan
- Security or personal guarantee required
- Terms from 1 to 12 years
- Loans from £1,000 to £25,000
- Fixed interest rates
- Can make additional payments at no cost
- Option to take a repayment holiday
- Monitor your loan through your internet banking account
- Apply online, over the phone or in branch
- Don’t need to be an HSBC customer
HSBC is an international financial provider offering a variety of business finance products which include loans, credit cards and business overdrafts. They offer a small business loan which provides funding on a secured basis only either through an asset such as property or a personal guarantee.
HSBC’s small business loans offer funding from £1,000 to £25,000 for terms from 1 to 12 years on a fixed interest rate. This loan allows businesses to make additional payments to lower the loan amount without occurring a charge and they also offer repayment holidays. You can apply for a business loan from them online, over the phone or in branch.
2. Lloyds Bank
Some of the features and benefits of Lloyds Bank’s secured business loans.
- Choice of secured loans
- Borrow from £1,000 to £500,000
- Terms from 1 to 25 years
- Option of secured or unsecured
- Offer fixed and variable rate loans
- Their range includes small to large value loans
- No arrangements fees if loans are below £25,000
- No early repayment fees
- Capital repayment holidays may be available
- Suitable for new and existing customers
Lloyds Bank offers a range of business finance products including loans, overdrafts, credit cards, commercial mortgages, invoice and asset finance. They offer three business loan products that can be a secured or unsecured loan.
Lloyds Bank’s Base Rate Loan is a variable rate loan for over £1,000 on terms of 1 to 25 years. The Fixed Rate Loan gives security of fixed monthly repayments on loans of £1,000 to £50,000 over 1 to 10 years. Both loans have no arrangement fees below £25,000 and they have no early repayment fees. The Commercial Fixed Rate loan is for £50,001 to £500,000 over 1 to 25 years and offers repayment holidays.
3. TSB
Some of the features and benefits of TSB’s secured business loans.
- Fixed Rate Loan
- Available as secured or unsecured
- Loans from £1,000 to £1 million
- Terms from 1 to 10 years
- Fixed monthly repayments
- Capital repayment holidays may be available
- Arrangement fees apply
- Early repayment fees apply
- Suitable for sole traders, partnerships and limited companies
- Available to new and existing customers
TSB is a financial provider that offers business finance products such as loans, credit cards, overdrafts and commercial mortgages. They offer one loan that is on a secured or unsecured basis which is called the Fixed Rate Loan.
TSB’s Fixed Rate Loan has fixed monthly repayment amounts and is available for loans from £1,000 to £1 million over 1 to 10 years. The loan can offer capital repayment holidays if approved. They charge an arrangement fee and early repayment fees apply. The loan is available to new and existing customers who are sole traders, partnerships or limited companies.
4. Metro Bank
Some of the features and benefits of Metro Bank’s secured business loans.
- Two business loans
- All loans may require security
- Simple and quick loans
- Loans can be tailored
- Borrow up to £25 million
- Terms from 1 year
- Fixed and variable loans available
- Arrangement fees apply over £25,000
- Can only apply in branch
- Branches are open 7 days a week
Metro Bank is a high street bank with a difference as they have stores that are open 7 days a week 8am- 8pm. You don’t need an appointment and you can leave the branch with a working account and debit card. Their products include loans, credit cards, overdrafts, invoice finance, asset finance and buy-to-let mortgages.
Metro Bank offers two business loans, the first split into loans under or above £25,000 which are available for 1 to 5 years and offer no arrangement fees below £25,000. They also offer commercial loans for £25,000 to £25 million on terms from 1 to 30 years which can be tailored to your needs.
5. Bank of Scotland
Some of the features and benefits of the Bank of Scotland’s secured business loans.
- Choice of business loans
- Offered as secured or unsecured
- Borrow from £1,000 upwards
- Terms from 1 to 25 years
- Offer both fixed and variable rate loans
- Arrangement fees apply on loans over £25,000
- Capital repayment holiday may be offered
- Early repayment costs waivered on some loans
- Can apply online or over the phone
- Offered to new and existing customers
Bank of Scotland is part of the Lloyds Banking Group and they offer business finance products including loans, credit cards, overdrafts, mortgages and asset finance. They offer three loans which can be on either a secured or unsecured basis.
Bank of Scotland offers a Base Rate Loan from £1,000 for 1 to 25 years on a variable rate. Their Fixed Rate Loans are for £1,000 to £50,000 over periods of 1 to 10 years with fixed monthly repayments. These have no arrangement fees if under £25,000 and no early repayment fees. Their Commercial Fixed Rate Loans are for over £50,001 over 1 to 25 years and offer capital repayment holidays.
6. Cooperative Bank
Some of the features and benefits of Cooperative Bank’s secured business loans.
- Variable Rate Loan
- Offered as a secured loan only
- Borrow from £25,020 and £250,000
- Terms from 1 to 25 years
- Flexible payment terms
- Repayment amounts will vary
- Arrangement fees apply
- Maximum 70% loan to value on asset purchases
- Decisions made within 7 business days
- Not available for residential property development
Cooperative Bank is an ethically minded in their business dealings and lending criteria. They provide a range of business finance products including loans, business charge cards and overdrafts. They offer only one loan, Variable Rate Loans, which is available as a secured loan only.
Cooperative Bank’s Variable Rate Loans offers loans from £25,020 to £250,000 over periods from 1 to 25 years. This loan product is flexible and offers repayment terms to suit your business. Their loans occur an arrangement fee and a decision will normally be made within 7 working days. If you are purchasing an asset, then the loan will be limited to 70% of the asset value.
7. Aspire Business Loans
Some of the features and benefits of Aspire Business Loans’ secured business loans.
- Loans offered as secured or unsecured
- Loans from £5,000 to £300,00
- Terms from 1 to 5 years
- Quick and simple loans
- Allows you to compare funding solutions
- Instant quotes
- Provides a range of funding options
- Won’t impact your credit rating
- Available for most loan reasons
- Offered to most businesses trading for over 1 year
Aspire Business Loans are part of Aspire Money Limited and they offer a range of business finance products. They offer secured loans, unsecured loans, invoice financing, pay as you trade loans and debt refinancing. They offer loans to businesses that have been operating for over a year.
Aspire Business Loans work differently as they compare loans from different funders. They offer both secured and unsecured business loans with loan values of £5,000 to £300,000 over periods of 1 to 5 years. Their loans are designed to be quick and simple with instant quotes and being able to compare loans.
8. Catalyst Finance
Some of the features and benefits of Catalyst Finance’s secured business loans.
- Commercial Business Loan
- Security is needed in the form of debentures and personal guarantees
- Borrow from £25,000 to £1 million
- Terms from 3 to 12 months
- Fixed interest rates
- Flexible product
- Transparent loan terms
- Designed to work with other finance products
- Available to a variety of business types and loan reasons
- To be eligible you need to have been trading for over 2 years
Catalyst Finance is short-term finance provider that offers business finance products to businesses that have been operating for over 2 years. They provide a range of finance products including commercial loans, asset secured loans, selective invoice finance, VAT and cash flow loans.
Catalyst Finance’s Commercial Business Loans require security such as debentures and personal guarantees. They offer loans from £25,000 to £1 million on terms from 3 to 12 months on a flexible basis. The loan is transparent and has fixed interest rate fees which mean you will have fixed monthly repayments. It can also be used alongside other finance products.
9. Fleximize
Some of the features and benefits of Fleximize’s secured business loans.
- Loans designed for SME
- Borrow from £5,000 to £500,000+
- Lending periods from 1 to 48 months
- Option of secured and unsecured loans
- Flexible product
- No hidden fees
- Receive a fast decision
- Can repay the loan early and reduce the fees
- Relationship manager to support you
- Highly rated on Trustpilot
Fleximize is a financial provider that offers loans to businesses that are small to medium-sized to help them grow and develop. They have designed their loans to be fair and you only pay the time you have the loan as they allow you to repay the loan early and they will reduce the amount of interest they charge.
Fleximize’s business loans provide loans for short periods from 1 to 48 months for amounts from £5,000 to over £500,000. Their loans are designed to give you flexibility from early repayment, top-up facility and repayment holidays to help businesses to manage fluctuating cash flow.
10. Nucleus Commercial Finance
Some of the features and benefits of Nucleus Commercial Finance’s secured business loans.
- Property Finance
- Secured against a property
- Can use commercial or residential properties as collateral
- Loans from £25,000 to £20 million
- Terms up to 7 years
- Competitive rates
- Available for a wide range of loan reasons
- Will consider those with adverse credit
- Can use your residential property as collateral
- Suitable for start-up capital
Nucleus Commercial Finance is a financial provider that offers a variety of different business finance products that meets a range of business needs. Their lending products include Property Finance, Cash Flow Finance, Business Cash Advanced, Invoice Finance and Asset-Based Lending. Of these loans, Property Finance is a secured loan.
Nucleus Commercial Finance’s Property Finance offers secured loans for those that can provide security in the form of either residential or commercial assets, and you provide a personal residential asset if the business has insufficient assets. Loans are from £25,000 to £20 million for periods up to 7 years.
Nucleus Commercial Finance website
11. rebuildingsociety.com
Some of the features and benefits of rebuildingsociety.com’s secured business loans.
- Community-based lending provider
- Option of secured or unsecured loans
- Terms of 6 to 60 months
- Loans from £25,000
- No hidden costs
- No early repayment fees
- Generates online quotes
- Simple application form
- Decision can be received within 24 hours
- Ethically minded
rebuildingsociety.com is a peer-to-peer lending provider that operates on a platform that brings together investors and borrowers in one place. They claim to be ethically minded and that they attract ethically minded investors to work with them. They offer loans as either a secured or unsecured loan.
rebuildingsociety.com’s business loans are available to small to medium-sized businesses who are based in the UK. Their loans are available for amounts over £25,000 on terms from 6 to 60 months for a variety of loan reasons. They offer transparent loans with no hidden fees or early repayment costs and loans are turned around quickly.
12. Sancus
Some of the features and benefits of Sancus’ secured business loans.
- Straightforward business loans
- Offers secured loans only
- Loans from £500,000 to £6 million
- Terms from a few days to 5 years
- Fixed interest rates
- Flexible product
- Brings together borrowers with lenders
- Working capital loans only
- Offers a choice of loan solutions
- Available to profitable UK businesses
Sancus is a finance provider who offers a financial solution where they bring together investors’ funding by offering them above current interest rates and lending solutions for borrowers. They offer their straightforward loans to UK based small to medium-sized businesses that are profitable. They specialise in loans for organisations, property developers and entrepreneurs.
Sancus’ business loans provide secure loans for amounts from £500,000 to £6 million on terms from just a few days up to 5 years. Their loan is a flexible product that offers working capital loans with fixed interest rates. They offer secure cash flow funding, asset-backed loans, bridging and development finance and education finance.
13. CrowdProperty
Some of the features and benefits of CrowdProperty’s secured business loans.
- Property finance loans
- Borrow from £100,000 to £5 million+
- Short to medium term funding
- Loans up to 100% of the asset value
- Transparent loans
- No hidden fees
- Quick and simple loans
- Receive an initial decision within 24 hours
- They make drawdowns easy and fast
- Provide access to their loan experts
CrowdProperty is a financial provider who specialises in offering property finance to developers and property professionals. Their business model is similar to crowdfunding and they attract investors by offering them the opportunity to receive above-inflation interest levels.
CrowdProperty’s loans offer £100,000 to over £5 million on short to medium term loan periods and they will provide up to 100% of the loan value of the project. They offer transparent and fair loans that have no hidden charges or fees. Their loan process is short and simple, and they provide an initial loan decision within 24 hours and they provide quick drawdown facilities.
14. Folk 2 Folk
Some of the features and benefits of Folk 2 Folk’s secured business loans.
- Peer-to-peer lending solution
- Offers secured loans only
- Borrow from £50,000
- Loan periods from 6 months to 5 years
- Interest rates that start at 0.38%
- Provide the option of interest only repayments
- Straightforward and transparent loans
- Aim to deliver stress-free loan process
- Provide funding within weeks
- Loans available for a range of loan purposes
Folk 2 Folk is a peer-to-peer finance provider that provides a platform to bring together local investors wanting to make money from investing in local businesses. They provide loans to businesses to help them grow and develop and will lend funding to you for a variety of reasons.
Folk 2 Folk’s business loans offer loans that have a minimum interest rate of 0.38% that they claim offers a stress-free loan process as their loans are straightforward and transparent. Loans are available from £50,000 on terms from 6 months to 5 years. They also offer interest-only repayments in some circumstances.
15. ThinCats
Some of the features and benefits of ThinCats’ secured business loans.
- Bespoke business loans
- Secure loans only
- Borrow from £250,000 to £15 million
- Terms from 6 months to 5 years
- Available as working capital loans
- Arrangement fees apply
- Claim to offer a personalised approach to lending
- Will listen to your business needs
- Provide funding for a variety of reasons
- Offered to businesses that have been established for 2 years
ThinCats is a financial provider who specialises in assisting businesses who require finance by finding funding for them from institutional and retail investors. They offer a bespoke loan service as they tailor their loans to meet your business’ needs.
ThinCats’s business loans are offered to UK businesses that have been trading for a minimum of 2 years. They offer secure loans for £250,000 to £15 million on terms from 6 months to 5 years. Their loans are available for working capital, growth, acquisition, refinancing and asset purchases. They claim to offer a personalised approach to business lending as they listen to your needs and tailor their loans to you.
16. ArchOver
Some of the features and benefits of ArchOver’s secured business loans.
- Peer-to-peer lending provider
- Offer both secure and unsecured loans
- Borrow from £250,000
- Terms from 3 to 36 months
- Fixed-rate loans
- Transparent loans
- No hidden fees
- No early repayment fees
- No personal guarantees required
- Offered to established businesses only
ArchOver is a peer-to-peer lending provider that specialises in offering loan solutions to businesses. They provide a platform to allow investors to fund business opportunities and receive favourable returns for their investment. They claim to offer a personalised service to their borrowers as they listen to them and understand their needs.
ArchOver’s peer-to-peer loans are available to established businesses only for amounts over £250,000 for terms of 3 to 36 months as either a secured or unsecured loan. Their loans are transparent as they have no hidden fees or early repayment charges and they don’t require any personal guarantees.
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