Secured Business Loans: Simple large scale borrowing
Cutting the cost of borrowing with Secured Business LoansSpeak to one of our experts020 4525 5312
Large scale borrowing
- Effective way to borrow larger sums
- £25,000 – No Maximum
- Terms up to 20 years
- Rates from 2% over base rate
- Funding secured on business or personal assets
- Adverse Credit – no problem
- Lower Monthly repayments
- Reduces impact on cashflow
- Funds for any legal purpose
- Flexible solutions
- Terms to suit your needs
- Early repayments without penalty
If you want to borrow a large sum of money, a secured loan could help you cut the cost
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If you want to borrow a large sum of money, from £50,000 or more, you will probably need a Secured loan. The good news is that a Secured loan can cut the cost of borrowing, and can help you borrow larger sums of money than other types of lending.
Secured loans are versatile and can be tailored to your business needs, with repayment terms to fit your turnover and budget. But they do mean a small additional risk to you and your business.
What is a ‘Secured’ Loan?
Like other types of lending, a secured business loan provides a cash lump sum, which you agree to pay back with interest, usually in monthly instalments.
They are ‘secured’ because to arrange them, the lender will require something as security in case you cannot pay the loan back. You give the lender a ‘charge’ over your security. This means they’ll have the legal authority to take the asset and sell it if you can’t make the agreed repayments.
If you don’t repay, the lender will have the right to take the asset you have used as security.
Secured loans are less risky for lenders, which is why they can have lower rates of interest than Unsecured business loans. But they mean more risk for you as a borrower because your loan provider can repossess your property if you do not keep up repayments.
How security works
Security may include a personal guarantee, security over whatever is being purchased with the loan or over assets in the business. Buildings, machine tools are often used, but it may also be possible to put your own home up as security.
You can only borrow an amount less than the value of the security you provide. So you can’t get a £200,000 loan with security worth £100,000. Loans are usually 50–70% of overall asset value.
The lender will look at your assets and make a valuation, which may involve a visit to your site to check the condition and potential saleability of your property. They’ll also want to see if the asset is ‘encumbered’. This means checking if there are any charges already on it.
The advantages of Secured Loans
Having security reduces the risk to the lender. This can allow them to offer a better deal than they might with unsecured lending.
You can have longer to repay, and enjoy lower interest rates, meaning monthly repayments can be lower and easier to fit in with your cashflow.
Lenders may prefer Secured loans for borrowers with an imperfect credit history.
Why you need Rangewell to arrange a Secured Loan
There are many secured lenders, ranging from high street banks and the new generation of challenger banks to specialist, niche and P2P providers. The rates and terms they offer can vary substantially depending on the 'security' being offered.
Some lenders tend to specialise in certain business sectors, where they have more experience of the risks and opportunities involved.
Finding the right business finance lender is essential to minimise the costs of borrowing. At Rangewell we work with lenders across the entire UK market, and can search every lending product to help you find the most appropriate lender and the most competitive deal.
We can also help you decide on the most suitable form of security to offer.
Why you should call us
When large sums of money and long financial commitments are involved, it pays to have expert support on your side.
Setting up a Secured loan is a major commitment, and it can mean a number of steps, including valuation.
Coming to Rangewell means getting our experts to help you with planning and arranging your loan, as well as finding the most suitable lenders.
We can discuss your objectives, and help find answers scaled to fit your turnover and your other obligations. When you call us, we can explain the options – and find you the solutions you need.
REAL EXAMPLES OF WHAT WE CAN DO
Find a lender to provide £50,000 for a company that had only been in business for three months
Source a £250,000 loan to build a new production line
Set up funding for a business in a Creditors Voluntary Agreement
Find a small company a loan at a rate 30% lower than it had previously been offered
Find a loan of £200,000 secured on property for a company in a turnaround
Discover our range of finances
Every type of finance for every type of business
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.
Helping you build your profits
Reducing the costBusiness lending is priced on risk. If a lender considers there is a risk that they will not be repaid they will charge a high rate of interest. Providing security reduces the risk, and so can reduce the rate you pay.
Borrow over a longer periodSecured lenders actually prefer loans to last longer to help offset hefty set-up costs. Terms from five to 20 years are common. Borrowing for longer does reduce your monthly repayment commitment.
Borrow for any purposeYou can borrow to launch your business, to invest in your business growth, to buy another business or virtually any other business purpose. At Rangewell we can help you find the right lender for your needs.
Secured loans may be easier to obtainSecured loans provide lenders with a means of reducing risk. This can make it easier for them to agree to loans, even for borrowers with poor credit scores.
Making large-scale funding affordableBy securing your loan on your assets, large-scale long-term lending can be made more affordable.
Specialist lendersSome lenders specialise in particular business sectors. At Rangewell, we can help you find the most appropriate lenders for your type of business.
Download Rangewell’s free and detailed guide to Secured Loans
How do Secured Loans work and what does it mean to use assets as security?
How do secured business loans differ from unsecured business loans?
What are the options available to you?
How can you apply?
Finance terms such as fixed rate, monthly repayments, credit rating and loan application explained
Paperwork you need to provide with your application
Can a secured loan help with business cash flow?
Will a loan provider want to see my business plan?
Does my credit history affect loan amounts or interest rates?
Why do I not have to provide a personal guarantee when I apply for this type of business finance?
Can Secured Finance be used as a start up loan?
What does it mean to offer assets as security?
What individual funding options are available to me with Secured Loans?
Do I have to have business banking, company number or a registered office in England to qualify for business finance?
Is the loan secured on business assets, commercial property or residential property?
Is it important to use a lender who is authorised and regulated by the financial conduct authority (FCA)?
Are business loans only suitable for limited companies?
How are the loan repayments structured in order to pay off the initial loan amount and interest?
What is a credit broker?
I have a credit card/personal loan/homeowner loan - will this affect my chances of being successful?
Will lenders check my business' credit score?
What if I have poor credit?
What interest rates am I likely to be subject to?
What important information/terms and conditions do I need to know about?
Are some types of secured finance secured on your home?
I'd rather have an unsecured loan but my credit rating is poor - what can I do?
Key terms to check