​What is a Secured Business Loan?

When it comes to funding the expansion plans of your growing business these days, thankfully there are lots of ways to do so. Whilst the bank used to be the only viable option a business had, alternative finance is growing in popularity. So much so, according to BBA, total applications for bank finance were 9% lower than usual in 2016 as businesses decided to explore alternative options.

Getting a business loan to get things started is always a good option to consider but not all loans are suitable for your needs. Seeing as there are numerous types of financial credit available, it is best to do your research beforehand to ensure that you chose finance that fits your business.

What’s the difference between secured or unsecured?

Although both loans are paid back in monthly instalments alongside a business loan rate, with a secured business loan, the loan is secured against an asset in order to protect the lender should there be any problems with paying the loan back. This security usually comes in the form of valuable asset.

These types of loans can really help a thriving business that has ambitious plans to expand, just like the director of a nursery we worked with did.

Quick And Efficient

At Nucleus, we used to offer a range of Property Finance options designed to support the unique needs of growing SMEs. Depending on the financial product required, we were able to provide business loans up to £2 million. Our Property Finance solutions included secured business loans with various terms, such as interest-only options, bridging loans, and term loans for durations up to seven years. As is common with many secured loans, our offerings were subject to credit and property checks, and applicants needed to have equity in the property they intended to use as security.

Currently, we provide unsecured loan options like Nucleus Business Loans and Revenue-Based Loans, designed to give businesses the financial flexibility they need without the requirement for property equity. These solutions offer a streamlined approach to financing, tailored to the operational and cash flow needs of SMEs. Eager to dive deeper? Check out our Finance Glossary – It’s your go-to resource for demystifying even more financial terms.