A secured loan is a loan in which the borrower needs to provide assets as security or collateral to the lender, in case the loan cannot be repaid. Often, a secured loan is a large sum of money that you borrow against an asset you own, such as your home.
A secured loan is often seen as a riskier option for borrowers, so it is important to do your research beforehand and to ensure that the finance provider you borrow from explains everything you need to know.
Nucleus Commercial Finance offer secured business loans to SME’s to help them thrive and reach their growth potential. Secured loans can be a good choice for businesses as the interest rates tend to be cheaper, as it is less risky for lenders when compared with unsecured loans.
Secured loans can offer businesses the help they need, especially if they have been denied an unsecured loan or their business is at an early stage. Secured loans do come with their advantages, often lower rates of interest, with the added benefit of helping to build a borrower’s credit score.