Lendus.

Secured business loans

What is a secured business loan?

A secured business loan is backed by a specific asset the lender can claim if the loan is not repaid, most often commercial property, but sometimes equipment, stock or a debenture over the business. Because the lender's risk is reduced, secured loans are the cheapest form of business borrowing and allow the largest facilities and longest terms. The trade-off is time: a valuation and legal work are needed, so secured lending takes weeks rather than days.

Updated . Lendus is an introducer, not a lender.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

How it works

  1. 01 The business identifies an asset to offer as security, typically commercial property, but also equipment, stock or a debenture, which is a general charge over the company's assets.
  2. 02 The lender instructs a formal valuation of the asset and reviews the business's accounts and cash flow to confirm the loan is affordable, not simply secured.
  3. 03 Solicitors handle the legal charge, registering it against the asset or, for a debenture, at Companies House, which is usually the slowest part of the process.
  4. 04 Once the charge is registered, funds are released and repaid on the agreed schedule, with the charge remaining in place until the loan is cleared in full.

What lenders typically look for

What to watch for

The security is the whole point of the lower rate, but it means the lender's remedy for non-payment is not just chasing a debt, it is enforcing against the charged asset itself. On a defaulted secured loan a commercial property can ultimately be repossessed and sold, and a debenture lets the lender appoint an administrator over the whole company. Before charging an asset, weigh what happens if trading dips for a few months, not just the headline rate.

Lenders on our panel

Lender Facility size Published rate Minimum trading
Aldermore Bank £2k–£10m 4.5%–20% 12+ months for most products
Allica Bank £25k–£15m 9.90%–13.75% 3+ years of filed accounts for unsecured business loans; 2+ years of financial accounts for commercial mortgages
Bibby Financial Services £50k–£15m 1%–3% 6+ months preferred; startups with strong order books considered
Bizcap £10k–£500k 1.5%–5% At least 4 months
Capify £4k–£500k 1.1–1.5 4+ months for merchant cash advance; 6+ months for business loan
Capital on Tap £1k–£250k 1.25%–3% 12+ months
Close Brothers £10k–£5m 5%–18% 24+ months
Cynergy Business Finance £200k–£40m Not published Not publicly stated by Cynergy Business Finance. Eligibility appears to be assessed on the strength of the underlying receivables, stock, property or other assets on a per-business basis rather than against a published minimum years-trading threshold.
Fleximize £5k–£500k 0.9%–3.9% 6+ months
Funding Circle £10k–£500k 6.9%–36% 1+ year
Investec £5k–£100m Not published Not publicly stated. Investec assesses each business individually rather than publishing a minimum trading history requirement.
iwoca £1k–£500k 2%–6% 3+ months
Kriya £50k–£1m Not published Minimum 12 months trading with at least one set of financial accounts filed for invoice finance and working capital loans. Kriya's PayLater product has a lower minimum of 3 months trading.
LendingCrowd £25k–£500k 6%–18% 24+ months
Nucleus Commercial Finance £3k–£2m 1.5%–5% 6+ months
OakNorth Bank Not published Not published No fixed minimum published; trading history is one of several factors assessed case-by-case
Paragon Bank £5k–£1m Not published Not publicly stated; assessed as part of underwriting.
Shawbrook Bank £50k–£25m 0.55%–1.25% 12+ months preferred; none required for property-backed bridging
Start Up Loans £1k–£25k 7.5%–7.5% For start-ups: no trading history required. For existing businesses: must have been trading less than 60 months
ThinCats £1m–£30m Not published Not stated as a fixed minimum number of years; ThinCats lends to established mid-sized SMEs rather than start-ups or very early-stage businesses.
Tide £1k–£500k 7.9%–49.9% 12+ months for credit products; account available from day one
White Oak UK £5k–£500k Not published Not publicly stated; assessed as part of underwriting.

As published by each lender and dated on its own page. Indicative, not offers.

Free toolBusiness loan calculatorHow much will a business loan cost per month?
Open calculator →

Frequently asked questions

What can be used as security for a business loan?
Commercial property is the most common security and usually attracts the best rates, but lenders also accept equipment, vehicles, stock and, less directly, a debenture, which is a general charge over all the company's assets rather than one named item. The stronger and more liquid the asset, meaning the easier it would be to sell if needed, the better the rate typically on offer. Residential property owned personally by a director can sometimes be used too, though that blurs into a personal guarantee and adds risk to the director rather than just the company.
Why is a secured business loan cheaper than an unsecured one?
Price reflects risk. When a specific asset is charged, the lender has a clear route to recovering its money if the business cannot repay, so it prices the loan more cheaply than lending that relies purely on the business's promise to pay. That is why secured facilities generally carry noticeably lower rates than unsecured borrowing of the same size, and why they can also support larger loan amounts and longer terms. The cost of that cheaper rate is not financial, it is time: valuing the asset and completing the legal charge over it takes weeks rather than the days an unsecured decision might take.
How long does a secured business loan take to arrange?
Expect weeks rather than days. Once security is offered, the lender needs a formal valuation of the asset, a review of the business's accounts, and a solicitor to draw up and register the legal charge, whether that is a charge over property or a debenture registered at Companies House. Each step takes time and cannot be meaningfully rushed, since the lender is relying on the charge being properly in place before it releases funds. Businesses that need money quickly and can accept a higher rate are often better served by an unsecured facility instead.
What happens if I cannot repay a secured business loan?
The lender can enforce against whatever was charged. For a loan secured on commercial property, that can ultimately mean repossession and sale of the property to recover the debt. For a debenture, a general charge over the company's assets, a lender can appoint an administrator or receiver over the business itself. Lenders do not usually move to enforcement immediately; missed payments typically trigger contact first and a chance to agree a revised repayment plan. But the charge exists precisely so the lender has that option, and it is the central risk to weigh against the lower rate before offering an asset as security.
Check Eligibility, 2 min, no credit check