Secured Business Loans

A secured loan (sometimes referred to as a homeowner loan) is a loan secured by property, so you need to own your own property or hold a mortgage to be eligible.

Secured loans can be used for many different purposes, including home improvements, debt consolidation or to buy a new car.

Once the second charge mortgage is agreed, the money will be paid into your bank account and it’s yours to spend.

You’ll then start making your lower monthly payment to the lender until it’s paid off.

A secured loan may enable you to access the cash that is tied up in the value of your home without needing to re-mortgage or extend the term of your current mortgage deal.

If you’ve got good credit, a secured loan should be cheaper compared to an unsecured loan.

If you’ve got bad credit, you’re more likely to be accepted for a secured personal loan because the lenders have your home as security.

You can usually borrow larger amounts of money, and spread the payments over a longer amount of time, compared to an unsecured loan.

To be eligible for secured lending you’ll usually need to be a homeowner. This is because the lender will secure the loan against the equity in your property.

In other words, it’s based on the difference between the current value of your property and the amount you owe on your mortgage. So, if you have little or no equity in your home, you may not be eligible for a secured business loan.

The amount you can borrow will depend on how much equity you have in your property, how much you can afford to repay each month and your credit rating.

Yes, you can apply for a secured loan with poor credit. In fact, a secured loan may be easier to get hold of than other types of loan if you have a bad credit rating.

And, if you keep up with the repayments on a secured loan, you can actually repair your credit rating over time.

Yes, you can. In fact, secured lending may be easier to obtain than other types of loan if you are self-employed.

No, getting a quote will not impact your credit score.

Whatever type of loan you’re looking for, or whatever part of the loan process you’re at, a broker can help. It’s not just about finding the lowest interest rate — there are other things to consider. For example, if you’re thinking about starting a family, flexibility is an important feature. Or if you want to renovate, easy access to equity can help. With so many products, you have so many choices. Once we agree on the right secured loan for you, we take care of the application and get everything in place for the approval process, then see it through to completion. We do the hard work for you.

A secured loan (sometimes referred to as a collateral loan) is a loan whereby the  lender will take a physical asset as collateral, which means that the borrower could sell the asset to pay for the loan, should they need. Secured debt is relatively easier for the business to receive as it is lower risk than an unsecured loan.

The assets required to secure the loan against include business premises, machinery, stock or sometimes the loan might be secured on a personal asset such as property.

An unsecured loan has no security but is based on the borrower’s credit history, trading history as well as the personal guarantee (PGs).

Find out more about personal guarantees.

Find out more about the differences between secured and unsecured business loans. 

Yes, second charge mortgages/secured loans are regulated by the Financial Conduct Authority (FCA) so you should always make sure that you are working with an FCA approved broker. Newable Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (FRN 723703).