Larger amounts, lower rates
Secured Business Loans
A secured business loan is a loan backed by an asset, usually commercial or residential property, that the lender can sell if the loan isn't repaid. Because the lender's risk is lower, secured loans offer larger amounts, longer terms and lower rates than unsecured lending.
Funding Plus compares secured business loans from high-street banks and specialist lenders, including first and second charge options.
- Borrow from £25,000 to £5m+
- Terms up to 25 years
- Lower rates than unsecured loans
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Secured Business Loans
How much do you need?
Takes about a minute. No impact on your credit score.
Secured Business Loans at a Glance
- Amounts
- £25k – £5m+
- Terms
- 1 – 25 years
- Decision
- 2 – 6 weeks
- Security
- Property or assets
- Best for
- Large investments
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Secured Business Loans Work
- 1Tell us about the securityWhat you can offer, its rough value and any existing mortgage on it.
- 2Agree terms in principleLenders give an indicative offer based on your figures and the security.
- 3Valuation and legal workThe lender values the property and solicitors register a charge over it.
- 4CompletionOnce the paperwork is signed, the funds are released.
How Much Do Secured Business Loans Cost?
Secured loans have the lowest rates of most business funding, but come with extra one-off costs for valuation and legal work. The loan-to-value (how much you borrow against the asset's value) has a big effect on price.
- Interest, fixed or variable
- Arrangement fee, often 1% to 2%
- Valuation and legal fees
- Early repayment charges on fixed-rate deals
Worked example
Borrowing £250,000 over 10 years
- Loan amount
- £250,000
- Interest rate
- 8% a year
- Monthly repayment
- £3,033.19
- Total interest
- £113,983
- Total repayable
- £363,983
Illustrative only, not a quote. Excludes valuation, legal and arrangement fees.
Who Can Get Secured Business Loans?
- Property or assets with enough equity to secure the loan
- Usually at least 1 to 2 years' trading
- Affordability shown in accounts and bank statements
- A credit history the lender can accept (secured lenders are often more flexible)
- Consent from anyone else with an interest in the property
What You'll Need to Apply
- Two years of accounts or tax returns
- Recent business bank statements
- Details of the property and any existing mortgage
- Director ID and personal asset and liability statements
Pros and Cons of Secured Business Loans
Advantages
- Lower interest rates
- Larger amounts and longer terms
- Easier approval if your credit isn't perfect
- Lower monthly payments over a longer term
Things to watch
- Your property or assets are at risk if you don't keep up repayments
- Slower, because of valuations and legal work
- Extra fees for valuation and solicitors
- If it's your home, it could be repossessed
Types of Security
First charge on property
The lender is first in line on a property with no other mortgage. Usually the best rates.
Second charge on property
Borrow against the equity in a property that already has a mortgage, without remortgaging.
Business assets
Machinery, vehicles or stock can sometimes secure a loan, often through asset finance.
See asset financeSecured Business Loans vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Secured business loan | Large, long-term investments | 2 – 6 weeks | Property or assets |
| Unsecured business loan | Fast funding without security | 1 – 5 days | None (guarantee usual) |
| Commercial mortgage | Buying or refinancing premises | 4 – 12 weeks | The property bought |
| Bridging loan | Short-term property needs | 1 – 3 weeks | Property |
Who Uses Secured Business Loans?
Secured loans suit businesses that own property or valuable assets and need a larger amount over a longer term.
Customer story
“[Real customer story for Secured Business Loans: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] secured business loan
Secured Business Loans FAQs
What can I use as security?
Most often commercial or residential property. Some lenders accept land, machinery, vehicles or other assets of clear value.
Can I use my home as security?
Yes, but your home could be repossessed if the loan isn't repaid. Lending secured on your home may also be regulated. Take independent advice first.
How much can I borrow against a property?
Lenders typically lend up to 60% to 75% of the property's value, minus any existing mortgage.
How long does a secured loan take?
Usually two to six weeks, mostly for the valuation and legal work.
Can I get a secured loan with bad credit?
Often, yes. Security reduces the lender's risk, so some lenders accept CCJs or defaults that would rule out unsecured lending.
Related Guides
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