Secured Business Loans

Use property, equipment, or vehicles to access larger amounts at lower rates. One application, 50 plus lenders compared, no credit impact at enquiry.

£25k – £5m+
Loan Amounts		 4 Weeks
Timeline		 50+
Lenders		 Rates Tailored
To Your Asset

Larger loans. Longer terms. Lower rates.

If your business owns property, equipment, or vehicles, you can access larger loan amounts at lower interest rates by using them as security. Secured business loans offer competitive rates 3-5% below unsecured options, with longer repayment terms that give your cash flow breathing room.

They take a little longer to arrange, but the payoff is flexibility, scale, and affordability. Whether you’re refinancing, investing in growth, or making a major purchase, we’ll help you navigate the process and secure funding that supports your next step.

What is a secured business loan?

A secured business loan is funding backed by an asset – like property, vehicles, or equipment – used as collateral. This setup
lowers the risk for lenders, often resulting in lower interest rates, longer repayment terms, and the ability to borrow more than
you could with an unsecured loan.

In short, if your business has assets to leverage, a secured loan opens the door to more affordable and scalable finance. It’s
commonly used for larger investments, business expansion, equipment purchases, or refinancing existing debt.

Lenders typically assess the value of the asset you’re securing the loan against, alongside your credit profile and trading
history. Accepted collateral can include:

  • Commercial property (owned outright or mortgaged).
  • Business equipment and machinery.
  • Vehicles or fleets.
  • Inventory or invoices (in some cases).
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How much you can borrow depends on the loan-to-value ratio the lender will accept against your asset. As a guide:

Asset type Typical maximum LTV Notes
Commercial property (owner-occupied) 70 to 75% Higher LTV available for strong trading businesses
Commercial property (investment) 65 to 70% Rent cover ratio also assessed
Residential property 70 to 75% Subject to affordability checks on directors
Plant and machinery 50 to 65% Depends on age and resale market
Vehicles 70 to 80% Higher LTV for newer assets

These are starting points, not hard limits. A business with strong trading, clean credit, and a straightforward asset can often push above these ranges. A weak application against a specialist asset will land at the lower end.

Secured business loans in the UK can take a little longer to arrange than unsecured loans. That’s because lenders may need formal valuations and additional legal checks. But for many business owners, the payoff is lower rates and longer-term financial breathing room.

First charge vs second charge: what is the difference?

First charge: the lender’s claim ranks ahead of all others. Available when there is no existing debt secured against the asset. Gives you access to the widest choice of lenders and the lowest rates.

Second charge: sits behind an existing first charge, typically a commercial mortgage. The second charge lender is only paid after the first charge is cleared, which means a narrower pool of lenders and a higher rate.

If your asset already has a mortgage against it, the amount you can borrow will be based on the remaining equity, not the full asset value.

Unsecured vs secured lending

The key difference between secured and unsecured business loans comes down to collateral.

A secured business loan is backed by an asset-like property, vehicles, or equipment, which acts as security for the lender. Because there’s less risk involved, you’ll usually get lower interest rates, larger loan amounts, and longer repayment terms. However, it can take longer to arrange, and your asset may be at risk if you’re unable to meet repayments.

Unsecured loans, by contrast, don’t require any collateral. They’re typically quicker to arrange, with less paperwork and fewer checks. This makes them a practical choice if you don’t own valuable assets or want to keep them separate from your borrowing. However, interest rates may be slightly higher, and approval often depends more heavily on your business’s trading history and credit profile.

Learn more in our secured vs unsecured business loans guide.

Get help choosing the right loan

The real cost of a secured business loan

Rate is the headline number, but it is not the whole cost. Secured lending involves additional charges that unsecured deals do
not. Budget for the following before you commit:

Cost Typical range
RICS valuation (commercial
property)		 £1,000 to £3,000
Lender legal fees £1,500 to £3,000
Your own legal fees £750 to £2,000
Lender arrangement fee 1 to 2% of loan amount
Typical total on a £300,000 loan £7,000 to £14,000

Some lenders roll the arrangement fee into the loan, which looks cleaner on day one but means you are paying interest on fees
for the full term. It is worth running the numbers both ways before deciding which structure suits you better.

Worth knowing: Valuation and legal costs are typically paid whether the loan completes or
not. If a deal falls through after those stages, you will not recover those costs. Make sure you have a realistic picture of likely
approval before committing to formal stages.

Is a secured loan right for my business?

A secured business loan could be a great fit if you’re planning a larger investment and have assets you’re willing to use as collateral. These loans are designed for businesses that want long-term funding, lower rates, and greater borrowing power.

You might consider a secured loan if:

  • You need to borrow a larger sum.
  • You want lower interest rates and longer repayment terms.
  • You’re happy to use property, vehicles or equipment as security.
  • You’re looking to refinance existing debt more affordably.
  • You’re investing in long-term growth, like purchasing new premises or major equipment.

That said, secured loans take longer to arrange than unsecured options. You’ll also need to be comfortable with the idea that the asset you secure the loan against could be at risk if repayments aren’t met.

Find out what you could borrow

Why use a broker for secured lending

Using a broker adds value on any business finance deal. On secured lending, that value is greater. The complexity is higher, the costs of a poor lender match are larger, and the process has more moving parts. Here is why working with Greenwood makes a difference.

Lender appetite varies significantly by asset type.

Some lenders work well on commercial property but will not touch plant and machinery. Others have strong appetite for second charge positions. Knowing where appetite sits before approaching anyone means you protect your credit file and reach the right lender faster.

Rate is negotiable, but only if you have alternatives.

When you go direct to one lender, you get one offer and limited room to push back. When Greenwood brings back multiple offers from our panel, you have genuine leverage. That leverage typically produces a better rate on the deal you actually take.

Process management prevents deals from stalling.

Secured lending involves more moving parts than any other product: valuation, legal charge registration, documentation on both sides, and lender credit committee sign-off. If any of those steps slows, the deal slows. We manage the process on your behalf, which matters especially when you are working to a deadline.

How to apply

The eligibility check takes a few minutes and has no impact on your credit file. After that, the timeline depends on the asset type and the lender selected. For a standard commercial property deal, four to six weeks is realistic. More complex cases take longer.

1

Check eligibility online

A few minutes, soft search only. No impact on your credit score. We will ask about the asset, the borrowing requirement, and the business.
2

We search the market

One application goes to our panel of 50 plus lenders. We identify which lenders have genuine appetite for your asset type and profile, then present the best options.
3

Formal valuation and documentation

Once you accept an offer, we instruct a RICS-approved valuer. The lender reviews the valuation and formal credit approval follows. We tell you exactly what documentation is needed and when.
4

Legal and completion

Solicitors on both sides handle the charge registration. We coordinate between all parties to keep things moving. On completion, funds are released directly to you.
Check your funding options
Nathan
TrustPilot Review
I used Greenwood Capital to release equity from one of my properties so my company could refurbish another and boost our letting income. Frazer and the team were excellent - clear, concise, and quick from start to finish.
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Frequently asked questions

We’ve answered some of the most common questions below, from how quickly we can fund to what kind of businesses we support.

  • Are secured loans hard to get?

    Secured business loans are not necessarily hard to get, but approval depends on your business profile and the asset you’re offering as security. If your business owns property, equipment, or vehicles with sufficient value, you may find it easier to get approved than with an unsecured loan. The process can take longer due to valuations and legal checks, but lenders tend to offer more flexible terms in return.

  • Is a secured loan cheaper than a personal loan?

    Yes, a secured loan is often cheaper than a personal loan. Because secured loans are backed by assets like property or equipment, lenders face less risk and can offer lower interest rates and longer repayment terms. If you're looking to borrow a larger amount or reduce your monthly repayments, a secured business loan can be more cost-effective than a standard personal loan.

  • Do secured loans affect your credit score?

    Checking your eligibility for a secured loan won’t impact your credit score, as we only run a soft search. If you go ahead with a full application, the lender may carry out a hard credit check, which could temporarily affect your score. Greenwood Capital lets you explore your options with no obligation and no initial impact on your credit.

  • What assets can be used to secure a business loan?

    Commercial property, residential property, plant and machinery, and vehicles are the most commonly accepted security. The lender registers a legal charge against the asset, which they can enforce if the loan defaults. Commercial property is the most straightforward for most lenders. Equipment and vehicles are accepted by a narrower panel, and the age and condition of the asset affects how much can be borrowed against it.

  • What is the difference between a first and second charge?

    A first charge means the lender's claim on the asset ranks ahead of all other creditors if the asset is sold or enforced against. A second charge sits behind an existing first charge, typically a commercial mortgage, and the second charge lender only receives their money after the first charge has been repaid in full. Second charge lending is available from a smaller pool of lenders and at a higher rate, reflecting the additional risk of their position.

  • How long does a secured business loan take to arrange?

    Four to six weeks is realistic for a straightforward commercial property case. More complex transactions, specialist assets, or applications that need additional information take longer. Eight to twelve weeks is not unusual where the title has complications. The eligibility check itself takes a few minutes. The delay comes in the formal stages: valuation booking, instruction of solicitors, and lender credit committee sign-off.

  • Can I get a secured business loan with bad credit?

    It depends on the nature of the adverse credit. An active CCJ against a director is a significant barrier for most mainstream secured lenders. A satisfied CCJ from three or more years ago is less of a problem, particularly if the asset value is strong and trading is healthy. Some specialist lenders focus on adverse credit secured deals. The rate will reflect the additional risk, but options do exist. We can give you an honest picture of what is likely available before any hard searches are made.

  • What happens if I cannot repay a secured business loan?

    The lender can enforce the legal charge against the asset used as security. For commercial property, that means they can ultimately appoint a receiver or force a sale to recover the outstanding balance. This is why it is important to be realistic about serviceability before committing. If repayment difficulties arise, the best course is to contact the lender early. Options including payment holidays or term extensions are more available when you engage before a default than after one.

Turn assets into funding.

Your assets deserve to work harder for your business. Contact our specialists today to explore secured loan options that offer larger amounts at lower rates. Apply above or get in touch now.

Let’s secure the right deal for you

Benet Thomas

Marketing Manager, Greenwood Capital

With over 15 years in marketing and 7 in finance, Benet brings a unique perspective to business lending — making complex financial products clear and accessible for UK businesses.