Secured Business Loans: Best UK Lenders Compared
Compare leading UK secured business loan lenders, including Together, Shawbrook, Close Brothers and OakNorth. See who suits which business and what to check.
The best secured business loan lender for you depends on your security, your trading profile and how fast you need funds, not on any single “top” name. In the UK, well-known lenders in this space include Together, Shawbrook, Close Brothers and OakNorth, each with different appetites for property, assets and business types. This guide explains how secured business loans work, compares the main lenders fairly, and shows you how to weigh them against your own situation.
Greenwood Capital is a Manchester-based whole-of-market finance broker. We compare lenders across the market rather than selling one provider’s product, so the aim here is to inform your thinking, not to steer you toward a single lender.
What is a secured business loan?
A secured business loan is business borrowing backed by an asset the lender can claim if the loan is not repaid, most commonly commercial or residential property, but sometimes equipment, machinery or company debtors. Because the lender’s risk is lower, secured loans often allow larger sums, longer terms and, directionally, keener pricing than unsecured borrowing, though actual rates vary widely by profile and security.
The trade-off is real: if the business cannot repay, the lender can enforce against the secured asset. Many facilities also require a personal guarantee, which can put personal assets at risk. Always read the security and guarantee terms in full before committing.
The main types of secured business finance
- Property-backed term loan: a lump sum repaid over a set term (often 1 to 25 years), secured by a first or second charge over property. Suited to growth, refinancing or larger one-off costs.
- Commercial mortgage: a loan to buy or refinance business premises, secured on that property. Terms are typically long, and the property itself is the primary security.
- Bridging loan: short-term finance (usually a few months up to around 24 months) secured on property, used to “bridge” a timing gap, for example buying at auction before longer-term funding is arranged. It is fast but usually carries higher costs.
- Asset finance: borrowing secured against equipment, vehicles or machinery, either to buy new assets (hire purchase and leasing) or to release cash from ones you already own (asset refinance).
How we chose these lenders
As a whole-of-market broker, we look at lender appetite, flexibility and fit rather than picking a single winner, because the “best” lender changes with each business’s security and circumstances. The four lenders below are widely used, established names in UK secured business lending, and we have described each one’s typical strengths and watch-outs impartially.
We have not published specific rates or fees, because these move frequently and depend heavily on loan-to-value, term, sector and credit profile. Treat every figure you see quoted anywhere as indicative only, and confirm current terms directly with the lender or through a broker.
The shortlist: leading UK secured business loan lenders
Together, best for complex or non-standard cases
Together is a long-established specialist lender known for considering cases that mainstream banks may decline, including complex income, unusual property types and short-term needs. It is active in secured business lending, bridging and property-backed loans, and often looks at the wider circumstances rather than applying rigid tick-box criteria.
It tends to suit businesses and property investors with a clear plan but a non-standard profile, for example an unusual security or a time-sensitive purchase. The watch-out is cost: specialist and short-term flexibility can come with higher pricing than a vanilla high-street facility, so compare the total cost over the life of the loan and confirm current rates and fees before proceeding.
Shawbrook, best for property investors and SME term lending
Shawbrook is a specialist bank with a strong presence in commercial and property finance, including secured term loans, commercial mortgages and lending to landlords and SMEs. It combines relatively flexible underwriting with the structure of an established bank, and often takes a considered, case-by-case view.
It can suit established businesses and experienced property investors who want a lender comfortable with commercial and semi-commercial security. As with any specialist bank, criteria and appetite shift over time, so it is worth checking current lending policy, minimum and maximum loan sizes and any early repayment terms before you apply.
Close Brothers, best for asset finance and equipment-backed lending
Close Brothers is a merchant banking group with a well-regarded asset finance operation, making it a natural reference point where the security is equipment, vehicles, plant or machinery. It supports hire purchase, leasing and asset refinance across a range of sectors, from transport to manufacturing.
It tends to suit businesses that want to fund or refinance physical assets rather than borrow purely against property. The watch-out is that asset finance structures differ from property loans in how ownership, VAT and end-of-term options work, so make sure you understand the agreement type and total cost, and confirm current terms directly.
OakNorth, best for larger, growth-focused business loans
OakNorth is a bank focused on lending to established, growth-oriented SMEs, often at larger loan sizes and with a bespoke, relationship-led approach to underwriting. It is known for taking time to understand a business’s numbers and forward plan rather than relying solely on automated scoring.
It can suit profitable, scaling businesses seeking a sizeable secured facility for acquisition, expansion or refinancing. It is generally less oriented toward very small or early-stage borrowers, so it helps to have a solid trading history and clear financials. Confirm minimum loan sizes and current criteria before spending time on an application.
High-street and challenger banks, best for standard, lower-cost cases
Mainstream banks and several challenger banks also offer secured business loans and commercial mortgages, and for straightforward, well-documented cases they can be among the most cost-effective options. They typically favour established businesses with clean credit, clear affordability and conventional security.
The trade-off is that their criteria can be less flexible and decisions slower, so borrowers with complex income, unusual property or urgent timelines may find specialists a better fit. It is worth getting a mainstream quote as a benchmark even if you expect to use a specialist.
Comparison table
| Lender | Best for | Typical funding size | Tends to suit | Watch-outs |
|---|---|---|---|---|
| Together | Complex or non-standard cases | £30k–£2m | Non-standard profiles, time-sensitive needs | Specialist flexibility can cost more; compare total cost |
| Shawbrook | Property investors and SME term lending | £150k–£35m | Established SMEs, experienced investors | Criteria vary; check loan sizes and early repayment terms |
| Close Brothers | Asset finance and equipment-backed lending | On application | Businesses funding or refinancing assets | Agreement structures differ; understand VAT and end-of-term |
| OakNorth | Larger, growth-focused loans | From £1m | Profitable, growing businesses | Less geared to very small or early-stage borrowers |
| High-street / challenger banks | Standard, lower-cost cases | Varies by lender | Established businesses, clean credit | Less flexible criteria; can be slower to decide |
Details, appetite and pricing change over time. Use this table to shortlist, then confirm current terms with each lender or through a broker.
A worked scenario: weighing two options
Imagine a manufacturing business that owns its premises and wants to raise £400,000: partly to buy a new production line and partly for working capital. Two credible routes emerge, and they illustrate how the “best” lender depends on the structure.
Option one is a property-backed term loan from a specialist bank such as Shawbrook, secured on the premises. This could fund the whole £400,000 in one facility, with a longer repayment term spreading the cost, but it places a charge over the property and ties the working capital element to that security.
Option two splits the need: an asset finance agreement from a lender like Close Brothers to fund the production line (secured on the equipment itself), plus a smaller facility for working capital. This keeps the property unencumbered and matches the equipment cost to the asset’s useful life, though juggling two agreements adds admin.
Neither is automatically better. A business prioritising simplicity and a long term may prefer option one; one wanting to protect its property and match funding to the asset may prefer option two. The right answer depends on cost, cash flow and risk appetite, which is exactly what comparing the market clarifies.
How to choose for your situation
Choosing a secured business loan lender comes down to matching your security, timeline and trading profile to a lender’s appetite, then comparing the total cost. The key questions to work through are below.
- What security can you offer? Property points you toward commercial mortgages and property-backed loans; equipment points toward asset finance.
- How quickly do you need funds? Urgent cases may need a specialist or bridging lender; non-urgent cases can benefit from slower, potentially cheaper mainstream options.
- How much do you need, and for how long? Larger sums and longer terms narrow the field; some lenders have minimum loan sizes that rule out smaller requests.
- How standard is your profile? Clean credit and conventional security open up mainstream lenders; complex income or unusual property may need a specialist.
- What is the total cost, not just the headline rate? Arrangement fees, valuation costs, legal fees and early repayment charges all affect the real price.
What to check before you commit
Before signing any secured facility, confirm the full terms in writing and make sure you understand what happens if circumstances change. Secured borrowing puts an asset at risk, so the detail matters.
- The security and any personal guarantee: know exactly which assets are charged and whether directors are personally liable.
- Total cost of borrowing: ask for all fees, the interest basis and the total repayable, then compare like for like across lenders.
- Early repayment terms: check whether repaying early triggers charges, which matters if you may refinance or sell.
- Loan-to-value and valuation: understand how the lender values your security and how that affects the amount and rate offered.
- Term and repayment structure: confirm whether payments are capital-and-interest or interest-only, and how a bullet or balloon at the end is handled.
- Timescales and conditions: clarify what documents are needed and what conditions must be met before funds are released.
This is general information, not advice. Your own circumstances, tax position and objectives should shape any decision, and where appropriate you may wish to take professional advice.
Let us compare the market for you
If you are weighing up secured business loan lenders, Greenwood Capital can compare options across the market and match them to your situation, saving you approaching each lender one by one. We are a whole-of-market broker, so our starting point is your circumstances, not a single product.
Tell us what you need to fund, the security you can offer and your rough timeline, and we will help you understand the realistic routes and current terms. This is general help to inform your thinking, not financial advice. Get in touch to start a no-obligation conversation.