Business loans

Secured business loans: borrowing against property and assets

Need a larger sum or longer term? Learn how secured business loans work, which assets lenders accept, legal vs equitable charges, costs and the key risks.

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Amount: From £10,000 to £20 millionLarger amounts through secured, property and asset-based finance
Security: Secured or unsecuredOptions compared for your case
Suitable businesses: Sole traders to limited companiesPartnerships and LLPs too
Lender panel: 300+ lendersWhole-of-market search

In short

What you need to know.

Secured business loans let an established business borrow more, and usually over a longer term, by offering property, land, vehicles or machinery as security.

Pricing tends to be lower than unsecured borrowing because the lender can sell the asset if repayments stop. Expect a valuation, legal work to register a charge and a longer timeline, and weigh the fact that the asset, which may be your premises or home, is at risk if you default.

Common uses

Buying premises, equipment or another business
Refinancing more expensive debt into one repayment
Funding expansion or a large contract
Releasing equity from property to strengthen working capital

If you need funds secured on property for only a few months, for example to complete on premises before a commercial mortgage is ready, a business bridging loan repaid from a sale or refinance may fit better than a longer secured term.

A transaction we arranged

£212,300

Approved, then nearly lost at completion. £212K consolidated.

A property-title requirement threatened a consolidation deal at the last hurdle. We worked it through and kept the structure intact.

Read the transaction

Sector: Debt consolidation
Structure: Consolidation facility
Outcome: Completed after a title issue was resolved

About secured business loans

Specialist knowledge. Better outcomes.

A secured business loan is a loan backed by an asset.

A secured business loan is a loan backed by an asset, such as commercial property, land, your home, vehicles or machinery, which the lender can sell if the loan is not repaid. It suits established businesses that need a larger sum or a longer term than unsecured lending allows, for example to buy premises, fund expansion or refinance existing debt. The trade-off is that the asset is at risk if repayments are missed.

Smart Funding Solutions is a broker, not a lender. We match the security you have with suitable lenders from our panel of 300+, including banks, specialist and non-bank lenders. Secured borrowing is one of several routes covered in our business finance overview.

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Independent brokerSmart Funding Solutions is an independent broker, not a lender.
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How a secured business loan works

You identify the securityThis is usually property, but some lenders accept vehicles, equipment, stock or receivables.
The lender values itProperty normally needs a formal valuation; equipment is assessed on age, condition and resale value.
The lender sets the amountIt lends against a proportion of the asset's value (the loan-to-value), leaving a margin in case the asset sells for less, and checks your business can afford the repayments from its cash flow.
A charge is registeredThe lender records its interest in the asset (see legal and equitable charges below).
You repay over an agreed termRepayments are usually monthly, covering interest and capital, at a fixed or variable rate. You keep using the asset throughout.

The process is closer to arranging a mortgage than an unsecured loan, so allow extra time for valuation and legal work. If you expect to draw and repay several times rather than borrow once, a property-backed revolving credit facility may suit better.

Legal and equitable charges explained

Legal charge

A legal charge gives the lender the right to sell the property if repayments are not made. Where there is already a mortgage, the lender takes a second charge, which usually needs the first lender's consent. That consent can add time to the process.

Equitable charge

Some lenders register an equitable charge instead. This does not normally need the existing mortgage lender's consent, so it can be quicker, but the lender's rights over the property are more limited. Which type is used depends on the lender, the loan size and the property.

Benefits and risks

Benefits

Larger loan amounts, linked to the value of your security
Pricing is usually lower than unsecured borrowing because the lender's risk is reduced
Longer repayment terms, which reduce monthly payments
A newer business or weaker credit history may be less of a barrier when strong security is available

Risks

You can lose the asset if you cannot keep up repayments; if it is a key machine, your premises or your home, the impact goes far beyond the loan
If the sale of the asset does not cover the debt, you may still owe the shortfall, especially under a personal guarantee
Larger sums can tempt you to borrow more than cash flow supports
Valuation, legal and arrangement fees add to the cost, and some loans carry early repayment charges
You usually cannot sell or refinance a charged asset without the lender's consent

For a side-by-side comparison with unsecured borrowing, read our guide to secured vs unsecured business loans.

Who qualifies for a secured business loan?

To qualify, you will typically need to be a UK limited company, LLP, partnership or sole trader with a suitable asset and cash flow that can afford the repayments. Criteria differ between lenders, which will consider:

The value, type and ownership of the security, and any debts already secured on it
Your trading history, turnover and profitability
Cash flow and the ability to afford repayments without relying on selling the asset
Credit history of the business and its owners
What the funds will be used for

The same asset can be viewed differently from one lender to the next. A high-street bank may prefer owner-occupied commercial property and several years of profitable accounts, while a specialist lender may accept a second charge, a mixed-use building or a shorter trading record in return for a lower loan-to-value or higher pricing. Knowing which lenders have appetite for your security type and sector is often what decides whether an application progresses.

If your credit record has problems, lenders will want to see that issues are behind you and trading is stable. See bad credit business loans for more.

How long does a secured business loan take?

A secured business loan against property typically takes four to eight weeks from application to drawdown, and sometimes longer, because it follows a process much like a commercial mortgage. The credit decision is often the quick part. Time goes on booking and receiving the valuation, the lender's solicitors checking title and preparing the charge, and, for a second charge, obtaining the first lender's consent. Leasehold property, unregistered title, properties owned by a director personally rather than the business, and slow replies to legal enquiries all add time. Loans secured on vehicles or equipment usually move faster, often within one to three weeks, as there is no property valuation or conveyancing. Having title details, accounts and existing mortgage statements ready at the start helps most.

If your deadline is tight, compare these timescales with faster unsecured options in our guide to how long it takes to get a business loan in the UK.

Alternatives to consider

Unsecured business loans for smaller, faster borrowing without pledging assets
Asset finance, where only the equipment being bought is the security
Bridging loans for short-term, property-backed funding with a clear exit
Invoice finance if your cash is tied up in unpaid customer invoices

Other pages that may suit your security or plans.

Property-backed borrowing: Second charge business loans, Property-backed revolving credit, Commercial mortgages, Business bridging loans.
Other security: Asset finance, Asset based lending, Invoice finance.
Lender reviews: Together, Mercantile Trust, Accredo.
Guides and tools: Secured vs unsecured business loans, Commercial mortgage calculator, DSCR calculator.

Checklist

Documents lenders usually ask for

Details of the asset: address or description, estimated value, title documents and any existing mortgage or finance
The last two years' filed accounts and recent management accounts
Recent business bank statements
Cash flow forecasts for larger loans
ID and address for directors or owners
A short explanation of what the funds are for

Side by side

Compare your options

How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.

Option	How you repay	Security	Often used for
Unsecured business loan	Fixed instalments, usually monthly	No charge over assets; a personal guarantee is usually required	Growth, stock, tax bills and cash flow
Secured business loanThis page	Fixed instalments, often over a longer term	A charge over property or other assets	Larger sums, property and refinancing
Revolving credit facility	Interest on what you draw; repay and redraw	Varies by lender and case	Recurring or uneven cash flow gaps
Merchant cash advance	A share of future card takings	No charge over assets	Card-taking businesses with uneven months
Asset finance	Regular payments over the life of the asset	The asset being financed	Equipment, vehicles and machinery
Invoice finance	Settled as customers pay their invoices	Your unpaid invoices	Businesses waiting on customer payment

General information only. Every lender has its own criteria, and all finance is subject to status.

What can be used as security

Security	How lenders view it
Commercial property or land	Often supports the largest loans and longest terms, including property with an existing mortgage
Residential property	A director's home or a buy-to-let; puts personal assets at risk and may be regulated in some cases
Vehicles, machinery and equipment	Valued on age, condition and how easily it could be resold
Stock	Usually valued at a discount, reflecting how quickly it could be sold
Unpaid invoices	Used through invoice finance or asset-based lending; customer quality matters

Lenders may also ask directors for a personal guarantee alongside the asset. If you are considering using your home, remember it could be repossessed if the loan is not repaid, and take independent advice first.

Match the asset to the right product

Not every asset suits every type of borrowing. Property suits larger term loans; equipment you are buying suits asset finance; equipment you already own suits asset refinancing; invoices suit invoice finance. Matching them properly usually gives better terms than forcing one asset to support everything.

How to get a secured business loan

To get a secured business loan, you need an asset a lender will accept, enough equity in it after any existing borrowing, and cash flow that can meet the repayments without relying on selling the asset. Preparing those three things first is what keeps the process moving.

Identify the security and its equity. Note the estimated value and what is already owed against it.
Check who owns it. Property in a director's name rather than the company's changes how the charge and any guarantee are set up.
Show affordability. Have filed accounts, management figures and recent bank statements ready.
Ask the existing lender early. A second charge usually needs the first lender's consent, which can take time.
Compare full terms. Look at fees, early repayment charges and guarantees as well as the rate.

Business loans secured against property

Commercial property, such as your premises, land or an investment building, is the security most lenders prefer for larger loans. Residential property, including a director's home or a buy-to-let, can also be used, but it puts personal assets at risk, and a loan secured on a home you or a family member lives in may be regulated in some cases. Where there is already a mortgage, a second charge business loan can release equity without replacing it.

Secured loans for the self-employed

Sole traders and partners can get secured business loans. Lenders use tax returns and bank statements in place of company accounts, and because the borrower and the business are the same, the security is usually personal property. Finance of £25,000 or less to sole traders and small partnerships can be regulated consumer credit.

Secured loan, commercial mortgage or bridging loan?

Option	Typically used for
Secured business loan	Raising funds for the business against property or assets you already own
Commercial mortgage	Buying or refinancing business premises over a long term; see commercial mortgages
Bridging loan	Short-term, property-backed funding with a clear exit such as a sale or refinance

Lenders differ widely in the assets, sectors and loan-to-values they will accept, so where you apply matters as much as what you offer. We approach lenders on our panel that suit your security type and loan-to-value, from high street banks to specialist lenders.

Loan to value: how much you can borrow

Loan to value (LTV) is the most a lender will lend against a property, as a percentage of its value. On a property that already has a mortgage, the limit covers both loans together.

Step	Example
Property value	£500,000
Lender's maximum loan to value	75%, so up to £375,000 secured in total
Existing mortgage	£200,000
Most you could borrow on a second charge	£175,000

Lenders on our panel lend up to 75% of a residential property's value on many secured business loans, and usually 60% to 75% on commercial property (checked October 2026). Affordability can cap the loan below that. Check what is registered against a property on HM Land Registry: search the register.

Homeowner or commercial property: what changes

Security	How lenders on our panel treat it	Points to weigh
Your home	Accepted by many, often as a second charge behind your mortgage; some homeowner loans need no other property	Your home is at risk if repayments stop; a loan secured on a home you or family live in may be regulated
Buy-to-let or other residential property	Widely accepted, usually up to 70% to 75% loan to value	Rent and the existing mortgage are taken into account
Commercial premises	Accepted by most, usually at 60% to 75% loan to value	Valuation and legal work take longer; owner-occupied premises may suit a commercial mortgage
Land	Accepted by few lenders, at around 60% loan to value	Planning and access affect the value

Being a homeowner also helps on its own: several lenders on our panel only offer their secured loans to businesses whose directors own a home. For a second charge, see second charge business loans. A charge on company property is registered at Companies House; see GOV.UK: registering a charge against a limited company.

Secured business loan rates on our panel

Ten of the secured lenders we compare, with loan sizes, terms, maximum loan to values and indicative rates. Many variable rates move with the Bank of England Bank Rate.

Lender	Best for	Amounts	Terms	Maximum loan to value	Indicative rate
Together Loans	Long-term loans of up to 30 years secured on property	£30k to £4.5m	Up to 30 years	Up to 75%	10.04% to 10.4% a year
Charles Street Finance	First and second charge loans, including commercial term loans up to 30 years	£50k to £10m	Up to 30 years	70% residential, 75% commercial	8.99% to 11.88% a year
Mercantile Trust	Second charge business loans with 2 or 5 year fixed rates	£10k to £500k	Up to 30 years	Up to 75%	10.84% to 12.05% a year
Accredo	Repayment or interest-only loans from £25,000	£25k to £1.5m	Up to 10 years	Set on valuation	12.9% a year
Praetura	First charge loans from £120,000 for businesses with good credit	£120k to £5m	Up to 6 years	Set on valuation	12% a year
Credit4	Loans of £75,000 to £250,000 for businesses trading 6 months or more	£75k to £250k	Up to 5 years	Up to 80%	18% a year
Asset Advantage	Homeowner-backed loans from £75,000, with a separate new business product	£75k to £1m	Up to 5 years	Set on valuation	14% to 16% a year
Rivers Leasing	Homeowner-backed loans of £25,000 to £250,000, including new starts	£25k to £250k	Up to 5 years	Set on valuation	17.5% to 21.7% a year
Evolve Lending	Short-term and revolving first and second charge facilities	£25k to £2.5m	Up to 3 years	Up to 75%	0.95% to 1.5% a month
Ultimate Finance	Structured secured facilities from £500,000	£500k to £10m	Up to 5 years	Up to 75%	12% a year

Indicative ranges from lenders on our panel, checked October 2026; your rate depends on your circumstances. Rates are yearly unless the lender prices by the month. Smart Funding Solutions is a broker, not a lender, and is not part of any lender listed. Fees depend on the lender, nothing upfront. See all lender reviews.

Secured business loan: a worked example

A business borrows £250,000 secured on its premises, worth £400,000 (62.5% loan to value), over ten years at an assumed 10% a year.

Item	Figure
Loan	£250,000
Term	10 years
Monthly repayment	£3,303.77
Total interest	£146,452.21
Total repaid	£396,452.21

The rate is an assumption for the illustration, not a quote; fees and VAT are left out, and the rate you are offered depends on the lender and your circumstances.

Over five years at an assumed 11% a year, £150,000 would cost £3,261.36 a month and £195,681.81 in total. Valuation, legal and arrangement fees depend on the lender. Try the business loan calculator, or the DSCR calculator to test affordability.

How we arrange a secured loan

We discuss the amount, purpose and the security you could offer, including any existing charges.
We look at which lenders suit that asset type and loan-to-value.
We approach suitable lenders and coordinate valuation and legal requirements.
We review offers with you, including charges, guarantees, fees and early repayment terms.
Once the lender has underwritten the case, it issues a formal offer with conditions, such as a satisfactory valuation, title checks and any personal guarantees. Solicitors then prepare and register the charge, the documents are signed and the funds are drawn down.

Timescales depend largely on valuation and legal work, and approval is always the lender's decision. It is free to enquire; any broker fee is disclosed separately before you proceed. When you have the asset details to hand, you can discuss your requirement online.

Ready when you are

Instant secured business loan quotes

Tell us how much you need and what it is for. Instant Quotes shows which lenders on our panel fit your business, then a broker helps you choose the right option.

Prefer to talk it through? Call 01244 267694

FAQs

Questions clients ask

How much can I borrow with a secured business loan?

The amount depends mainly on the value of your security, any existing borrowing against it and your business's ability to repay. Lenders apply a maximum loan-to-value that varies by asset type and lender, and property generally supports more than equipment or stock. Once we know the asset and your figures, we can tell you what is realistic.

Can I get a secured business loan with bad credit?

Yes, a secured business loan is often easier to obtain with bad credit than unsecured borrowing, because the lender can rely on the property or asset. Lenders will still check credit histories and want to understand what went wrong, how recent it was and whether it is resolved. Expect a lower loan-to-value or higher cost than a clean case. Our page on bad credit business loans covers other options.

Is a business loan secured on my home regulated?

It can be. A business loan secured on a home that you or a family member lives in may be regulated in some cases, depending on who is borrowing, the amount and how the property is used, and regulated lending brings extra protections. Finance of £25,000 or less to sole traders and small partnerships can also be regulated consumer credit. Your home could be repossessed if the loan is not repaid, so take independent advice first.

Can a start-up get a secured business loan?

Some lenders will consider a secured business loan for a start-up, particularly where there is good property security and the owners have relevant experience. Lenders still need to see how repayments will be met, so a business plan and cash flow forecast are essential. Security does not replace affordability. Our page on start-up business loans explains other funding routes for new businesses.

What happens if I cannot repay a secured business loan?

If you cannot repay a secured business loan, the lender can take steps to enforce its security, which may mean selling the property or asset to recover the debt. Any shortfall may still be owed, including under a personal guarantee. Contact the lender as early as possible, as many will discuss a revised payment plan before taking action, and take independent advice if the business is under financial strain.

Is a secured business loan easier to get than an unsecured loan?

Often, yes, because the lender can rely on the asset if repayments stop, which can open up larger amounts, longer terms and more flexibility on credit history or trading record. It is not automatic, though: lenders still need to see that the business can afford the repayments from cash flow. The process is also slower, because of valuation and legal work.

Do secured business loans affect your credit score?

They can. A full credit search is usually carried out on application and appears on the credit file, and the loan itself is normally reported to credit reference agencies. Repaying on time can help build your credit history, while missed payments harm it and put the security at risk. Where directors give a personal guarantee, their personal files may also be checked.

Can I secure a business loan against a buy-to-let property?

Yes, some lenders will accept a buy-to-let or other investment property as security for a business loan, usually by taking a first or second charge. They will look at the property's value, any existing mortgage, who owns it and whether the existing lender consents. Your business still needs to show it can afford the repayments, and the property is at risk if they are not made.

What loan to value can I get on a secured business loan?

Lenders on our panel lend up to 75% of a residential property's value on many secured business loans and usually 60% to 75% on commercial property (checked October 2026), less anything already secured on it. Affordability can cap the loan below that.

What are typical secured business loan rates?

Rates depend on the lender, the security, the loan to value and your business. The table above shows indicative ranges from lenders on our panel, checked October 2026; some lenders price by the month, so compare offers on the total amount repayable.

How long can a secured business loan last?

From a few months for short-term and revolving facilities to as long as 30 years for some loans secured on property, on our panel. Longer terms lower the repayments but add interest.

Do all secured business loans need a personal guarantee?

No, but most do. Most secured loan products on our panel ask directors for a personal guarantee as well as the property charge.

What does loan to value mean on a secured business loan?

Loan to value (LTV) is the loan as a percentage of the property's value: £200,000 against a £400,000 building is 50% LTV. Lenders set a maximum LTV for each product, and a lower LTV usually means a lower rate. Our glossary explains loan to value with an example.

Official guidance

Relevant transactions

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£35,000Pub and B&B

£35K secured on the business premises, not the family home.

A pub and B&B wanted secured funding but needed clarity on where the security would sit. The charge went on the trading property.

First-charge secured loanRead the transaction

£70,000Building services consultancy

Unsecured routes had not worked. £70K refinanced HMRC and short-term debts.

Project income was due later; HMRC and short-term debts were due now. We restructured them into one facility.

Debt consolidationRead the transaction

Lender reviews

Lenders we compare for secured business loans

Independent write-ups of lenders on our panel that offer this type of finance. Smart Funding Solutions is a broker and is not part of any lender listed. See all lender reviews.

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