Secured business loans are generally higher value business loans that require a business to offer something as security. This is usually a company asset such as property, land, stock or equipment. This means the loan is secured against one or more of these assets, which the lender can take if a business stops making repayments.

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Secured business loans offer a method of financing to many companies who would be unable to access unsecured business loans because of poor credit ratings or a lack of established income.

Interest rates are generally set according to the risk to the lender and because secured loans are less risky for the lender, the interest rate is usually set at a lower level than those of unsecured loans. 

While it may be one of the easier methods of obtaining a loan if you have assets to put up for security, it is important to fully understand that should you find yourself unable to keep up with the payments, the relevant asset could be lost. 

A secured loan in any form can be a much more complex contract than most other types, so it may not be suitable if you require the funds quickly.

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