Running a business has its ups and downs. There are times when everything is going well and you feel like you are a success with plenty of money coming in and the profit higher than the outgoings.
However, there are also times when the outgoings are higher than what is coming in and you can feel like things are not going as well as you hoped.
When this happens, you may start to look at business finance options that are open to you. There are a variety out there that you can choose from and one of these is a secured business loan.
But what is a secured business loan and why might you need to take one on?
What is a secured business loan?
As the name suggests, a secured business loan is a loan for your business which has some form of security offered against it. This security usually comes in the form of property, land, stock or maybe even equipment.
When you take out a secured business loan, whatever it is that you have offered as security can be claimed by your lender if you do not manage to make the repayments.
The reasons why you might need to organise a secured business loan
There are a variety of reasons why you might find that you need to organise a secured business loan. It could be to buy more stock or perhaps to invest in a brand-new product or service that is going to grow your business. You could also organise a secured business loan in order to purchase more equipment that you need for your business.
Another reason that some businesses may organise a secured business loan is because they are looking to expand, they are looking to grow and that they are looking to find new avenues that can really help you to become the success that you hope to be in the future.
The things to consider before taking out a secured business loan
One of the main benefits to organising a secured business loan, particularly when compared to an unsecured loan, is that it is seen as a lower risk to the lender. This is because you have offered some form of security (usually a company asset such as property or stock) which can be claimed if the payments are not made.
In doing this, the lender is often going to be able to offer up lower rates to you as a borrower, saving you money in the long-term. You may also find that they have longer repayment terms and that their terms are more flexible than other forms of borrowing.
For secured business loans contact us
The Funding Store has a selected panel of funders who offer secured loans to both trading businesses and start-up businesses. Contact us to discuss your needs and to arrange a quick quote to see the finance that is available to you.
Request a callback to discuss a secured business loan…
This article has been produced by The Funding Store for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by The Funding Store (MK) Limited. In all cases appropriate professional advice should be sought before making a decision.