Secured vs unsecured business loans
Secured and unsecured loans solve the same problem in different ways. The right choice comes down to what you can offer as security and what you're optimising for — cost, speed, or keeping your assets free.
Unsecured: faster, no asset at risk
An unsecured loan isn't backed by a specific asset, so it's quicker to arrange and keeps your property and equipment free. Rates are higher to reflect the lender's risk, and most lenders ask a director for a personal guarantee.
Secured: cheaper, larger, slower
A secured loan is backed by an asset — usually property. That unlocks lower rates, larger amounts and longer terms, but completion is slower (valuation and legal work) and the asset is at risk if you default.
Which should you choose?
If you need funds fast or have nothing to secure against, unsecured is the natural route. If rate matters more than speed and you have an asset to pledge, secured will usually cost less over the life of the loan.
Frequently asked questions
Does an unsecured loan still need a personal guarantee?
Often, yes — it's not the same as securing against a business asset, but it does make a director personally liable. We'll always make any guarantee requirement clear before you proceed.
See what you qualify for
Start your application now — it's free, takes minutes, and there's no credit check to view your options.