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Secured Business Loans

Funding in as little as 24 hours. Rates as low as 9.99%.
Funding in as little as 24 hours.
Rates as low as 9.99%.
Your Funding Recipe
What is your annual business revenue?
$0 - $49,000
$50,000 - $119,000
$120,000 - $249,000
$250,000 - $499,000
$500,000 - $999,000
$1,000,000 +
How long have you been in business?
small business funding
Just Started
(0-3 Months)
online business loans
Business
(4 Months or more)
Great, You're Pre-Qualified!
Growing your business has never been easier.
Please complete the form below
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Checking eligibility will not affect your credit score.
Your details will not be shared with third parties.
Finding the perfect program.

What is a Secured Business Loan?

A secured business loan is a financing program that requires collateral to secure funding. Secured loans offer more protection for lenders and better rates for applicants. Most traditional business loans are secured by either collateral or a personal guarantee and can be both short-term and long-term.

How Do Secured Business Loans Work?

Like most advances, secured business loans are received in a lump sum which is repaid either monthly or weekly over an agreed upon period of time. A secured loan can be either a short or long-term loan and has a variety of uses.

Do I need to offer collateral?

Secured loans require their applicants to offer assets as collateral in case their business becomes unable to pay off its loan. This protects lenders from defaults, allowing them to take possession of the pledged assets and liquidate them for cash if necessary.

What makes secured loans different from unsecured loans?

While unsecured loans are often advertised as requiring no collateral they aren’t unprotected. Most unsecured loans will require either a personal guarantee or a business lien to protect the lender from defaults.

Why Secure a Business Loan?

Business owners are rightfully cautious when including business assets in their loan agreements.

With most secured business loans, the asset which is purchased with the funding is used as collateral for the loan.

An example of this would be an equipment business loan. With this type of secured loan, you are asking your lender to provide you with the needed funds, in advance, to purchase a new piece of equipment for your company.

The lender will own the equipment until you finish paying off your loan. This gives the lender power to seize the unpaid for equipment if necessary.

Unsecured business loans may not require you to put specific assets on the line but they will ask you to sign either a personal guarantee or a blanket lien to protect themselves from defaulting businesses.

The Difference Between Secured & Unsecured Business Loans

Secured loans function just like any other loan types, meaning you receive the funds upfront and repay over an agreed upon period of time.

The key difference between secured and unsecured loans is that with a secured business loan you will be asked to post assets, either business or personal, in order to secure the funding for your company.

For example, if you don’t have assets to pledge, an unsecured loan will probably be a better fit for you.

On the other hand, if you do have assets to offer, collateral can help your business qualify by reducing the risk the lender is taking on your business.

If you’re having trouble deciding between an unsecured or secured loan for your business, consider the following:

  • Do you own your business assets?
  • How much funding are you looking for?
  • What is your credit score?

These three things will play a large role in helping you decide which loan type is right for you, as well as which loan type you have a better chance of qualifying for.

Types of Secured Business Loans

Deciding whether your business is better suited for a secured or unsecured business loan also depends on the type of loan you’re looking for. Some loans are secured simply by their intended use.

Here are some of the most common types of secured business loans:

Business Equipment Loans

Equipment loans are used to purchase expensive business equipment that may otherwise be unattainable for your business.

SBA Loans

SBA loans are secured using a guarantee by the Small Business Administration. This means the SBA will pay a percentage of the lender’s loss if your business becomes unable to make its payments, giving your business a chance at a loan with better rates.

Accounts Receivable Loans

This type of secured loan is useful when your business manages multiple accounts with payments due. Accounts receivable lenders will front your business the cash it’s owed so it can continue to function normally without having to wait for late payments.

Does My Business Qualify for a Secured Business Loan?

Each secured lender has a different set of qualities but they use the same parameters.

Each lender will look at these three things:

  • Time in business
  • Annual revenue
  • Credit score

Each type of unsecured loan, lender, and applicant are different, so what each lender expects from their applicants differs, as well.

Minimum Qualifications for Each Loan Type

Business Equipment Loans

Qualifying for equipment financing, while dependent on the price of the equipment, is pretty straightforward. Using the purchased equipment as collateral, your lender charges your business an interest rate as it pays back its loan.

Minimum qualification required:

  • 2+ years in business
  • $160,000+ in annual revenue
  • 620+ credit score

SBA Loans

The Small Business Administration has a wide variety of loan options. From bad credit programs to microloans, the SBA specializes in low rates for small business owners. The SBA may even offer a partial-guarantee in your loan with another lender, which may result in lower rates.

Minimum qualification required:

  • 2+ years in business
  • $50,000 in revenue
  • 650+ credit score

Accounts Receivable

Accounts receivable financing is another type of secured loan that is reliant on the amount owed to your business. If multiple past due accounts are stopping you from growing your business, accounts receivable financing can help your business keep moving forward as it waits for customers to pay off their balances owed.

Minimum qualification required:

  • 1+ year in business
  • $150,000+ in annual revenue
  • 600+ credit score

Preferences vary from lender to lender but with the right research and preparation, you’ll have an idea of what to expect before you fill out your application.

How Do I Apply for a Secured Business Loan Online?

Traditional lenders use applications that require more paperwork and may take longer to process. Applying online with Fast Capital 360, on the other hand, is easy. We help businesses compare their loan options all in one place with a simple online application.

When applying for a secured business loan online, you’ll be asked to provide basic business information like when your business was founded and what percentage of the business you own.

Knowing what else a lender might ask you to provide can help speed up the process.

Additional documents lenders will ask to be included with your application are:

  • Recent banks statements
  • Voided business check
  • Credit score
  • Tax returns

When considering a secured business loan, ask yourself what you’ll use the loan for, what your business can afford and what type of lender you’re interested in working with. This will help you narrow down your options as well as decide what’s best for your business.

Is a Secured Business Loan Right for Your Business?

Finding the right business loan requires a lot of research and preparation. Fast Capital 360 can help guide you in the right direction.

Our knowledgeable Business Advisors are available to walk you through how secured loans work, which types of assets can be used for collateral and even how to apply.

Knowing what options are available is important, but choosing the one that makes the most sense for your business is crucial.

Fast Capital 360 has made helping business owners find the right funding program for their company our passion. If you are still unsure which secured business loan works best for your business, one our knowledgeable Business Advisors can help guide your business in the right direction.

If you need guidance and want to learn more about secured business funds, a Fast Capital 360 Business Advisor can help guide you in the right direction.

Give us a call today at (800) 735-6107 or click here to chat with one of our advisors.

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Ready to get started?

Funding in as little as 24 hours.
Rates as low as 9.99%.
Your Funding Recipe
What is your annual business revenue?
$0 - $49,000
$50,000 - $119,000
$120,000 - $249,000
$250,000 - $499,000
$500,000 - $999,000
$1,000,000 +
How long have you been in business?
small business funding
Just Started
(0-3 Months)
online business loans
Business
(4 Months or more)
With a pre-qualification of up to
growing your business has never been easier.
Please complete the form below
Continue
Checking eligibility will not affect your credit score.
Your details will not be shared with third parties.
Finding the perfect program.
Fast Capital 360