Secured small business loans enable small and medium-sized companies to secure funding quickly and easily. Learn more about these types of loans to determine the best fit for your business needs.
Secured small business loans are loans that are backed with collateral. If the loan is not paid back, the lender can claim possession of the asset that was put up for collateral. Depending on the type of secured business loan required and the lender and borrower’s preferences, collateral can vary from personal property such as real estate or car to business inventory, equipment, and invoices. Merchant cash advances, invoice factoring, and equipment financing are common types of secured small business loans.
The best secured business loans often carry lower rates, more flexible terms, and fewer fees than unsecured loans. The flexibility to use personal or business assets as collateral can also be a benefit for businesses who are newer and may not have much in the way of business assets.
In addition to documentation such as bank statements, tax forms, and credit reports, secured small business loans also require additional time and paperwork to secure the collateral and appraise it if necessary.
Since secured small business loans require additional time and paperwork due to the collateral, they are not approved and funded as quickly as unsecured small business loans. Regardless, the best time to get a small business loan is always before your business needs it. That way, you’ll be able to do your research, make a funding decision confidently, and get the best rates available.
Merchant cash advance options are an easy way to turn sales into cash and get you the liquidity you need.
Secured equipment financing gets you exactly what you need to get the job done.