Secured Loans

Good For:

Businesses with subprime or limited credit histories that have assets.

Bad For:

Business with limited or no assets. Also, businesses that have restricted cash flow should also be wary as defaulting on a secured loan could result in loss of assets.

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral, and if the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally loaned to the borrower.

Reasons why you might use a secured loan include:

  • Establish a line of credit with no or subprime credit.
  • Purchase new equipment to improve business operations.
  • Investing in remodeling or renovating commercial space
  • Planning long-term business expansion
Apply for a Secured Term Loan