Secured vs Unsecured Loans
Which should you choose?
If you’re looking for a business loan, you need to find the most cost-effective funding solution for your business and often, the question is, do you choose a Secured Loan or an Unsecured Loan? At Leasetech, we have access to all areas of the lending market and, our team has the knowledge and expertise to help you find the right Secured or Unsecured Loan for your business needs.
Take a look at our easy to follow guide on both Secured Loans and Unsecured Loans and get in touch for more guidance on which to choose.
A Secured Loan is lending against some kind of ‘security’ such as your property or an asset, which also means that if you cannot keep to the agreed repayments, that security can be legally taken to cover the amount borrowed.
- Ideal for borrowing larger sums of money: £25,000+
- Versatile, flexible and with lower repayments that can often be tailored to suit your business budget/turnover
- Longer repayment terms – up to 20 years
- Ideal for those with ‘adverse credit’
An Unsecured Loan offers a fast, flexible and easy way to access the business funds you’re looking for without the need for security or collateral, which means, your assets cannot be seized if you’re unable to keep up with your repayments. A personal guarantee (usually a written contract) is usually still required to ensure any loan is repaid.
- Ideal for borrowing both small and larger sums of money (up to £25,000)
- Flexible repayment periods (usually between 1-60 months) that can often be tailored to suit your business budget/turnover
- Simple and easy to apply with fast decisions – funds can be with you within days
- Generally no early repayment charges
Whilst applying for an Unsecured Loan can be a straightforward process, terms and rates can vary to a confusing degree. Unsecured Loans often have a higher interest rate than Secured Loans. At Leasetech, we not only have access to the entire UK market, we have the expertise, and take the time, to find the best funding solution for you.
Want to know more? Get in touch today and let us guide you through your options. We treat every application on a personal basis so that your search is tailored to your business requirements.