What’s the difference between secured and unsecured business loans?

A secured business loan uses an asset like property or equipment as collateral, offering lower interest rates and higher limits, but puts your asset at risk if you default. An unsecured loan doesn’t require collateral but often has higher interest and lower limits, and is based on your trading history and credit profile.

What are the alternatives to a secured business loan?

If you can’t offer collateral, you can explore unsecured funding like business credit cards, revolving credit facilities, merchant cash advances, or overdrafts. These offer flexibility and quick access without requiring assets.

What are the risks of a secured business loan?

The main risk is losing the asset if you default. There can also be setup delays due to valuations and legal checks, and you may face upfront costs like legal or valuation fees, even if the loan isn’t approved.

How do I know if I’m ready to apply for a secured business loan?

You should evaluate your funding needs, asset availability, and repayment ability. Prospera Funding helps you compare loan options and arrange funding, often within 24–48 hours, through a large UK lender panel.

Secured business loans for UK SMEs

Looking to raise a significant amount of funding for your business? Need competitive interest rates or extended repayment options?

A secured business loan might be the ideal choice.

By leveraging valuable business assets, such as commercial property, machinery, or company vehicles, you can access higher borrowing limits and more attractive terms. Because the loan is backed by collateral, lenders often offer lower interest rates and longer repayment periods compared to unsecured business finance.

What is a secured business loan, and how can it be used?

A secured business loan is a funding solution that requires you to pledge business or personal assets as collateral. These assets, such as property, equipment, or vehicles, serve as security for the lender, helping to reduce their risk. Because the loan is asset-backed, businesses can typically benefit from:

Lower interest rates, thanks to reduced lender risk

Longer repayment periods making monthly payments more manageable

Access to larger loan amounts, ideal for growth, expansion, or cash flow needs

Secured business loans are popular with UK SMEs seeking flexible finance with competitive terms.

Apply for a secured business loan

Secured Business Loan Calculator, Estimate Your Monthly Repayments

Rate from 4.5%, loans between £5,000 to £25,000,000.

360 overview of the whole UK lending market, all types of legal businesses considered.

Fast decisions, funding from as quickly as 24 hours.

No cost, risk or commitment...and no credit searches.

Why choose Prospera Funding for a secured business loan?

Full access to UK lenders

Access tailored business finance from £5,000 to £25M, with rates from 4.5%. Prospera Funding connects UK SMEs with both traditional and alternative lenders for flexible, fast business finance solutions.

Protecting your credit

We prioritise protecting your credit score by leveraging our lender network and industry expertise to assess your funding options without formal applications or credit checks.

Fast decisions

Our lenders offer faster funding than traditional bank loans, ideal for businesses needing quick access to working capital, cash flow, or growth. Decisions and funds in as little as 24 hours.

Transparent costs

You know your business best, and whether business finance makes sense to achieve your goals. At Prospera Funding, we simply present the best funding options, fully explain the costs, and let you decide. No risk, no commitment, and no broker fees.

Industry specialists

Our business finance specialists have expert knowledge and proven experience across multiple industries, ensuring tailored funding solutions aligned with your business goals.

Flexible options

Our lenders provide flexible loan terms, repayment options, and requirements, helping businesses find funding that aligns with their goals

Aftercare support

With expert finance specialists and a vast lender network, we deliver tailored business funding solutions and ongoing support, ensuring your company always has access to the most cost-effective finance options on the market.

Industry compliant

We work with FCA-regulated lenders and ensure full compliance with all industry rules and regulations.

How to apply for a secured business loan

We make business funding fast, simple, and tailored to you. Our advanced platform intelligently matches your business with the most relevant finance solutions from a wide panel of UK lenders. Whether you’re expanding, managing cash flow, or investing in growth, we’re here to help you access the funding you need, without the hassle.

Start your journey here

Women thinking about the process of applying for a secured business loan at Prospera Funding.

Get funded in 3 easy steps

1. Tell us about your secured business loan requirements

Let us know how much you’re looking to borrow, what it’s for, and a few key details about your business. No lengthy forms, just straightforward questions.