Secured business loans

Taking out a secured loan or re-mortgage on your home to fund a business venture is a way of generating a lump sum of capital to fund your business. Secured loans when taken out for the purpose of launching a business are sometimes called commercial loans. Businesses which own their office or factory space may be able to secure the loan against this property rather than the business owners home.

Secured business loans, commercial loans, are available to new businesses as well as established ones and can be used to cover the start up costs or expansion plans of the business.  Lenders are willing to lend money at favourable interest rates with secured business loans as the risks are minimised due to the security offered by the borrower, typically the family home. The value of the loan available will depend largely on the available equity in the asset offered as security and obviously the credit rating of the borrower.

Many financial institutions are willing to offer secured business loans, and finance brokers are available to search the marketplace to find the right secured business loan for your business.

One thing to bear in mind, if you are unable to meet the repayments of your secured business loan the lender has the right to repossess the property you offered as security.