Last updated: 19 Aug 2026

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Secured business loans

A secured business loan lets your business borrow a lump sum against an asset such as property, machinery or equipment, usually unlocking larger amounts and lower interest rates than unsecured finance.

  • Borrow up to £5 million, secured against property or business assets

  • Compare offers from multiple secured lenders across our panel

  • A dedicated funding specialist manages your application for you, start to finish

Capitalise is trusted by 200,000+ UK businesses

  • 130+ business lenders

  • Business credit data powered by Experian

  • £2bn in funding approved

  • FCA regulated since 2016

What is a secured business loan? 

A secured business loan is a loan where your business offers an asset, such as property, machinery, vehicles or another business asset, as collateral against the amount you borrow. Because the lender has something to fall back on if repayments stop, secured business loans typically come with lower interest rates, larger borrowing limits and longer repayment terms than unsecured lending. It suits businesses that own valuable assets and want to borrow a larger amount or get a more competitive rate than an unsecured loan would offer.

Why use Capitalise for a secured business loan?

  • Borrow more for less

    Putting up an asset as security usually means access to larger loan amounts and lower interest rates than an unsecured facility, since the lender has less risk to price in.

  • One application, multiple lenders

    Compare secured business loans from across our panel through a single application, rather than approaching lenders one by one and repeating the same paperwork.

  • A specialist who knows secured lending

    A dedicated funding specialist talks you through valuation, security requirements and the right lender for your asset, from application through to funds landing in your account.

How does a secured business loan work?

  1. You offer an asset as security. This is usually commercial or residential property, machinery, vehicles or another business asset with clear value.

  2. The lender values your asset. A valuation confirms how much your asset is worth and how much the lender is willing to lend against it.

  3. The lender reviews your business. Alongside the asset valuation, lenders check your financial statements, turnover and business credit score.

  4. Your loan is approved and released. Once approved, the agreed lump sum lands in your business bank account.

  5. You repay in fixed instalments. You repay the loan plus interest over the agreed term, and the lender holds a legal charge over your asset until the loan is repaid in full.

What can I use as security for a secured business loan?

  • Commercial or residential property, owned by the business or a director

  • Machinery and equipment used in the business

  • Business or commercial vehicles

  • Other business assets with clear resale value, such as stock

  • Director owned personal assets, in some cases, alongside or instead of business assets

Secured business loan rates, terms and amounts at a glance

Feature

Typical figure

Loan amount

Up to £5 million

Term

Up to 7 years, with property secured lending such as a commercial mortgage able to run up to 25 years

Interest rate

Around 6% to 10% APR for stronger applicants

Security needed

Yes, an asset such as property, equipment or another business asset

Approval speed

A few days for straightforward cases, longer if a full asset valuation is needed

Figures are illustrative and based on typical UK market ranges as of mid 2026. Your actual rate, term and loan size will depend on your asset, turnover and credit profile, so use this table as a guide rather than a quote.

What are the advantages and disadvantages of a secured business loan?

  • Advantages

    • Offering an asset as security reduces the lender's risk, which usually translates into a more competitive rate than an unsecured loan.

    • Repaying over a longer period keeps monthly repayments lower and more manageable.

    • Since your asset backs the loan, lenders can look beyond your credit score, making secured lending more accessible if your credit history isn't perfect.

  • Disadvantages

    • Getting your asset valued and registering the lender's charge against it usually adds extra costs on top of the loan itself.

    • If your business can't keep up repayments, the lender can take possession of the asset used as security to recover what's owed.

    • Valuing an asset and preparing legal paperwork typically takes longer than an unsecured application.

Am I eligible for a secured business loan?

  • Your business owns, or a director owns, an asset that can be offered as security

  • Your business has some trading history, though newer businesses can qualify if the security offered is strong

  • Your turnover and cash flow can comfortably cover the monthly repayments

  • Your business is registered and trading in the UK

  • A weaker credit history matters less than with unsecured lending, since your asset reduces the lender's risk

What documents do you need to apply for a secured business loan?

  • Proof of ownership of the asset you're offering as security, such as a property title or vehicle registration

  • 6 months of business bank statements

  • Your latest set of filed annual accounts, if available

  • A short explanation of what the loan is for

  • Proof of ID for each business director

How do I apply for a secured business loan with Capitalise?

  • Green circle with a white number "1" in the center.

    Tell us about your business

    We'll ask about your turnover, the asset you can offer as security, and how much you want to borrow.

  • Green circle with white number "2" in the center.

    Get matched with lenders

    Your application is matched against our panel of lenders who offer secured business loans.

  • Green circle with the white number 3 in the center.

    Speak to a funding specialist

    A dedicated specialist talks you through valuation, security requirements and the lenders most likely to approve you.

  • White number 4 on a solid green oval background.

    Lenders review your application

    Your funding specialist sends your application to multiple matched lenders, who assess your assets and financials before making an offer.

  • White number 5 centered on a green circular background.

    Accept an offer and receive your funds

    Once approved and your asset is valued and secured, your loan lands in your business bank account.

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