For small and medium enterprises, it can prove challenging to obtain the capital required when first starting and establishing the different phases in their business. This is especially important when seeking competitive or lower rates of interests for the company. In this scenario a secured loan may be the most viable option for you, using property or business assets as collateral to offset the risk of borrowing by offering them as security to the lender. This is usually issued as a second charge for the borrower, and rates usually start at 2% over base rate.
Elite Business Funding are a reputable and professional commercial finance broker who can offer you a wide range of funding options, arranging secured finance for every client and circumstance. When clients come to us with their queries, we review their financial situation, assessing their viability for secured finance, as well as their suitability to other funding option we supply.
Difference between secured and unsecured loans
Borrowing any sum of money for your company by using collateral is the simplest form of protection. Unlike unsecured loans, the lender can repossess your collateral if you default on payments and it is not repaid. However, with indemnification set in place, there is an improved chance of acceptance for a secured finance, benefiting asset rich companies who are seeking immediate bankroll and are looking to release equity quickly.
Benefits of a secured finance
As mentioned above, on the basis that collateral can be used as an additional form of protection, you have a higher chance of acceptance from lenders who will agree to provide you with secured finance, as they can repossess your assets if they are not refunded in the contracted duration. Another benefit of secured loans is that they obtain lower interest rates which are obscenely competitive within the financing sector, unlike secured loans the collateral represents lower risk for the lender. The terms we offer can range from anything between 6 months up to 30 years, which is a benefit to those looking for a short or long-term funding option.
For businesses who require expensive machinery in order to carry out their daily activities which contributes to their ability to provide a reputable service to consumers, acquiring a secured business loan can give you the head-start needed to increase revenue and overall cashflow. Property funding can also assist the expansion of offices, whether they’re looking to recruit new employees or create a spacious working environment, then a secured finance option could be the perfect solution for you.
Do you meet the general criteria for a secured finance?
Before enlisting the service of a commercial broker like us, you need to be aware of the general criteria which can verify your eligibility for a secured finance loan.
Read the list below to assess your viability:
• Home owner
• Small % LTV if looking for second charge
• Good credit score
• Profitable
• Age restrictions
• Recent CCJs or Defaults may cause issues
What are these types of funding often used for?
A secured finance can benefit a multitude of businesses in every type of sector and for all circumstances. However, with a wealth of experience in handling secured loans, we commonly work with companies that require business expansion and a growth to the income flow. A large number of companies request this type of advance for mortgages, purchasing land, large warehouse machinery, and long-term project plans. These are all factors which require the involvement of a loan due to the nature of secured finances being acquired simply and quickly. They can also be valuable for bridging type funding where you may need to borrow money for a short period of time in order to develop and enhance your organisation.
Contact us for a secured finance loan today
Here at Elite Business Funding, we operate seamless function with all clients and factor in all aspects which could affect a business’s ability to secure funding. If you believe that you’re eligible for secured finance, we are always on the other end of the phone and we are more than aware that people have busy schedules so whatever the query or time, we are available and will give you the effort and endeavour to solve and advise you on the best direction to follow with Elite Business Funding.
There is no need to worry either, as if your eligibility is declined, we will give detailed advice and instruct you on which funding option is best suited to your business and result in an effective outcome. Waste no more time in finding a finance broking company as we are here to help. Expand and develop your business today, give us a call on 0203 473 3653 to discuss your circumstances, or if you would prefer to arrange a free, no obligation assessment, submit your details and complete our contact form.