How are business loans secured?

Business loans are ‘secured’ against existing commercial assets. This could include machinery, vehicles or property. What this means is that should the borrower be unable to repay the amount owed, the lender can sell those items in order to recoup the money it is owed. An unsecured loan does not put your business assets at risk, however, they carry greater risk for the lender and so are likely to be more expensive.