QandAs: Loans

What is a Secured Small Business Loan?

Answer:
A Secured Small Business Loan is a type of loan

is secured by assets owned by the borrower, known as collateral. If the borrower stops making payments as scheduled, the lender can take possession of the collateral to help cover its loses.

Collateral for small business loans can include property, equipment, vehicles, inventory, and investments like stocks and bonds. Secured loans offer lower interest rates and longer repayment periods than unsecured small business loans , sometimes up to 30 years.

Your personal credit history and business plan are the two main factors lenders consider when issuing any type of business loan. If your credit score is low you may have to settle for a higher interest rate unsecured business loan. If you have a great credit history and available collateral you should consider a lower secured business loan.


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