Quick answer: A secured business loan is funding backed by an asset — commercial property, equipment, vehicles, or other business assets — that the lender can rely on as security. Because the lender’s risk is lower, secured business loans can typically offer larger amounts, longer terms, and stronger rates than unsecured funding. New Heights Finance arranges secured business funding by matching your assets and needs to lenders on its panel.
Related: Unsecured business loans · Loans against property · Loans against assets
Key facts
| Security required | Business assets — commercial property, equipment, vehicles, or other assets the lender accepts |
| Typical term | Generally longer than a short-term or unsecured facility |
| Why choose secured | Access to larger amounts and often better terms, in exchange for offering an asset as security |
| Who arranges it | New Heights Finance, as a broker, across a panel of lenders |
What is a secured business loan?
A secured business loan is funding where the business (or its owner) pledges an asset — property, equipment, vehicles, stock, or another asset the lender accepts — as security for the loan. If the loan isn’t repaid, the lender has a legal claim over that asset. Because the lender’s risk is reduced, secured loans generally allow for larger amounts, longer repayment terms, and often more competitive rates than unsecured funding, where approval rests mainly on turnover and trading history.
This fits directly with how New Heights Finance is positioned: funding is arranged against your business’s assets or a confirmed pending payout, giving lenders the confidence to fund larger or longer-term needs.
How does a secured business loan work?
- You identify the asset you’re willing to offer as security — commercial or residential property, equipment, vehicles, or other qualifying business assets.
- New Heights Finance assesses your position — the asset, its estimated value, and your funding need — and matches you to lenders on its panel suited to that type of security.
- The lender values the asset (a valuation may be required, particularly for property) and assesses the application.
- If approved, funding is arranged against the asset, with terms set by the lender.
- You repay over the agreed term. The asset remains at risk if repayments aren’t met — this is the trade-off for the larger amount and stronger terms a secured facility can offer.
What can be used as security?
- Commercial or residential property — see loans against property
- Business assets and equipment — see loans against assets
- Vehicles — see loans against cars
- A confirmed pending payout (for example, a confirmed property sale or pension payout, in the personal and property bridging context)
Each asset type has its own process and lender panel — the pages above go into the specific detail for that security type.
Secured vs unsecured business loans
| Secured business loan | Unsecured business loan | |
|---|---|---|
| Security | An asset (property, equipment, vehicles) | May not require collateral; based more on turnover and trading history |
| Typical amount | Often larger, tied to asset value | Bounded by turnover and lender risk appetite |
| Typical term | Often longer | Often shorter |
| Speed to arrange | Can take longer where a valuation is required | Can often move faster with fewer steps |
Neither is universally “better” — the right choice depends on whether you have a suitable asset, how much you need, and how quickly you need it. See our unsecured business loans page for the full comparison.
Who qualifies for a secured business loan?
Because the loan is backed by an asset, lenders on NHF’s panel generally look at:
- The asset itself — type, condition, and estimated value
- Your ability to service the repayments (turnover, trading history)
- Clear ownership of the asset being offered as security
What does a secured business loan cost?
Rates and fees depend on the lender, the asset offered, the loan amount and term, and your risk profile. As a broker, New Heights Finance can lay out the options across its panel so you can compare total cost, not just the headline rate.
FAQs
Is a secured business loan cheaper than an unsecured one?
Often, because the lender’s risk is lower when an asset backs the loan, but this isn’t guaranteed — the actual rate depends on the lender, the asset, and your business’s profile. Compare offers rather than assuming.
What happens if I can’t repay a secured business loan?
The asset offered as security is at risk if repayments aren’t met, which can include the lender taking legal steps to recover the debt through that asset. This is a serious commitment and should be weighed carefully before pledging an asset.
Can I get a secured business loan with bad credit?
It’s often more achievable than an unsecured loan with a weaker credit record, because the asset reduces the lender’s risk, but it isn’t automatic. No approval is guaranteed.
What assets can I use for a secured business loan?
Commercial or residential property, business equipment, vehicles, and other qualifying assets are commonly accepted, depending on the lender.
Does New Heights Finance lend the money directly?
No. New Heights Finance is a broker and arranges secured business funding by matching applications to lenders on its panel.
Have an asset to offer as security? Apply now for a loan against your property or loan against your assets