ASSET FINANCE
Secured Loans.
A secured business loan is a financing option that allows businesses to borrow funds by pledging assets, such as property, equipment, or inventory, as collateral. This security helps lower the risk for lenders, which can lead to more favourable interest rates, higher borrowing limits, and longer repayment terms compared to unsecured loans.
How It Works?
Debt Consolidation
Short-term lending has grown in popularity as traditional lenders have become more cautious, but this trend has created cash flow challenges for many businesses. Debt consolidation is a common solution, enabling businesses to refinance their short-term debts, ease cash flow pressures, and regain financial stability. By consolidating multiple high-interest loans into a single, manageable payment, businesses can streamline their finances and move forward with a fresh start.
Cashflow
In the past five years, businesses have encountered numerous challenges, and most unsecured lenders now decline financing if any directors have been involved in a previous liquidation. However, secured lenders typically do not consider this a disqualifying factor, as the collateral provided reduces their risk. This makes secured financing a viable option for businesses seeking funding despite a history of liquidation among their directors.
Loan Term
0 - 120 months
Unsecured funding is becoming more difficult to obtain, longer-term secured loans are emerging as a practical alternative. These loans allow businesses to spread payments over an extended period, resulting in lower monthly costs. This structure frees up valuable cash flow, providing businesses with greater working capital to invest in growth and daily operations, while the secured nature of the loan makes lenders more inclined to approve financing.
The Process
1
Indicative Quote
This initial quote provides an estimate of the loan terms, typically 95% accurate, giving you a clear idea of potential costs and conditions based on preliminary information.
2
Submit your application
Once you decide to proceed, you'll formally submit your application, along with required documents to confirm income, credit status, and property details.
3
Underwriting
The lender’s underwriting team thoroughly reviews your application, assessing risk, affordability, and other eligibility criteria to ensure it meets loan requirements.
4
Property Valuation
A professional valuation of the property is conducted to verify its worth, as it serves as collateral for the loan, helping determine the loan amount and terms.
5
Legal Work
Solicitors handle the legal aspects, including drawing up loan documents and registering a charge on the property, ensuring compliance with all legal requirements.
6
Deal Funded
Once all stages are complete, funds are disbursed to you or directly to the intended recipients, marking the final stage of the loan process.
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