Borrow more against your business assets

A secured business loan is a lump sum you borrow against something of value your business owns, repaid over an agreed term with interest. The security might be a specific asset such as plant, machinery, vehicles or commercial property, or it can be a debenture, a charge that sits over the general assets of the business. In many cases a director is also asked to give a personal guarantee, which sits behind the loan as a backstop rather than as the primary security.

Because the lender holds security, its risk is lower, and that is what tends to open the door to larger sums, longer repayment periods and keener pricing than an unsecured loan of the same size. The trade-off is straightforward and worth stating plainly: if repayments are not met, the lender can ultimately look to the secured asset to recover what it is owed, so the asset can be at risk. Understanding exactly what is being pledged, and to what value, is the single most important part of taking one on.

In practice the lender values the security, agrees a loan amount as a proportion of that value, and registers its charge, often at Companies House where a debenture or fixed charge is involved. You then draw the funds as a lump sum and repay on a fixed schedule. Capvant is a marketplace and introducer, not a lender, so the amount, the term, the rate and the final decision all sit with the funding partner you choose, subject to their approval.

The first thing a secured lender assesses is the security itself: what it is, what it is genuinely worth, how easily it could be sold, and whether anything else already has a claim over it. A newer, in-demand asset or clean commercial property supports a stronger offer than security that is hard to value or already carries an existing charge. Where a debenture is involved, the lender looks at the overall asset base of the business rather than one item.

Alongside the security, lenders still want to see that repayments can be met from ongoing trade, so your turnover, trading history and cash flow all matter. Recent accounts and bank statements usually do most of the work, and directors may be asked to stand behind the loan with a personal guarantee. Credit history is part of the picture without being the whole of it; comparing offers through a marketplace is a soft search that leaves no mark, and a full credit check only happens if you accept an offer and move forward.

The strongest applications pair good security with clear evidence of a business that can repay comfortably, so the two sides reinforce each other rather than relying on one alone.

• What is being pledged and its current market value
• Any existing charges or finance already secured on the asset
• Turnover, trading history and cash flow
• Whether a personal guarantee or debenture is offered
• Business and, where relevant, director credit profile

Secured lending typically takes a little longer to complete than unsecured borrowing, mainly because there is security to value and a charge to register. Straightforward cases with clean, easily valued assets and tidy accounts can move quickly, while property-backed lending or more complex security naturally takes more time to work through. Getting your paperwork ready early is the biggest thing within your control.

You can shorten the run-in by having recent accounts, up-to-date bank statements and clear details of the asset and any existing finance to hand before you apply. A soft-search comparison gives you an indicative view fast and with no impact on your credit score, so you can see what is realistic before committing to a full application. The formal steps then follow with whichever lender you choose to proceed with.

Exact timescales depend on the funder, the type of security and how promptly information is provided, and every timeline is subject to the lender's own process and approval.