Best Secured Business Loans

Best Secured Business Loans at a Glance

• Best for established businesses with property: High-street banks (HSBC, Barclays, NatWest, Lloyds) — lowest rates, highest amounts, require 2+ years trading
• Best for specialist secured lending: Shawbrook Bank and Allica Bank — accept 12 months trading, more flexible underwriting on complex security
• Best for debenture security (no property charge): Fleximize — floating charge over business assets, faster than property-backed products
• Key threshold: Most secured lenders require 2 years trading; specialist lenders accept from 12 months
• Rate range: Broadly 5–10%+ APR depending on LTV, security type, and borrower profile
• Key fact: Secured means a charge is registered against a specific asset — property or equipment. If you default, the lender can enforce against that asset. Secured is not inherently safer for the borrower.

Secured Business Loan Providers Compared

Loan ranges, LTV caps, and rate indications are broadly representative. Rates are quoted on application and depend on credit profile, security quality, and trading history. Verify directly with each lender.

Our Top Picks

Best Overall for Established Businesses: High-Street Banks

For businesses with 2+ years trading, clean credit, and unencumbered commercial or residential property, high-street banks offer secured business lending at the most competitive rates available in the UK market. HSBC, Barclays, NatWest, and Lloyds all offer property-secured facilities with rates that reflect their lower cost of capital. The process is thorough and slower than specialist lenders, but for the right business profile the rate differential over the term is substantial.

Best for Specialist Secured Lending: Shawbrook and Allica

Shawbrook and Allica both accept businesses with 12 months of trading — lower than the high-street 2-year threshold — and apply more flexible underwriting on complex security structures. Both are FCA-authorised and FSCS-protected. For businesses that cannot meet high-street bank eligibility but have solid commercial property security, these are the strongest realistic alternatives.

Best for Debenture Security (No Property Charge): Fleximize

Fleximize uses a debenture — a floating charge over the business’s assets as a whole — rather than a charge over a specific property. No property valuation is required, which makes the process significantly faster than property-backed secured lending. The rate is higher than a property-secured equivalent, but the trade-off is speed and the absence of a property charge. For businesses with 12+ months trading that want secured access to capital without putting property at direct risk of formal enforcement, Fleximize is a credible option.

HSBC, Barclays, NatWest and Lloyds

The four major high-street banks offer secured business lending through their business banking arms. The products vary in detail but share a common structure: a first or second charge over commercial or residential property, with LTVs typically capped at 70%, and rates that sit at the lower end of the market for qualified borrowers.

Loan ranges. HSBC and Barclays lend into eight figures for larger business lending; NatWest and Lloyds are similarly sized. For most SMEs, the relevant range is £50,000 to £5,000,000. Below £25,000 secured lending is rarely economic given legal and valuation costs.

Rates. Published rate cards for secured business loans are not standard at high-street banks — rates are quoted on application based on security quality, LTV, trading history, and creditworthiness. Indicatively, rates run from the mid-single digits for strong profiles at low LTVs to mid-to-high single digits for more complex applications.

Process and timeline. Expect 4–8 weeks from application to funding. Property valuation (1–3 weeks), legal work (2–4 weeks running concurrently), and credit committee review all add to the timeline. The process is slower than fintech alternatives but the rate differential is typically worth it for amounts above £150,000 over longer terms.

Eligibility. All four banks strongly prefer — and in most cases require — existing business banking customers. Minimum 2 years trading with filed accounts is the standard threshold. A director with adverse credit can affect the application regardless of the business’s trading performance.

Shawbrook Bank

Shawbrook is a specialist bank with a focused appetite for SME secured lending against commercial property. Its published LTV cap is 75% — higher than the standard 70% at most high-street banks — and it accepts businesses with a minimum of 12 months trading.

Shawbrook lends from £50,000 to £5,000,000 on commercial property security, covering owner-occupied and investment properties. Rates from 5.24% are published for commercial property lending, with the actual rate depending on LTV, property type, and borrower profile. For applications in the £150,000–£1,000,000 range from businesses under 2 years old, Shawbrook is frequently the most accessible specialist route.

Commercial mortgages and secured business loans at Shawbrook are strictly unregulated by the FCA — this is standard for commercial lending and means the FCA’s mortgage conduct rules do not apply, but the lender remains authorised for other regulated activities.

Allica Bank

Allica Bank is a challenger bank that has established itself in the SME secured lending market with a relationship-managed model. It lends from £150,000 to £10,000,000 on commercial property, with LTVs up to 75% for investment properties and up to 80% for owner-occupied premises.

Allica publishes indicative rate ranges of 5-year fixed rates between 6.00% and 9.00%, with variable rate margins of 2–5% above base rate. It is FCA regulated and accepts businesses with 12 months of trading. For mid-market SMEs that want a commercial bank relationship without the minimum-customer-tenure requirement of the high-street banks, Allica is one of the stronger options currently available.

Fleximize

Fleximize offers secured business loans using a debenture structure — a floating charge over the business’s assets as a whole rather than a fixed charge over a specific property. Loan amounts run from £10,000 to £500,000 over terms of 1 to 60 months.

The key advantage over property-secured products is speed: no property valuation is required, and applications can progress in days rather than weeks. Early repayment is available without penalty. Fleximize requires a minimum of 12 months trading and is FCA regulated.

The debenture structure means the lender has the ability to appoint an administrator over the business’s assets if the loan defaults — a different but still material form of risk compared to a property charge. Understand the enforcement mechanism before signing.

What Secured Business Loans Really Cost

Interest Rates and the LTV Effect

The rate you receive on a secured business loan is directly linked to the loan-to-value (LTV) — the loan amount expressed as a percentage of the security’s value. A £200,000 loan against a £400,000 commercial property is 50% LTV. Most lenders cap secured business loans at 70–75% LTV. Below 60% LTV, rates are typically at the lower end of the lender’s range. Above 70%, rates rise and lender appetite narrows.

The rate saving from secured lending is most meaningful on larger amounts over longer terms. On a £50,000 loan over 12 months, the difference between a secured rate of 5% and an unsecured rate of 9% is approximately £2,000. On a £500,000 loan over 5 years, the same rate differential is approximately £57,000. The calculation changes significantly with loan size and term.

Fees and Legal Costs

Secured business loans carry arrangement costs that unsecured loans do not. Before committing, factor in:

• Valuation fee: £300–£1,500 depending on property type and value, typically paid upfront by the borrower
• Legal fees: Both the borrower’s solicitor and the lender’s solicitor charge fees for the charge documentation. Budget £1,000–£3,000 for a standard property charge
• Arrangement fee: Typically 1–2% of the loan amount, sometimes added to the loan
• Land Registry registration fee: A small fixed fee for registering the charge

These costs are material on smaller loans. For a £100,000 loan, total arrangement costs of £3,000–£5,000 represent 3–5% of the advance — comparable to or exceeding the rate saving versus unsecured. At £500,000, the same fixed costs are 0.6–1.0% of the advance, and the rate saving becomes the dominant factor.

First Charge vs Second Charge

A first charge gives the lender priority over the security — if the property is sold to repay debt, the first charge lender is paid first. A second charge sits behind an existing first charge mortgage. Second charge rates are higher than first charge rates, and the first charge lender’s consent is typically required before a second charge can be placed. If you have an existing mortgage on the security property, clarify whether a first or second charge is being offered and what the first charge lender’s position is.

Eligibility: What Lenders Look For

Trading History and Accounts

High-street banks require a minimum of 2 years trading with filed accounts. Specialist lenders (Shawbrook, Allica, Fleximize) will consider businesses with 12 months of trading. Below 12 months, secured business lending from most mainstream routes is not accessible — the exception is secured bridging finance, which has different criteria.

For property-secured loans, lenders assess the business’s ability to service the debt from its trading income. Two to three years of profitable trading history with audited accounts is standard for bank underwriting. Challenger banks may work with 12–18 months of management accounts for qualifying applications.

Security Requirements

Commercial property is the most common and widely accepted form of security. Residential property (owned by a director) is also accepted by most lenders. Mixed-use properties (part commercial, part residential) are assessed on their specific characteristics. Specialist properties — hotels, care homes, petrol stations — have a narrower lender market and often attract LTV caps below the standard 70–75%.

Property must be free of encumbrances or have sufficient equity to support the charge at the required LTV. Joint ownership of security property typically requires the co-owner’s consent for a first charge.

Credit Profile

Personal credit is checked for all directors. A CCJ, a recent missed payment history, or a credit score below a lender’s threshold affects the outcome even where the security quality is strong. Specialist lenders are more flexible than high-street banks on adverse credit, particularly where security is sufficient to offset the credit risk. The older and more resolved the adverse item, the less weight lenders typically give it.

How to Choose the Right Secured Business Loan

Choose a high-street bank if your business is established with a clean credit profile

If your business has 2+ years of filed accounts, a clean credit record, and a banking relationship with one of the major banks, start with your existing bank. The rate saving from secured lending is most meaningful over longer terms and larger amounts, and high-street banks offer the most competitive secured rates for qualified borrowers. The slower process (4–8 weeks) is the primary trade-off.

Choose Shawbrook or Allica if your business is under 2 years or you need specialist underwriting

For businesses with 12 months of trading, complex ownership structures, or security that high-street banks might not accept straightforwardly (e.g., semi-commercial property, mixed-use assets), Shawbrook and Allica apply more flexible underwriting. Both offer competitive rates for their market position and are FCA-authorised. Allica’s relationship-managed model suits businesses that want active lender support; Shawbrook’s product is more standardised.

Choose Fleximize if you want secured access without a property charge

If your business has assets but not property — or if you want secured access to capital faster than a property valuation allows — Fleximize’s debenture model is the realistic alternative. The rate is higher than property-backed products, but the process is faster and does not require property valuation or a formal charge on a specific asset. Use it for shorter-term needs where the speed premium over a property-backed route is justified.

Use a broker for amounts above £250,000 or complex security structures

A commercial finance broker can access the full market — including specialist secured lenders who do not advertise directly — and match your application to lenders most likely to approve at a competitive rate. Brokers are typically paid by the lender on completion. For complex security structures, properties in non-standard sectors, or borrowers with adverse credit, broker access to the whole market is materially more efficient than direct applications to individual lenders.

Frequently Asked Questions

What can I use as security for a secured business loan?

Commercial property is the most common form of security. Residential property owned by a director is also widely accepted. A debenture — a floating charge over the business’s assets — is used by some lenders as an alternative to property. Specific equipment or vehicles can serve as security in asset finance structures. The lender’s appetite for different security types varies; confirm what is accepted before applying.

What happens to my property if I default on a secured business loan?

The lender has the right to enforce the charge and take possession of the property. Before reaching that point, most lenders follow prescribed processes — arrears notices, time to cure, and formal demand. Property repossession is a last resort and requires court action in most circumstances. FCA-authorised lenders must follow regulated arrears procedures. Check the regulatory status of any secured lender and understand the enforcement mechanism before proceeding.

What is LTV and why does it affect my rate?

Loan-to-value (LTV) is the loan amount expressed as a percentage of the security’s value. A £200,000 loan against a £400,000 property is 50% LTV. Lower LTV means the lender has a larger equity buffer if they need to sell the security — which reduces their risk and typically produces a lower rate for the borrower. Most lenders cap at 70–75% LTV for secured business loans.

What is the difference between a first charge and a second charge?

A first charge gives the lender priority over the security — they are paid first if the property is sold to settle debts. A second charge sits behind the first charge lender in priority. Second charge secured loans carry higher rates than first charge equivalents, and the first charge lender’s consent is typically required before a second charge can be placed. If you have an existing mortgage on the security property, a new secured business loan will typically be a second charge unless you refinance.

How long does a secured business loan take to arrange?

Typically 3–8 weeks for property-secured loans: 1–3 weeks for valuation, 2–4 weeks for legal work running concurrently, plus credit approval. Fleximize’s debenture product can progress in days as no property valuation is required. If speed is critical, debenture-secured lending or unsecured lending is usually the faster route.

Is a personal guarantee still required on a secured business loan?

Usually, yes. A charge over a specific asset and a personal guarantee are separate mechanisms. Many lenders take both — the charge provides asset security, the personal guarantee provides recourse against the director if the asset’s sale does not cover the full debt. Check every offer for both a security charge and a personal guarantee clause.

How We Reviewed Secured Business Loan Lenders

We compiled this guide from published lender product pages, product terms, and eligibility criteria as of April 2026. Provider rate indications are broadly representative — secured business loan rates are not published as fixed rate cards and are quoted on application based on individual circumstances. We have not used affiliate comparison sites, aggregators, or brokers as source data. All figures are from primary lender sources or published product descriptions.

Providers were assessed on: published loan range and maximum LTV; security types accepted; minimum trading history requirements; FCA authorisation status; rate transparency; and typical funding timeline. We update this guide when any provider changes its published terms, rate indications, or eligibility criteria.

This is editorial guidance, not regulated financial advice. Secured business lending involves formal charges over assets — review all terms with a solicitor before proceeding. We have no commercial relationship with any lender named in this article.