Tide Funding Options
Allica Bank Commercial Mortgage
Shawbrook Commercial Mortgage
Lloyds Commercial Mortgage
Together Commercial Finance
Aldermore Commercial Mortgage
How Secured Business Loans Work
Loan Amounts, Terms and What You Borrow Against
You secure the loan against an asset the lender can sell if you default, usually commercial property, sometimes plant, machinery or stock.
That security is why you can borrow from £25,000 into the tens of millions, and spread repayment over terms up to 30 years on a commercial mortgage.
Spread over 25 years, your monthly cost drops sharply. That’s the real draw for cash flow.
Secured vs Unsecured and How the Charge Works
If you run a limited company, the lender registers a charge over your premises at Companies House within 21 days, and usually asks for a personal guarantee on top.
A fixed charge ties a named asset; a floating charge covers shifting stock and cash, and we have seen it crystallise the day a business defaults.
Unsecured doesn’t mean risk-free; a guarantee still puts your home on the line. That’s the catch.
How Secured Loans Fund and Repay
You won’t get the money the same week. A secured deal runs 4 to 8 weeks because your valuation, legal searches and charge registration all take time.
Picture your accountant emailing the management accounts to the lender on a Friday while you wait on the valuation.
Secured Business Loan Costs and Fees
Interest Rates and Representative APR
You’ll pay 6% to 10% APR on a secured loan, well below the 8% to 15% of an unsecured high-street loan and a fraction of alternative lenders’ 15% to 50%.
The Bank of England base rate sets the floor at 3.75%, and variable secured pricing adds a margin of 2% to 5.5% on top.
Shawbrook starts from 5.24% on its strongest investment cases, and we found Together, lending on tougher profiles, starts from 8.84%.
Cheaper money is the whole point of putting up security, and it’s why we rank the cheapest lenders top. That’s what you’re paying for.
Fees and the Total Cost of Borrowing
Your headline rate isn’t the whole bill. Expect an arrangement fee of 1% to 2%, plus a RICS valuation and legal fees you pay whether or not the loan completes.
On a £500,000 deal a 1.5% arrangement fee is £7,500, before you add the valuation and legals.
Those abortive fees are the sting if a deal collapses late. That’s money you don’t get back.
Early Repayment Charges and Other Costs
If you repay a fixed-rate loan early, you usually face an early repayment charge of 1% to 5%, tapering year by year over the fixed period.
Clear a £200,000 balance in year one at 5% and that’s £10,000 to walk away. Variable and tracker deals usually skip the penalty.
Eligibility for Secured Business Loans
Trading History and Time in Business
Lenders want to see you can service the debt, so most ask for two to three years of filed accounts before they look at your application.
A pre-revenue startup will struggle here. The asset helps, but in our reviews we still see lenders underwrite cash flow, not just collateral.
Picture your accountant exporting the year-end accounts for the underwriter while you wait on a decision.
Credit Score, Affordability and Financial Health
Your credit file still matters on a secured deal, but a clean record is less decisive than it is unsecured because the asset carries the risk.
You’ll be stress-tested on affordability through a debt-service coverage ratio, with lenders wanting at least 1.25x cover and treating 1.5x as strong.
Strong cover unlocks the best LTV and rate. That’s what you’re really judged on.
Security and Personal Guarantees on Secured Loans
Expect to give a personal guarantee on top of the charge if you trade as a limited company, so your own assets back the debt too.
Shawbrook caps some guarantees at 25% of the loan; others ask for more, so check the cap before you sign.
How to Compare Secured Business Loan Lenders
Comparing Lenders by Cost
If cost is your priority, compare the true total: your rate, the arrangement fee and any early repayment charge across the full term, not just the headline APR.
You’ll find Shawbrook and the high-street banks price lowest for clean, strong cases, while the specialists we rate cost more but say yes more often.
Comparing Lenders by Speed and Approval
If you need certainty fast, Allica returns a decision in principle the next working day, which tells you early whether your application is viable.
You’ll find high-street banks slower and stricter, while a specialist moves quicker on a complex or adverse-credit case.
Choosing by Loan Size, Term and Flexibility
When we match a lender to your deal size, Lloyds and Together suit mid-sized deals from £25,001 to £5 million, while Aldermore handles corporate facilities up to £100 million.
The right lender fits your case, not the biggest name. That’s the call that saves you money.
Who Secured Business Loans Are Best For
Best for Buying Premises with a Secured Loan
If you’re buying the premises you trade from, a secured commercial mortgage is usually your cheapest route to that much capital.
Allica’s 80% LTV means a smaller deposit, so you keep more cash in the business. Allica is the specialist we rate most highly for owner-occupiers.
Best for Complex or Adverse-Credit Secured Loans
If a high-street bank has turned you down, a specialist like Together or Shawbrook weighs the asset and the story, not just your credit score.
Picture your accountant emailing three years of accounts to a specialist underwriter on a Friday while you wait to hear if the case stacks up.
When a Secured Loan Is Not the Best Fit
If you need money this week or only a small sum, an unsecured loan or invoice finance will beat the slow, fee-heavy secured route.
Speed beats security when the amount is small. Bridging suits a short asset-backed gap, and asset finance suits buying equipment outright.
Frequently Asked Questions
What is a secured business loan?
A secured business loan is borrowing backed by an asset the lender can sell if you default, usually commercial property, sometimes machinery, vehicles or stock. The security lowers the lender’s risk, so you get a lower rate, a larger sum and a longer term than an unsecured loan.
How much can you borrow with a secured business loan?
It depends on the asset and your affordability. High-street lenders start from £25,000, and specialists scale to £35 million (Shawbrook) or £100 million (Aldermore). You can usually borrow up to 70% to 80% of commercial property value, less against machinery or stock.
Can you get a secured business loan with bad credit?
Often, yes. Because the asset carries the risk, specialists such as Together weigh a satisfied default or past CCJ far more kindly than active arrears. Expect a higher rate and a lower LTV, sometimes capped at 50% to 60%, to build in a bigger equity buffer.
How long does a secured business loan take?
Typically 4 to 8 weeks. The RICS valuation, legal due diligence and registering the charge all take time, which is why secured lending is slower than an unsecured loan that can fund in days. A specialist lender will usually move faster than a high-street bank.
Do you still need a personal guarantee on a secured loan?
Usually, if you trade as a limited company. Most lenders take a personal guarantee on top of the asset charge, so they can pursue your personal assets if the sale of the security falls short. Shawbrook caps some guarantees at 25% of the loan; others ask for more.
What happens if you cannot repay a secured business loan?
The lender can enforce its charge and sell the secured asset to recover the debt, which may mean losing your business premises. If a personal guarantee is in place and the sale falls short, the lender can also pursue your personal assets for the balance.
How We Reviewed Secured Business Loan Lenders
Ranking criteria. We ranked lenders on rate, maximum LTV, loan size, speed and how flexibly they handle complex or adverse cases. Cost and LTV carry the most weight because they decide whether a deal is affordable and whether you can raise enough.
Data sources. Rates, LTV ceilings and loan limits were checked directly against each lender in June 2026: Allica, Shawbrook, Together, Aldermore and Lloyds. No comparison sites and no press releases.
Update cadence. We re-verify every lender on this page at least monthly, and whenever a lender changes pricing, LTV or terms. The verification date reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.
Regulatory note. This is editorial content, not regulated financial advice. Lending to limited companies is generally unregulated. Credit is subject to status and approval; compare offers directly with lenders before you apply.