Looking for an easy way to calculate secured business loan repayments? Here at Business Expert our job is to make it as easy as possible for you run your business life. As such we’ve created this handy secured business loan calculator.
Enter your figures and get the results in a single click.
How to use our Secured Loan Calculator
Simple input the percentage interest the provider has offered you, as well as the loan duration, and you have an easy way to see if the repayments are going to be affordable for you.
Remember, it’s not just the APR which is the deciding factor. Make sure you check the fine print of any potential loan to understand if there are hidden fees or early exit penalties.
Calculate Your Loan Repayments
What is a Secured Loan?
A secured loan simply means that the borrower signs a document giving the financial provider a ‘charge’ or legal right to an asset should there be a default on repayments.
It is wise to think carefully about your ability to repay a loan, by using a calculator such as the one we’ve created above, before taking out any kind of secured finance.
Are Secured Loans Easier to get?
Secured loans are generally easier to get than unsecured for the simple reason that you’re offering the lender a strong back up should you fail to make your repayments.
Especially if you’re a new business, or one with imperfect credit history, gaining a secured loan for anything but small amounts is going to be near impossible without collateral of some kind.
Whether you’re offering security in the form of a significant corporate asset, or a personal guarantee on a family house, lenders offer better rates and a higher approval rate when they know they stand a minimal chance of losing their capital.
What Credit Score do you Need for a Secured Loan?
While this is a common question, it’s a difficult one to answer succinctly because there are so many factors at play.
The more you’re asking for, the more rigorously lenders are going to investigate their potential level of risk.
As a starting point, a good business credit score will be 80/100 so, to get the optimum rates, this is where you’ll need to aim.
An adequate credit score would run from about 50/100 to 80/100.
Below this you would be classified as higher risk and, though there are lenders who will still finance your loan, the rates will be consequently higher.
What can be Used as Collateral for a Business Loan?
While property is perhaps the most common source of collateral, lenders are open to a variety of sources. These may include:
- buildings
- manufacturing equipment
- vehicles
- inventory
- cash
- land
- investment accounts
- valuables such as fine art
Business Loan Secured by Residential Property
Many businesses simply don’t have the commercial assets available to secure the finance they need. In this situation, it is possible for one or more of the company directors to offer their own asset, usually a family house, as a personal guarantee.
Personal guarantees are designed to breach the corporate veil meaning that, if the company becomes insolvent, the normal distinction between personal and business assets no longer applies.
Personal guarantees are commonplace but it’s vital to understand, if you’re considering signing one, what the implications will be should your business become insolvent.
Compare Secured Loan Providers
Here are Business Expert, we offer whole of market access in a few simple clicks. Simple enter your details below to receive a range of quotes for the finance you need. Our introducer service is completely free, nor will it impact the quote you receive.
Simple, fast, funded.