{"id":15327,"date":"2021-04-26T13:38:12","date_gmt":"2021-04-26T13:38:12","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=15327"},"modified":"2021-05-11T13:57:16","modified_gmt":"2021-05-11T13:57:16","slug":"what-is-the-difference-between-a-secured-unsecured-business-loan","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/what-is-the-difference-between-a-secured-unsecured-business-loan\/","title":{"rendered":"What is the Difference Between a Secured & Unsecured Business Loan?"},"content":{"rendered":"
There are many times where a business might require a loan<\/a>, including starting the business, for growth or to manage during a challenging period. A loan can be a great way for a business to quickly receive a large amount of money, but it is important to be aware of the difference between a secured and unsecured business loan and to find the right option for your company and needs.<\/p>\n A secured business loan is one where the company will be required to back up the loan by security, which is usually a valuable asset or items that the business owns. This could include commercial property, vehicles, machinery or inventory. The benefits of a secured business loan<\/a> are that they are usually cheaper because there is less risk to the lender, but of course, it does mean that you are putting valuable assets up as collateral.<\/p>\n As you might expect, an unsecured business loan is simply one that is not backed up by an asset and instead by the company\u2019s trading position. This means that your business will need to be in a strong position in order to get approved for an unsecured loan and they are usually for smaller amounts and with a shorter repayment window. Unsecured loans are usually more expensive but they can be quicker and easier to arrange with less risk.<\/p>\n <\/p>\n In terms of identifying what the best option is for your business, you will need to consider the timeframe and the cost. If you want quick access to the money, you are willing to pay more and you have a good track record then an unsecured loan could be your best option. If you are looking for a larger loan and you have assets that you can put up as collateral then you might want to look into a secured loan.<\/p>\nSecured Business Loan<\/h2>\n
Unsecured Business Loan<\/h2>\n
Determining the Best Option<\/h2>\n