Secured Business Loans

Looking to expand your business but struggling to raise the necessary funds?

Raise up to £500,000 today by using your asset as a security.

We’re not a bank. Our lending criteria is different, and we look at more than just your credit profile.

Don’t let a lack of funding hold your business back.

Check your eligibility online in just two minutes.

Customer excited for the next stage of his business growth with the help of our small business loan

Check Your Eligibility

In just 2 minutes with no impact on your credit score.

All Credit Profiles Considered

We may be able to help when other lenders may not

Fast, Convenient Application

Receive your funds in as little as 24 hours

Grow your business with Capify’s Secured business loan

Looking to expand your business but struggling to raise the necessary funds? Our business loan provides an excellent solution that can help you turn your plans into reality – whether they’re essential or ambitious. 

With our loan, you can access the capital you need to make key investments in your business, such as purchasing expensive equipment, placing large stock orders, or hiring new staff. The possibilities are endless, and it’s entirely up to you to decide how you want to use the funds to help grow your business. 

Our flexible financing options make it easy to get the money you need, when you need it, with repayment terms tailored to your business’s unique circumstances. Plus, with our competitive interest rates and transparent fees, you can be confident that you’re getting the best deal possible. 

Don’t let a lack of funding hold your business back. Contact us today to learn more about how our business loan can help you achieve your goals and take your business to the next level. 

Borrowing capacity

£75,000 to £500,000

Quick approvals

Same day approvals & funding possible in 24 hours

Secured business loan

Use your residential property as a security

Minimum paperwork

We only require minimum documentation to get you on your way

Easy Repayments

Fixed regular repayments that are easy on your cash flow


Fast and simple renewal process

Our secured business loan is the perfect way to get a quick cash injection.


Improve cash flow

Pay your bills or suppliers. Buy stock with ease regardless of seasonality or unpaid invoices.


Upgrade your business

Buy new equipment or renovate your store - Revamp your business!

Scale for growth

Hire more staff, invest in marketing or open a new store! Whatever your goals, we can help you reach them.

Tech & automation

Spend less time on the day-to-day admin and more time on the important things in life.

Tax bills

Unexpected tax payment due? Access funding quickly to settle any payments and avoid surcharges being added.

4 simple steps to get funded in 24 hours


Apply online

Simple application with no credit check for pre-approvals.


Talk to a human

Receive a solution tailored to fit your business needs.


Minimum documentation

Get verified and approved quickly with minimum docs.


Receive your funds!

Get cash straight into your account within 24 hours.

Apply online in minutes

Ready to get a solution tailored for your business?


What is a Secured Business Loan?

A secured business loan represents a robust financing option that necessitates borrowers to offer collateral, tangible or intangible assets owned by the business, as a protective measure against the loan amount.

This collateral may encompass various forms, such as real estate properties, cutting-edge equipment, valuable inventory, or substantial accounts receivable.

At Capify, we only accept residential properties as security against the loan amount.

By employing collateral, secured loans minimize the risk for lenders, significantly enhancing your prospects of securing the loan. Moreover, the security provided enables you to borrow larger sums of money over an extended period, all while relishing more favorable interest rates in comparison to unsecured loans.

Should your business aspire to flourish through expansion, be it investing in new equipment or augmenting your workforce, numerous banks and non-traditional lenders, specializing in alternative finance, stand ready to offer the financial support your business deserves. If you seek the stability of fixed monthly repayments within an agreed timeframe, a business loan, be it secured or unsecured, emerges as the optimal choice to propel your aspirations forward.

How do Secured Business Loans work?

The inner workings of secured business loans bear striking resemblance to most other forms of business lending. When entering into such an agreement, the lender consents to provide your business with a specified loan amount, taking into account your unique requirements and the level of security you can offer as a guarantee for the loan.

In contrast, unsecured business loans often have the loan amount determined based on a multiple of your annual business turnover, distinguishing them from secured loans.

The process of securing a secured business loan resembles that of applying for a mortgage and can span several weeks, contingent upon the complexity of your particular circumstances. During this time, the lender will evaluate the value of the assets you propose as collateral. Furthermore, if you opt to use property as security, it is likely that the lender will place a legal charge on the property as an additional safeguard.

Upon approval, you will receive the loan amount in the form of cash, allowing you to allocate the funds as needed. Subsequently, you will proceed to repay the loan through monthly installments within a predetermined time frame. Depending on the specific requirements of your business, you can choose between short-term loans or medium/long-term loans, commonly referred to as “term” loans.

In the unfortunate event that you encounter challenges in making the repayments, the lender may exercise their right to claim ownership of the assets pledged as security. By doing so, they seek to recover the funds lent to your business, utilizing the collateral as a means of repayment.


Mechanics of a Small Business Loan


Loan Application and Collateral

In this scenario, imagine applying for a loan amount of £300,000 while offering your property as collateral to secure the loan.

Application Assessment & Conditional Offer

Following a thorough evaluation of your application, the lender (Capify) extends a conditional offer, subject to an independent valuation to confirm the value and suitability of the property as security.

Upfront Fee

To account for the lender's expenses in valuing your asset (the property being used as a security) and any potential legal fees associated with placing a charge on the property, you provide an upfront fee.

Asset Valuation

Upon diligent examination, the lender determines that the value of your commercial property surpasses the loan amount, affirming its viability as collateral.

Interest & Repayment Terms:

In this example, the agreed-upon fixed interest rate is 7%. The loan is to be repaid over 12 months.

Total Interest Paid:

The total interest paid throughout the loan term would be £21,000 (calculated based on the interest rate and repayment term).

***It is essential to note that these figures are provided as an example to illustrate the mechanics of a secured business loan.
The actual interest rate, loan amount, and repayment term may vary based on individual circumstances and our other policies.



Reduced Interest Rates: A notable benefit of the secured business loan lies in the realm of interest rates. Through the provision of collateral, lenders perceive the risk involved to be significantly lower. This perception translates into lower interest rates, making secured loans a cost-effective financing solution compared to unsecured alternatives or other borrowing options. With reduced interest burdens, you can allocate more resources towards nurturing your business growth and achieving your aspirations.

Higher Borrowing Capacity: The amount you can borrow is often contingent upon the value of the assets offered as security. In some cases, you may even be eligible to borrow up to the full net value of these assets, providing greater access to funds for your business needs.

Extended Repayment Terms: Secured loans generally offer longer repayment periods, which translates to lower monthly payments. This allows for improved cash flow management, enabling you to allocate resources to business growth initiatives more effectively.

Flexible Credit History Requirements: Secured loans present a viable option for businesses with limited trading history or less-than-perfect credit history. The assets provided as collateral act as a form of guarantee for the lender, reducing the emphasis on traditional credit evaluation. However, lenders may consider any previous issues and may require a director’s personal guarantee as additional security.



Requirement for Business Assets: Secured loans necessitate having valuable assets within your business that you are willing to use as collateral. This requirement may not be suitable for all types of businesses, as not every enterprise possesses assets that can be leveraged for security.

Risk of Asset Sale: In the event of non-repayment, the lender has the authority to sell the assets provided as collateral to recoup the loan amount. It is essential to manage your loan responsibly to protect your assets from potential loss.

Upfront Costs: Securing a loan often involves upfront expenses, such as valuation fees and potential legal fees for placing a legal charge on your property. In certain circumstances, an unfavorable valuation outcome may result in a declined loan or a smaller loan amount, while you still incur the valuation fee.

Longer Processing Time: Secured loan applications typically undergo thorough due diligence processes, which may extend the time required to access funds. Compared to other financing options, the process can take weeks as lenders diligently complete their evaluations and assessments.

Consideration of Long-Term Costs: If you choose a longer-term loan, it is important to evaluate the overall cost of borrowing. While low-interest rates may initially seem appealing, it is crucial to consider the cumulative borrowing costs over the extended loan duration.


Are Secured Business Loans easier to get than Unsecured?


If we gauge “easier” in terms of accessibility, then the answer is affirmative, granted you possess assets to secure against the loan. From the standpoint of lenders, the emphasis on a commendable trading history or a pristine credit record diminishes, as the assets you offer serve as a guarantee.

While lenders do consider previous credit challenges, it is possible to overcome a poor credit history by showcasing a sustained period of growth. This aspect positions secured loans as an appealing option, particularly for startups lacking annual accounts or an extensive trading history, as well as for businesses grappling with a less-than-ideal credit profile.

To qualify for a secured business loan, your business must be registered within the UK for a minimum of three months and possess a high-value asset that can be pledged as security. Although the criteria for secured loans generally offer more leeway compared to unsecured lending, it’s crucial to note that requirements may vary among different lenders.

It is vital to acknowledge that although secured loans provide enhanced accessibility, it is crucial to understand that the notion of “easier” does not necessarily imply “quicker” in this scenario. When initiating an application for a secured loan, it is prudent to anticipate a potentially more extensive timeline, spanning several weeks, in comparison to secured lending or alternative financing options. This elongated process arises from the lender’s meticulous undertaking of valuations and, if deemed necessary, the arrangement of legal charges on property. However, take solace in the fact that these thorough evaluations and procedural requirements constitute integral aspects of securing the loan.

As you explore secured loans as a viable financing avenue, remember that their advantages lie in enhanced accessibility and the flexibility afforded by collateral. Taking into account the specific circumstances of your business, you can make an informed decision that aligns with your goals and financial requirements.

Capify’s qualifying criteria

To qualify for business finance from Capify, you need to:

Tick all of the boxes? Why not apply today and find out how much you can raise.

Why Choose Capify?

For over 15 years, we’ve helped thousands of businesses access the funding they need to grow and prosper. Many had previously been turned down by a traditional lender or asked to submit extensive applications before they would even be considered. 

Our lending is quick and straightforward. Just tell us about yourself and your business, and we can give you an instant decision. 

Fast and Convenient Funding

Get conditionally approved for a loan in just 60 seconds with our online eligibility checker, and funded in as little as 24 hours. There are no business plans or proposals to submit and no lengthy paperwork to complete. You can complete your online application quickly and easily in around 10 minutes.

Applications Assessed by People – Not Computers

Capify is not a bank and may be able to help you when a traditional lender might not. We look at different lending criteria and will consider all credit profiles, with every loan application decided by a human, not an algorithm.

Flexible Loans for Any Purpose

Get funding from £5,000 to £500,000 for any business purpose - from working capital or purchasing new equipment, to paying off your existing debts. Capify loans are repaid in small, manageable payments, rather than larger monthly repayments, to minimise the impact on your cashflow.

Small, Fixed Repayments to Manage Your Cashflow with Ease

Unlike a traditional lender, a Capify loan is repaid in regular instalments. This often makes it much easier to manage your cashflow than large, monthly repayments, or repayments which take a percentage of your daily turnover. Our team will work with you to create the best plan for your business.

Business loans

Business loans come in all sorts of guises, depending on what you’re looking for. You can have a loan ranging anywhere from £5,000 to £500,000. Understanding the different specific types of small business loans offered is essential, however, so you can make a more informed choice about what’s right for you. As with anything, there are benefits and drawbacks with each loan type. It’s all about establishing what you need and then finding the right loan to suit you. To do that, though, you need an understanding of the most common small business loans.

Unsecured small business loans

An unsecured loan, or unsecured lending, as the name implies, requires you to put no collateral or security up to cover the loan in the event of you defaulting on your repayments. The primary benefit of this is, of course, that you can get approved that much quicker and you don’t risk losing your property if you can’t repay the loan. 

The downside is that because there’s no security on the loan, it’ll be considered a much higher liability – this means you’ll face restrictions as to how much money you can borrow, and over what time period.

Secured small business loans

A secured loan will require you to put up some collateral or security. This is something that you own with a value similar to the value of the loan. 

In the event of you defaulting on the loan, the property will be taken and sold to cover what you owe. The benefit of this is that secured loans allow you to borrow more money, and the loan is not considered so much of a liability.

The main drawback is that if you don’t make your payments, you will lose your collateral.



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Secured Business Loan FAQs


A secured business loan is a way of businesses being able to borrow a sum of money by providing an asset as security, also sometimes known as collateral. The asset which is put forward as collateral in a secured business loan in the UK lowers the risk to the lender, especially when compared with an unsecured loan. This might enable a higher sum to be borrowed by the business. 

This is because if the business is not able to repay the loan, the lender can use the asset that was put up for security to recover the funds they are owed.  

Secured business loans can sometimes have several benefits in comparison to some other types of borrowing, depending on the individual circumstances involved, including: 

  • Larger sums are often available to borrow than would be with unsecured loans
  • Due to the lower risk to the lender, businesses with a poor credit history, or limited credit history, are often able to borrow through a secured loan when they may not be able to borrow through other means

Secured business loans work via an asset being put up for security for the borrowing, so that if the business is unable to repay the loan, the lender can use the asset to recover the money they lent. Repayments are made regularly by the business until the loan (including the interest charged on the sum borrowed) has been repaid in full. 

Once the secured business loan has been repaid in full, the lender will no longer have any claim on the asset that was put up for security. 

Businesses are often able to borrow more with a secured loan than with an unsecured loan, as the asset that the loan is secured on will lower the risk level for the lender; therefore, they are usually able to lend a higher sum.  

The actual sum that you can borrow will depend on the value of the asset(s) and the individual circumstances involved. The value of the asset will need to be higher than the sum you wish to borrow. The lender will evaluate your application and the value of the asset(s) and let you know how much you can borrow with a secured business loan. 

You can get an estimate of what you might be able to borrow using a specific asset as collateral by using our secured business loan calculator. 

At Capify, our secured business loans are secured on property which is owned by the business owners or guarantors. We also require personal guarantees from the major shareholders of the business for this type of loan.  

A personal guarantee is a legal agreement that the business owner or shareholder (known as the guarantor in this instance) will repay the loan if the business is unable to.  

The property that is put up for security must be: 

  • Registered UK company
  • The home address of the guarantor or a buy-to-let portfolio owned by the guarantor

Yes, if the business or the guarantor(s) are not able to repay the secured business loan, the lender can legally gain possession of the asset in order to recover the money owed for any outstanding debt.


At Capify, our eligibility criteria for our secured business loans are: 

  • The business must be a UK registered limited company or an LLP
  • The business must have been trading for at least 12 months 

As a secured business loan uses an asset as security for the sum borrowed, there is significantly less risk to the lender than with other types of borrowing. With an unsecured loan, for example, the lender has to rely heavily on the business’ credit history to assess the level of risk that they will repay the loan. With a secured business loan, the asset used as collateral mitigates much of that risk, along with the personal guarantee(s) of those involved in borrowing the money.  

At Capify, we treat each lending decision individually and look at a variety of different information. We understand that a credit history doesn’t always tell the full story of a business right now and we take circumstances, such as the challenges of recent years, into consideration.  

The typical interest rate for a secured business loan varies depending on factors like creditworthiness, loan amount, and other policies. 

The amount of funding you can receive with a secured business loan depends on the value of the collateral and your business’s financial health. 


The application process for a secured business loan typically involves submitting the required documents, such as financial statements and collateral information, to the lender. 


The time to get approved for a secured business loan varies among lenders but can take several days to weeks. The process is expedited considerably should you provide all the necessary information, including assurances on the asset you have offered as a security.

You can use the funds from a secured business loan for various business purposes, including expansion, purchasing inventory, or covering operating expenses. 

There may be fees and additional costs associated with a secured business loan, such as origination fees, appraisal fees, or closing costs. 


Alternatives to a secured business loan include unsecured loans, lines of credit, invoice financing, and equipment leasing. 

Unlike unsecured loans, secured business loans require collateral, providing the lender with a fallback option if the borrower defaults.

Yes, personal assets, such as personal property or real estate, can be used as collateral for a secured business loan. 

Yes, it’s possible to get a secured business loan for a startup or new business, especially if the borrower has valuable assets to use as collateral.