There are many funders in the market place who will provide funding to your business by way of a secured loan, ranging from the major banks through to independent finance houses, specialist loan providers and lower tier lenders. There are a number of different factors that funders will take into account when ascertaining whether the lending opportunity meets their criteria and these will largely dictate which tier of funder will be most appropriate for your business and the associated cost of borrowing.
By the very nature of a secured loan, any funds advanced to your business would be subject to security being provided against one or more business assets. Typical security would include the business premises and other tangible assets such as plant, machinery and equipment.
Ultimately, the terms of the loan would be subject to the value and nature of the assets which are secured. At Harrisons our team will evaluate whether a secured loan is the right funding option to achieve your business goals and source the most appropriate funder for your circumstances.
In contrast to secured loans referred to above, unsecured loans do not require any collateral being offered up by the business in return for a funder providing a loan. This makes this type of borrowing very attractive to businesses which continue to grow and require funding quickly, who don’t have many assets to secure against or who are not able to offer their assets for security. Unsecured loans can be used for any purpose to benefit the business; examples frequently include meeting additional costs for expanding a product range, internal development such as hiring new employees, moving or improving premises and even assist to bridge short term funding gaps due to unforeseen circumstances.
The terms on which funding is offered will vary dependent upon the business trading history, financial information, credit worthiness, amount required and repayment period. As there is no security being provided to the funder, there is a greater emphasis placed on the trading performance of the business and its perceived ability to repay the loan. In some instances the funder may request a personal guarantee.
There is a range of funders who specialise in providing unsecured loans to businesses and our team has the knowledge, expertise and understanding to ensure the right provider is matched to each client.
For more information on the individual Secured and Unsecured Loan products or indeed any of our other products and services, complete the Get A Quote, Contact Form or email email@example.com. Alternatively simply telephone our national rate number 0845 601 5343 or contact your local Harrisons office, details of which can be found within the Contact Us section.