Secured Business Loans

When businesses want to grow they often need to borrow money. They need cash to invest in new skills, new equipment and new ideas.

If your business owns assets, and in particular property, this can be useful when it comes to raising working capital through secured business loans. There are plenty of banks and other lenders willing to lend money against such security.

While these lenders want your business to do well, they also want the assurance that if you are unable to repay the loan, they can take possession of an asset. By selling it they can recover the money they are owed.

The Pros and Cons of Secured Business Loans

The advantages of secured business loans are:

  • The interest rates and charges may be lower.
  • You can borrow a large amount.
  • The lender will give you a longer time over which to repay.

However, a secured loan also has disadvantages:

  • If you are unable to make repayments, the assets used as collateral could be at risk.
  • The repayment terms are often inflexible.
  • They take longer to set up.
  • There could be a penalty for early repayment

Another Approach to Finance

If your organisation needs to find a way to borrow money but does not want to, or cannot, use assets as security for secured business loans, there are other options.

If your business offers credit terms to its commercial customers it has another asset against which it can borrow money – the sales ledger.

The balance on your sales ledger represents future cash that will be paid, usually in 30 to 90 days. Invoice Factoring allows you to borrow money against these invoices, often up to 90% of their value.

This is how Invoice Factoring works:

  1. You raise an invoice and send it to your customer and the lender.
  2. The lender pays you up to 90% immediately.
  3. When the customer pays, the lender gives you the outstanding balance, less any charges.

No assets are used as security and the amount you borrow is flexible. Another advantage of Factoring is the lender takes over your credit control administration, freeing you from a time-consuming administrative task.

Find out how much you could release from your sales ledger instantly online >>

Touch Financial Can Help You

We didn’t become the UK’s leading online commercial credit broker for nothing. We’ve matched thousands of organisations with the finance solution that met their needs.

Whether you’re looking for secured business loans or advice on Invoice Factoring, our team of experts are happy to help. Because we’re independent, we’re also impartial, so we’ll find the right match for your needs.

Our track record tells us that if you’re a UK business looking to raise finance, we’re the right people to get in touch with. Fill in one of our online quote forms or give us a call today.

Compare factoring quotes instantly online >>

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Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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