Business Loans
There are two types of business loan - secured and unsecured. Variations including bridging loans and start up loans are based on one of the types. Here’s the difference between the two.
Unsecured Loans
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An Unsecured Business Loan does not require the borrower to provide collateral or security to the lender.
Key Facts
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An unsecured loan lands as a lump of cash (cash flow injection) into the business bank account and is repaid over the agreed term.
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This form of funding can be turned around very quickly. Dependent on the size of the loan and the health of the company we can get an instant decision, typical decisions can take 24-48 hours.
Secured Loans
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A Secured Business Loan requires the borrower to provide collateral or security to the lender.
Key Facts
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This collateral can be in the form of an asset such as real estate, equipment, or inventory.
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By providing an asset as security, this reduces the risk to the lender, making interest rates and repayment terms more competitive and favourable versus unsecured business loans.
Variations
Start Up Loans
A startup loan is tailored financing for new businesses, providing essential capital for initial expenses. Offering flexibility and competitive rates, these loans support early-stage ventures in covering costs such as product development, marketing, and operations, fostering growth and sustainability.