Secured Business Loans
Unlocking Capital with Confidence
At Pinks Asset Finance, we understand that sometimes, to move your business forward, you need a financial boost that’s both substantial and secure. Secured business loans offer a reliable way to access larger sums of capital by leveraging your assets, providing the stability and flexibility your business needs to thrive.
What Is a Secured Business Loan?
A secured business loan is a financing option where you use assets—such as property, equipment, or other valuable holdings—as collateral to secure funding. This collateral reduces the lender’s risk, often resulting in more favourable terms for you, including lower interest rates and higher borrowing limits.
How Does It Work?
- Application: Provide details about your business, the amount you wish to borrow, and the assets you intend to use as collateral.
- Valuation: The proposed collateral is professionally appraised to determine its value.
- Approval: Based on the valuation and your business profile, loan terms are proposed.
- Funding: Upon agreement, funds are disbursed, and you begin your repayment schedule as outlined.
Why Choose a Secured Business Loan?
- Higher Loan Amounts: The value of your collateral can allow you to borrow more than with unsecured loans.
- Lower Interest Rates: Reduced risk for lenders often translates to more competitive rates for you.
- Flexible Terms: Secured loans can offer longer repayment periods, easing cash flow pressures.
- Accessible to Various Credit Profiles: Even if your credit history isn’t perfect, the presence of valuable collateral can enhance your eligibility.
Smart Business Financing, Simplified by Pinks
Costs to Consider
Interest rates for secured business loans typically range from 2% to 24% above the base rate annually, influenced by factors such as:
- The quality and value of the collateral.
- Your business’s financial health and credit history.
- The loan amount and repayment term.
Additional costs may include valuation fees, legal fees, and arrangement fees, depending on the lender’s terms.
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Costs to Consider
Interest rates for secured business loans typically range from 2% to 24% above the base rate annually, influenced by factors such as:
- The quality and value of the collateral.
- Your business's financial health and credit history.
- The loan amount and repayment term.
Additional costs may include valuation fees, legal fees, and arrangement fees, depending on the lender’s terms.