What is a secured business loan?
A secured business loan is a loan that you avail against a personal guarantee or by pledging an asset as collateral. For instance, to avail of a business loan against property, you must mortgage the real estate you own.
By providing a personal guarantor or collateral, you assure the lender of paying back the amount you borrow. If you cannot repay the sum, your lender is free to take legal options to recover their losses using the pledged asset or personal guarantee.
Since secured business loans reduce the lending risk, they are available at affordable interest rates and extended repayment durations.