How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 6 options for you
Lender | Best for | Max loan amount | Min. credit score | Next steps |
---|---|---|---|---|
TAB Bank - Term loan with Fundera by Nerdwallet | Best for Bank secured business loans | $200,000 | 650 | with Fundera by Nerdwallet |
SBA 7(a) loan with Fundera by Nerdwallet | Best for SBA secured business loans | $5,000,000 | 650 | with Fundera by Nerdwallet |
Funding Circle - Online term loan with Fundera by Nerdwallet | Best for Online secured business loans | $500,000 | 660 | with Fundera by Nerdwallet |
Credibility Capital - Online term loan with Fundera by Nerdwallet | Best for Online secured business loans | $500,000 | 650 | with Fundera by Nerdwallet |
PNC Bank - Line of credit with Fundera by Nerdwallet | Best for Secured business lines of credit | $100,000 | 720 | with Fundera by Nerdwallet |
Triton Capital - Equipment financing with Fundera by Nerdwallet | Best for Secured equipment loans | $250,000 | 600 | with Fundera by Nerdwallet |
Our pick for
Bank secured business loans
with Fundera by Nerdwallet
TAB Bank - Term loan
with Fundera by Nerdwallet
$200,000
650
8.99-35.99%
Our pick for
SBA secured business loans
SBA 7(a) loan
$5,000,000
650
5.50-8.00%
Our picks for
Online secured business loans
Funding Circle - Online term loan
$500,000
660
10.13-36.00%
Credibility Capital - Online term loan
$500,000
650
6.99-24.99%
Our pick for
Secured business lines of credit
with Fundera by Nerdwallet
PNC Bank - Line of credit
with Fundera by Nerdwallet
$100,000
720
12.24-14.24%
Our pick for
Secured equipment loans
with Fundera by Nerdwallet
Triton Capital - Equipment financing
with Fundera by Nerdwallet
$250,000
600
4.99-25.00%
How Much Do You Need?
- Property: Both business and personal assets — like real estate, office or manufacturing equipment, cars, your home — can be used as collateral. Lenders may require an appraisal of your collateral to determine its value as part of the loan application process.
- Savings: You can use the cash in your bank account to secure a business loan. Some lenders may prefer cash, as it’s the most liquid type of collateral.
- Equipment: Equipment you already own can be used as collateral. However, you can also get self-securing financing, in which the equipment you’re looking to purchase serves as collateral on the loan.
- Invoices: You can use your outstanding customer invoices as collateral to get a cash advance from a lender. Also known as invoice financing, lenders advance you a percentage of your unpaid invoice amount, and when your customer pays the invoice, you receive the remaining percentage minus the company’s fees.
- Inventory: Similar to equipment, inventory can be used to secure a loan in two different ways. You can use existing inventory as collateral or you can get financing to purchase inventory to sell that is then secured by the products you purchase.
- Personal guarantee: A personal guarantee is a legal agreement that holds you personally responsible for your business’s debt and allows the lender to claim your personal assets to cover the debt in the event your business can’t pay.
- UCC lien: A UCC lien gives a lender the right to seize your business’s assets if you can’t repay your loan. A UCC lien is an official document, typically filed with the applicable secretary of state’s office after you’ve signed your loan agreement. Lenders may file a UCC lien on specific business assets such as equipment, or they’ll file a blanket lien, which covers all assets.
Pros
- Better loan terms. Pledging collateral mitigates risk for the lender and can help you access larger loan amounts, lower interest rates and longer repayment terms — especially if you have strong credit and business financials.
- Increased chances of approval. If you can offer collateral, you may be more likely to get approved for a business loan, even if you’re a newer business or don’t have a perfect credit history.
Cons
- Assets at stake. When you use your assets as collateral for a secured business loan, you risk losing them if you can’t repay your financing.
- Slow to fund. Secured business loans can be slower to fund than unsecured loans, especially if the lender requires an appraisal of your collateral.
Banks and credit unions
SBA lenders
Online lenders
To recap our selections...
Secured Business Loans: Compare the Best Options for 2022
- TAB Bank - Term loan: Best for Bank secured business loans
- SBA 7(a) loan: Best for SBA secured business loans
- Funding Circle - Online term loan: Best for Online secured business loans
- Credibility Capital - Online term loan: Best for Online secured business loans
- PNC Bank - Line of credit: Best for Secured business lines of credit
- Triton Capital - Equipment financing: Best for Secured equipment loans