Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
---|---|---|---|---|---|---|---|
with Fundera by NerdWallet | Read expert review | Best for large loan amounts | $5,000,000 | 24 months | 10.5% | Up to 25 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for bad-credit borrowers | $50,000 | Undisclosed | 8% | Up to 7 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for buying equipment | $250,000 | 24 months | 6.5% | 12 months to 5 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for Fast financing | $500,000 | 24 months | 15.22% | 6 months to 7 years | with Fundera by NerdWallet |
![]() | Read expert review | Best for flexibility | $1,000,000 | 24 months | 8% | 12 months | |
![]() | Read expert review | Best for best interest rates | $250,000 | 24 months | Undisclosed | Up to 5 years |
best secured business loans: More details
U.S. Small Business Administration: Best for large loan amounts
The SBA 7(a) loan offers funding up to $5 million for working capital, business expansion and more. You’ll typically need to provide collateral for loans greater than $50,000.
SBA 7(a) loan
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Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
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U.S. Small Business Administration: Best for bad-credit borrowers
Although requirements vary based on the lender, many SBA microloan intermediaries will require you to provide some form of collateral. You may be able to qualify, however, with a credit score of 620 or higher.
SBA microloan
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Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
Pros
- Can be used for a variety of funding purposes.
- Designed to finance traditionally underserved businesses.
- Startups and business owners with bad credit may be able to qualify.
- Competitive interest rates, low fees and long repayment terms.
- Intermediaries typically offer business training and educational resources.
Cons
- Loan amounts max out at $50,000.
- Can’t be used to pay existing debt or purchase real estate.
- Collateral is likely required.
- Slow funding timeline.
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Triton Capital: Best for buying equipment
With Triton Capital’s equipment financing, the equipment you purchase serves as collateral on the loan.
Triton Capital - Equipment financing
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Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
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iBusiness Funding: Best for Fast financing
You may need to provide personal or business assets to secure one of these online loans. iBusiness Funding can issue funds in as little as two days.
iBusiness Funding - Online term loan
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Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
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Wells Fargo: Best for flexibility
This Wells Fargo line of credit is a good option for small-business owners with established companies who want the ability to cover emergency expenses, seize business opportunities and more. You must secure your credit line with business assets.

Wells Fargo Prime Line of Credit
Pros
- High maximum credit line amount.
- Competitive interest rates and repayment terms.
Cons
- Can’t apply online.
- Origination fee charged at opening and annual renewal.
Pros
- High maximum credit line amount.
- Competitive interest rates and repayment terms.
Cons
- Can’t apply online.
- Origination fee charged at opening and annual renewal.
Bank of America: Best for best interest rates
Bank of America offers secured business loans with competitive rates and terms. You can secure your loan with business assets or certificates of deposit.

Bank of America Business Advantage Secured Term Loan
Pros
- Competitive interest rates.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Strong eligibility criteria required.
- Can be slow to fund.
- Application cannot be completed online.
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
Pros
- Competitive interest rates.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Strong eligibility criteria required.
- Can be slow to fund.
- Application cannot be completed online.
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
What is a secured business loan?
How to secure a business loan
- Property. This can include business and personal assets, such as real estate, office or manufacturing equipment, cars or your home.
- 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 buy serves as collateral on the loan. This is known as
.equipment financing - Inventory. Similar to equipment, inventory can be used to secure a loan in two ways. You can use existing inventory as collateral, or you can get
, in which you use a loan to buy new inventory and that inventory then serves as collateral on the loan.inventory financing - Invoices. You can use your outstanding customer invoices as collateral to get a cash advance from a lender. Also known as
, 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.invoice factoring - Savings. You can use the cash in your bank account to secure a business loan. Some lenders may prefer cash because it’s the most liquid type of collateral.
- Personal guarantee. A
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 if your business can’t pay. Sometimes, adding a second person to guarantee the loan, or apersonal guarantee , can also serve as a way to secure a business loan.business cosigner - Uniform Commercial Code lien. A
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.UCC lien
Types of secured business loans
SBA loans
Business term loans
Business line of credit
Equipment financing
Commercial real estate loans
Secured vs. unsecured business loans
Secured business loans | Unsecured business loans | |
---|---|---|
Collateral requirements | Typically require physical or financial collateral and may also require a UCC lien or personal guarantee. | Typically require a UCC lien or personal guarantee. |
Loan terms | Tend to be longer because your collateral reduces the lender’s risk. | Tend to be shorter so the lender can be repaid quickly. |
Interest rates | May be lower than unsecured business loans, depending on the lender and your overall qualifications. | May be higher than secured business loans, depending on the lender and your overall qualifications. |
Pros and cons of secured business loans
Pros
- Using collateral to reduce risk for the lender may help you access larger loan amounts, lower interest rates and longer repayment terms.
- Collateral may increase chances of approval; can help newer businesses or borrowers with bad credit qualify.
Cons
- Assets you use as collateral are at risk if you can’t repay your financing.
- Can be slower to fund than unsecured loans, especially if the lender requires an appraisal of your collateral.
How to get a secured business loan
1. Determine your funding needs
2. Evaluate your qualifications
3. Identify and assess the value of your collateral
4. Compare secured business lenders
5. Gather your documentation and apply
- Basic information about you and your business.
- Business and personal tax returns.
- Business and personal bank statements.
- Business financial statements.
- Detailed information about your collateral.
- Lease agreements.
- Existing
, if applicable.business debt schedule
6. Review your loan agreement
Alternatives to secured business loans
- Unsecured business loans . If you lack existing collateral, unsecured business loans may be a worthwhile option. These loans aren’t secured with physical assets, but they will typically require a personal guarantee and/or UCC lien. Remember that some funding — like equipment loans or commercial real estate loans — can be secured with the property you’re financing. You don’t necessarily need collateral before you apply to get these kinds of secured loans.
- Accounts receivable factoring .
is a type of funding in which you sell your company’s unpaid invoices to a factoring company. This type of financing can be a good option for borrowers with bad or limited credit histories. Because you’re selling your unpaid invoices,Accounts receivable factoring tend to rely more heavily on your customers’ credit and payment histories when evaluating your application.factoring companies - Business credit cards .
offer flexible financing to businesses of all ages. In particular, startups can use business credit cards to pay for everyday purchases, as approval is based on your personal credit history.To avoid accruing expensive interest, however, you’ll want to make sure you can pay off your balance every month. Like online business loans, business credit cards usually require you to sign a personal guarantee.Business credit cards - Small-business grants. If you want to avoid debt altogether, you might consider applying for
. Grants offer free access to funds that don’t need to be repaid. Although grant applications can be time-consuming and competitive, the process will be worth it if you can get funding. Business grants can be a particularly good option for companies involved in research and technology — as they may be able to qualify for federal grant programs.small-business grants
Frequently asked questions
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Compare interest rates and repayment terms to choose the best product for your needs.
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If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.