As your business grows, so do your financial need- loans can help with investing in equipment, managing cash flow, hiring staff, or expanding into new markets. At Moorgate Finance, we understand that every business is different, and so are its funding requirements.
One of the most important choices when looking for business finance is whether to go for a secured or unsecured loan. Each option comes with its own set of benefits, risks, and ideal use cases.
What Is a Secured Business Loan?
Secured loans provide businesses with the capital they need by using assets as security, allowing you to access funds without the need for upfront capital. You’ll make regular monthly repayments over an agreed term. While you retain ownership of the asset, the lender holds security over it until the loan is fully paid off.
Benefits of Secured Loans
✅ Access to Larger Amounts
Secured loans typically allow businesses to borrow higher sums, making them ideal for significant investments like equipment purchases, property acquisitions or major expansions
✅ Lower Interest Rates
Because lenders face less risk with a secured loan, they usually offer more competitive interest rates and terms.
✅ Longer Repayment Terms
Businesses can spread repayments over a longer period- sometimes up to 7 years- which can ease pressure on cash flow.
✅ Credit Flexibility
Businesses with limited credit history or past credit issues may find it easier to qualify for secured lending, as the asset reduces the lender’s risk.
Things to Consider
⚠ Asset Risk
Failure to meet payment obligations can result in the lender seizing any asset used as security
⚠ Asset Value Depreciation
If the value of the asset decreases over time, it may not cover the loan balance in the event of default
⚠ Missed payments or defaulting on the loan can negatively affect credit rating
What Is an Unsecured Business Loan?
Unsecured loans offer businesses the capital they need without the requirement to pledge assets as security. This means you can access funding without risking your property or equipment. You’ll make regular monthly repayments over an agreed term, and while there’s no asset security required, the loan is still based on your business’s financial status.
Benefits of Unsecured Loans
✅ No Collateral Required
Quick and easy access to capital without the need for existing assets as security
✅ Quick Turnaround
With fewer legal and asset checks, the approval process is much faster
✅ Flexible Use of Funds
Suitable for a variety of business purposes, including working capital, short-term funding or expansion projects.
Things to Consider
⚠ Higher Interest Rates
Higher interest rates compared to secured loans, as the lender assumes more risk
⚠ Lower Loan Amounts
Limited loan amounts compared to secured loans, as no assets are pledged as security
| Secured Loan | Unsecured Loan | |
| Collateral Required | Yes | No |
| Loan Size | Typically Higher | Typically Lower |
| Interest Rate | Generally Higher | Generally Lower |
| Speed of Approval | Slower (due to asset checks) | Faster |
| Ideal For | Long-term investments, large purchases | Short-term needs, fast cash flow support |
Which Loan Type is Right for Your Business?
At Moorgate Finance, we take the time to understand your goals, your sector and your financial position before matching you with a tailored finance solution. Whether that’s a secured loan for expansion or an unsecured loan to boost working capital, we use our extensive panel of lenders to secure the best possible terms.
We’ll guide you through the process from start to finish, making sure to keep you updated at every stage. Our deep expertise across sectors including agriculture, construction, logistics, were trusted to deliver funding that really works.
Give us a call on 01908 92 62 62 or Apply Now to start the conversation.
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As part of our services, we will provide a quotation identifying important information such as payment amount, term and total amount repayable.
Moorgate Finance does not assist in any co-manufacturing of lender products, the lender will review their pricing in line with a range of benchmarks including key market indicators, rates and other market intelligence.