Best Secured Business Loans

Secured business loans are a top choice for businesses in search of a low-rate loan that can help grow their business. Doing your due diligence before selecting a secured business loan is important. Using the secure online platform can help you save tons of time and score the best deal. allows you to submit one application and receive multiple competitive personalized loan offers within minutes. Keep reading to discover the pros and cons of some of the best secured business loan options. 

What are secured business loans?

It’s relatively common for small businesses to take advantage of secured business loans for funding. Secured loans are any type of business funding secured by some type of collateral including:

  • Personal guarantee
  • Valuable assets

Secured vs Unsecured Business Loans

The primary difference between secured and unsecured business loans is that secured loans require collateral. This provides the lender some security on the loan in the event the business defaults. 

Let’s compare the pros and cons of secured business loans:


  • Lower interest rates 
  • Typically longer terms
  • Higher loan amounts depending on collateral
  • Easier approval


  • Requires collateral
  • Risk of losing assets if you default
  • Most lenders require a minimum of 2 years in business under the same ownership

Let’s compare the pros and cons of unsecured business loans:


  • No collateral required
  • Easy application process
  • Dischargeable in the event of bankruptcy


  • Rarely exceed $50,000
  • Often only offered to established companies
  • Require great credit
  • Higher interest rates
  • Prepayment penalties

Unsecured Business Loans

What can be used as collateral for a business loan?

Most lenders will have their own requirements defining what can and can’t be used as collateral. 

Some examples of collateral for a secured business loan can include:

  • Vehicles
  • Buildings
  • Inventory
  • Any asset that has value

How to get secured business loans

Traditional Business Term Loans

A traditional business term loan is typically a bank loan with terms between 1-25 years and monthly repayment. This can be one of the lowest cost options but qualifying can be a challenge. 

Let’s compare the pros and cons of a traditional business term loan:


  • Low fixed interest rates
  • Predictable monthly payments
  • Available for many uses


  • Time consuming application process
  • Difficult to qualify
  • Typically require a personal guarantee, healthy financial, and collateral

Business Term Loans

SBA Loans

Small business Administration (SBA) loans are a government resource that was created to help improve the U.S. economy. SBA loans can help small businesses and would-be entrepreneurs obtain financing opportunities. Lenders and banks are offered a guarantee on SBA loans in the event that the business defaults. 


  • Can help new entrepreneurs, new businesses or businesses lacking credit
  • Typically lower monthly payments
  • Restructure debt at better terms
  • Usually structured without balloon payments


  • Higher interest rates
  • More paperwork and length approval process
  • Good credit typically necessary 

SBA Loans

Business Lines of Credit

A business line of credit can be similar to a credit card in the sense that it typically has a limit and can be used however you want.


  • Helps balance cash flow
  • Only pay interest on the amount you use
  • Increase buying power and take advantage of more opportunities
  • Build business credit history


  • Fees and extra charges
  • Qualifying can be difficult
  • Potential for misuse
  • Lower borrowing limits

Business Line of Credit

Who are the best secured business loan providers?

Funding Circle

Funding Circle is a top-rated provider of secured business loans. Typically the approval process takes 5-14 days. 


  • Quick & easy online application process
  • Transparent terms
  • Use loan proceeds for almost any business purpose
  • Backed by a Who’s Who of equity investors


  • Requires a personal guarantee from owners and a lien on business assets 
  • Penalty on late monthly payments
  • Better options for larger loans

» MORE: Funding Circle Small Business Loans Review


LendingClub is an online peer-to-peer lending platform that offers secured business loans. 


  • Typically lower interest rates than most competitors
  • Clear and upfront terms
  • Easy application and fast approval
  • Secure platform to ensure safety


  • Application requirements can be time consuming
  • Works hard against default accounts

» MORE: LendingClub Small Business Loans Review


Founded in 2017, OnDeck is one of the largest online small business lenders in the U.S. that provides secured business loans. 


  • Transparent terms
  • Access to loans through business debit cards feature coming soon
  • Funds available quickly


  • Higher APRs
  • Origination fee
  • No factoring offered (all funding options incur debt)

» MORE: OnDeck Small Business Loans Review


Kabbage launched in 2008 and is an online lender that provides secured business loans for small businesses.


  • Access approved funds whenever you need them
  • Credit score not considered in approval process
  • Quick funding


  • Confusing repayment process and fee structure
  • Short repayment terms ranging between 6-12 months
  • Limited product offering

» MORE: Kabbage Small Business Loans Review


BlueVine is a fintech company that provides secured business loans for small to medium sized B2B or B2G businesses.


  • Majority of business is repeat
  • Diverse and rich funding sources
  • Invoice factoring 100% online
  • No hard credit checks


  • No funding for B2C entities or freelancers
  • Personal FICO score 600 or above preferred
  • Factoring transactions are full-recourse

» MORE: BlueVine Small Business Loans Review


Fundation provides secured business loans ideally for established businesses with fair or better credit scores. 


  • Quick funding solution (Especially if you have good credit!)
  • Low interest rates for good credit borrowers
  • Loan terms between 1-4 years


  • Origination fee
  • Bi-monthly payment options
  • Minimum annual revenue $100,000
  • Minimum credit score is 620
  • Minimum 1 year in business

» MORE: Fundation Small Business Loans Review

How can I get a business loan without collateral?

Plenty of lending options that don’t require collateral are available such as SBA loans or unsecured business loans. However, secured business loans are typically offered with lower interest rates and longer repayment terms. 


In conclusion, a secured business loan is an attractive option for a low-rate loan that can help take your business to the next level. Ready to take the next step? Apply online in minutes at and receive multiple personalized loan offers. You can efficiently compare offers and select the offer that best fits your needs. Once your loan is finalized you can receive funds quickly. Ready, set, save time and money at

Compare Business Loans

See the online credit card applications for details about the terms and conditions of an offer. Reasonable efforts are made to maintain accurate information. However, all credit card information is presented without warranty. When you click on the “Apply Now” button, you can review the credit card terms and conditions on the issuer’s web site.

The offers that appear on this site are from third party advertisers from which PrimeRates receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). PrimeRates strives to provide a wide array of offers, but our offers do not represent all financial services companies or products.

Scroll to Top