A secured loan is backed by an asset, such as property, equipment or the business's assets, which the lender can claim if the loan isn't repaid. An unsecured loan isn't backed by a specific asset, so it usually costs more, and a personal guarantee is standard.
Secured lending
- Backed by an asset: a charge over property, a debenture over company assets, or the financed asset itself in asset finance.
- Usually needed for larger facilities, typically above £250,000.
- Usually cheaper: security brings the rate down, and borrowing less against the same asset prices better still.
- Takes longer, because of valuations and legal work.
Unsecured lending
- No specific asset is charged.
- A director's personal guarantee is standard on most facilities above £25,000. See Will I have to give a personal guarantee?.
- Usually costs more, because the lender takes more risk.
- Usually faster to arrange.
Which is right for you?
It depends on the amount, what you can offer as security, and how you weigh cost against risk. We'll set out both where they're available.
Under the Growth Guarantee Scheme
Your main home can't be taken as security. See Does a Growth Guarantee Scheme loan need a personal guarantee?.
Last reviewed: 8 October 2026