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The security is at risk if repayments aren't met.
Secured funding
Larger amounts, backed by security.
Secured funding is backed by an asset, commonly residential or commercial property. Security can make larger amounts or longer terms available, but it puts the asset at risk if the facility isn't repaid.
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In short
Updated
What is secured business funding?
Secured business funding is finance backed by an asset, most commonly residential or commercial property. Offering security can make larger amounts or longer terms available than unsecured options, but the asset is at risk if repayments are not met, and valuation and legal steps usually add time and cost.
How it works
Secured funding, explained.
Secured funding is backed by an asset, commonly residential or commercial property. Security can make larger amounts or longer terms available.
It also puts the asset at risk if the facility isn't repaid, and valuations and legal work usually add time and cost to the process.
Often considered when
Where it tends to come up.
- The amount needed is larger than unsecured options may support
- A longer repayment term would suit the purpose
- The owners have equity in property and are comfortable offering it as security
What lenders commonly look at
- 01The value of the security and any existing mortgages against it
- 02Turnover, trading history and servicing capacity
- 03The purpose of the funds
- 04Credit history of the business and its directors
Each lender weighs these differently, and criteria change over time.
Worth weighing
Before you apply.
02
Valuation, legal and settlement steps usually make secured facilities slower to arrange.
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Independent legal and financial advice is worth getting before offering property as security.
General information only. It does not take your circumstances into account and is not a recommendation, offer or approval. Funding is subject to lender assessment, eligibility and terms.
Answers
Secured funding questions
What can be used as security for business funding?
Residential or commercial property is the most common form of security. Lenders look at its value and any existing mortgages against it, alongside the business's turnover, trading history and capacity to service the facility.
Is secured funding slower to arrange than unsecured funding?
Usually. Valuation, legal and settlement steps make secured facilities slower and more costly to arrange than unsecured options.
What should I consider before offering property as security?
The property is at risk if repayments are not met. Independent legal and financial advice is worth getting before offering property as security.
How does Tennanova help with secured business funding?
Tennanova's Funding Check shows whether secured business funding is among the funding structures worth exploring for your business, based on your answers. It involves no credit enquiry and is general information, not an offer or approval. Tennanova is not a lender and does not provide credit.
Funding Check
Know what may fit before you apply.
Tell us about the business. We'll show you the funding structures that may be worth a closer look, then you decide whether to go further.