Secured vs Unsecured Loans

When exploring your business loan options, you are likely to stumble across the options of unsecured and secured loans. Now you might be asking yourself, what’s the difference? Well, look no further, you’re in the right place.

So, let’s explore the differences between these two types of loans…

Unsecured loans

Unsecured loans are the most popular type of loan, and moistly only offered to those with a healthy credit score.

This is because they don’t require any collateral to borrow. The main thing you need to know about an unsecured loan is that none of your personal assets are used as security for it. With us, these loans are capped at £250,000.

Secured loans

Secured loans, AKA homeowner loans, are when your debt is tied to an asset, this generally being the borrower’s property. Therefore, this type of loan is mostly taken out by people who own a house. However, this type of loan can be secured against any type of valuable collateral.

Typically, with secured loans, funders are willing to offer larger sums of money with lower rates. This is because there is more insurance for lenders in this case.

We hope now you will be better informed to decide which type of loan suits you best. Nevertheless, both types of loans will offer you the following benefits:

Business loans- the benefits

Cash flow

Keep your cash flowing with ease

Fast payment

Payment is made quickly and hassle-free

Alternative funding line

No need to use up an existing funding facility when we’re here!

Quick and straightforward to arrange

Here at Scaffold Finance, we prioritise making your life as easy as possible.

Lock in rates now!

With ever-rising interest rates, you can lock in the best interest rates now with our fixed rates!

Get approved within 24hrs

We will look to get you credit approved within just 24 hours!

Contact Us

If you are looking for an instant cash injection into your business, please don’t hesitate to get in touch. Give us a call on 01494 506 383, or send an email to hello@scaffoldfinance.co.uk and we will get back to you in no time!