Types of Secured Business Loans
When you look for a secured business loan, there are a few different types that you need to know about.
Traditional term loans
This is the type of loan that most people are familiar with. It runs for a fixed period of time that you use to pay it back, often in monthly installments.
SBA loans
The U.S. Small Business Administration helps companies to get hold of secured loans more easily, while reducing the risk involved for lenders at the same time.
Business lines of credit
This is a revolving type of credit that gives you the flexibility to borrow up to a pre-agreed limit. You only pay interest on the amount that you have borrowed at any given time.
Securing a Small Business Loan with Collateral
If the time is right to borrow some money for your business then you might wonder how to go about it. The first is to consider the different types of collateral loans that are mentioned above. Is there one that is perfect for your needs just now? If you have something that you can use as collateral for business loan purposes then you will have a variety of options to choose from. Therefore, it is all about making a smart decision. You can look for collateral loans online to see the widest selection of offers in very little time. This lets you do research on small business loans easily and narrow down your options before choosing the one that you prefer.

What Kind of Collateral Can You Use to Secure a Loan?
Before going ahead and arranging your secured loans, you need to consider what assets you are going to use as security. Typically, it is possible to arrange collateral loans using the following items.
Property
One of the simplest and most common approaches is to use property as collateral. You need to remember that this property is at risk if you fail to keep up your repayments, though.
Savings
You could also use cash savings to get a secured loan. This means setting aside enough money to cover the loan amount. You won’t be able to access your full savings until the loan is paid off, although you may be able to withdraw some in line with the reductions in the amount that you owe.
Invoices
Invoice financing is a type of secured borrowing that lets you take out a loan on the strength of invoices that you have issued but that haven’t yet been paid.
Inventory
Another option is to look at inventory financing. With this type of loan, you use the inventory that you hold as the collateral.
Blanket liens
With secured loans of this type, you give the lender the right to take any of your assets if you fail to pay back the amount that you borrow.
Securing a Business Loan with a Personal Guarantee
What if you don’t have any business assets that you can use as collateral, but need to get some extra funding? In this case, you can use a personal guarantee that confirms that you will take personal responsibility for the loan.
What’s a personal guarantee?
This is a written guarantee that you provide to the lender. You are confirming in it that failure to repay the business loan means that the responsibility is passed on to you personally.
Collateral vs personal guarantees
Naturally, putting your own assets on the line isn’t something that should be done lightly. In the case of new business loans for start-ups, this might be the simplest approach. However, if the business has assets it may be better to use them.
Limited vs unlimited personal guarantee
As the name suggests, an unlimited guarantee means that you are responsible for 100% of the loan amount. If it is limited then a maximum figure is put on your personal responsibility.
Best Recommended Options for a Secured Business Loan
What are the best small business loans for your needs? The following are some of the options for secured loans that you might like to consider.
Short term loans
You may only need a short term loan to get you through a specific period of time. This will typically run for a year or less, meaning that the amount of interest payable is fairly limited.
Equipment loans
Using your equipment as collateral can be a sensible way to grow a business. If you need to buy new pieces of equipment or replace older pieces then the items themselves can act as the lender’s security.
Inventory financing
This is one of the most appropriate small business loans for companies that need to wait for their invoices to be settled. It lets them meet their outgoings even if their customers don’t pay them immediately.

Secured Business Loan with Bad Credit
What if you have a poor credit history? Secured loans for bad credit cases are more difficult to find, but it isn’t impossible to arrange something suitable. By looking for a collateral loan, bad credit is easier for potential lenders to accept. Close to a third of Americans have a poor credit score of under 601. Yet, this doesn’t mean that you should pay a lot more for your business loans if you are in the same situation. By looking at online secured loans for bad credit, you can quickly find out the options that are available. The best bad credit business loans will let you achieve your goals, regardless of any previous credit issues.
My Conclusion
There are numerous reasons for looking at secured loans for a business. Thankfully, there are also different ways of doing this that should suit most companies. Whether you want invoice financing, a secured line of credit, a poor credit loan or something else, it is always a good idea to start off by thinking about your needs and your assets.