The Best Secured Business Loans Explained
Credibly is a well-established and award-winning lender that serves more than 325 industries right across the US. It’s known for good customer service, simple applications, and early repayment.
- Generous borrowing amounts up to $400,000
- Lenient eligibility requirements
- Perfect for business growth needs
- A blanket lien is placed on all business assets
- Fees can be high
The application process is easy to follow; those with credit scores of 500+ are welcome to apply. For secured loans, a blanket lien is applied, meaning all of your business assets could be at risk in the event of default. This might put some borrowers off, but it usually means you can borrow more money.
You can’t really go wrong with Credibly, as it has one of the best reputations on the market. Just make sure to keep an eye on your payment plan to keep your business assets safe.
Fora Financial boasts a variety of financing products for owners of small-businesses, including term loans. Fora Financial is a New York-based online loan provider, which issues term loans of up to $500,000.
- Cash is readily available
- Receive a discount for prepaying
- No collateral is needed
- Max loan amount is $500,000
- Greatest loan term is 15 months
- Minimum revenue and business age apply
Fora Financial has low requirements regarding how long your business has been in operation. Thus, even a startup business, which has been in existence for only 6 months, can apply.
Requirements vary according to loan type. For a short-term loan you need a monthly average bank balance of more than $1,000 and a $12,000 minimum in monthly gross sales. For a merchant cash advance, you need to earn over $5,000 in monthly revenue.
Fora Financial business loans are easy to qualify for. You can get a merchant cash advance or a short-term loan for up to $500,000. It has an easy to follow the online application process, and your business can gain approval in less than 24 hours.
Fundera is a popular loan connection service. Not all of the lenders that operate from the platform offer secured funding. However, when applying for a term loan, you’ll be offered a very wide range of secured options to pick from. Submitting an application won’t affect your credit score, and it’s a good way to see what you might get.
- Low starting rates from just 7.00%
- Generous borrowing limits up to $600,000
- Long repayment terms up to five years
- You’ll need a credit score of at least 680
- Startups can’t apply
Each of Fundera’s partner lenders will have different requirements on which assets you can use to secure your funding. Most will be pretty flexible. Moreover, as long as you have a good credit score, you can expect some pretty low rates.
Fundera definitely has the best customer service and loan options on our list. However, those with poor credit will need to apply at another platform, given fairly strict eligibility criteria.
OnDeck specializes in fast, short-term funding for businesses that need cash in a pinch. It was founded in 2006, with the goal of helping out businesses that might be struggling. It’s partnered with SCORE, a non-profit that provides advice and mentorship to entrepreneurs for free.
- Funding turnaround within 24 hours
- A great choice for those with poor credit
- You can borrow more than the value of your collateral
- High-interest rates
- Some fees may apply
OnDeck provides a general lien on all business assets whenever you take out a loan; although, this isn’t dependent on the value of your assets, which means you could borrow much more than you expect. The lender specializes in fast funding to cover short-term funding gaps over 12-24 months.
OnDeck is a fantastic choice for those that have been rejected by other lenders, and all applications are welcome. However, interest rates might be a little high for some.
Kabbage specializes in providing lines of credit and is known for its incredibly fast application process and advanced algorithm for selecting loan options. Following a partnership deal in 2021, only applications from existing American Express customers are currently being accepted. Alternatively, you can join the waiting list.
- Approvals within three minutes
- Flexible options for securing your funding
- Poor credit scores are welcome
- Applications are currently only open to American Express customers
- Potentially high rates
A secured line of credit can be much more flexible than a traditional term loan. It’s a preset borrowing limit that you can draw on whenever you like. Kabbage has fairly lenient eligibility criteria and only requires that you’ve been operating for 12 months and generate at least $50,000 of revenue per year.
Kabbage’s secured lines of credit are a great choice for any American Express customer. There’s a very high likelihood of being approved, and the process is easy. The rest of us will have to join the waiting list, though.
Kapitus was known as Strategic Funding until a total rebrand in 2018. It’s now known for top-notch customer service, reasonable rates, and flexible loan products.
- Low starting rates from 5.99%
- Wide range of loan types
- Fast approval process
- Origination fees can be high
- Lower borrowing limits than competitors
Secured loan options primarily come in the form of an equipment loan. However, if you’re applying for a standard term loan, you may be able to pledge different types of assets to secure funding. Rates are very reasonable; you could be approved within 24 hours.
Kapitus might not have the highest lending limits on secured loans, but it does have a great reputation and low rates. Eligibility criteria aren’t too strict, and it won’t hurt your credit rating to take a look.