Financially.site – A secured business loan is a type of financing that requires the borrower to provide collateral as security. Collateral can include real estate, equipment, inventory, or other valuable assets owned by the business.
When a business takes out a secured loan, they pledge specific assets, and if they default on the loan, the lender can seize the collateral to recover their losses.
Secured loans are generally considered less risky for lenders, which often results in lower interest rates for borrowers.
Various types of secured business loans exist, such as vehicle loans, mortgage loans, share-secured loans, and secured credit cards.
