When applying for a business loan, itʼs important to know the
difference between secured and unsecured loans.
Hereʼs a simple guide to help you choose the right loan
for your business.

Is a small business loan secured or unsecured?

Small business loans can be either secured or unsecured,
depending on factors like loan terms, your credit score, and
the lenderʼs requirements. You can apply for either type based
on your needs.

What is a secured business loan?

A secured business loan is backed by collateral, such as
business equipment, commercial property, or inventory.
If you repay on time, your assets are safe. If you default, the lender
can take and sell the collateral to recover losses.

What is an unsecured business loan?

An unsecured business loan doesnʼt require collateral. However,
lenders might ask for a personal guarantee, meaning you could be
personally responsible for the debt if you default.

Secured business loans: pros and cons

Pros:

• Lower interest rates
• Larger loan amounts
• Easier to get with low credit scores

Cons:

• Requires collateral
• Risk of losing assets if you default
• Longer repayment periods

Unsecured business loans: pros and cons

Pros:

• No collateral needed
• Shorter loan terms
• Faster approval process

Cons:

• Higher interest rates
• Lower borrowing limits
• Personal guarantee may be required

Choosing the right loan

• Secured loans: Lower interest rates and manageable repayments, but
longer debt duration.
• Unsecured loans: Quick funding and short terms, but higher interest rates and
possible personal liability.

Get a business loan fast

At Quick Access Capital, we make securing business credit quick and easy.
Regardless of your credit score, we help you find the right loan. If approved,
you can get funds within 48 hours.