Secured business loans in commercial lending

A secured business loan allows companies to secure funds by leveraging assets owned by the company as collateral for the loan.

This financing option is also referred to as secured commercial loans or asset-backed financing. Different lenders accept various forms of collateral, with tangible assets being the preferred class.

At Andorra Private, we exclusively extend loans to businesses able to offer real estate as collateral. Secured business loans offer versatility and are suitable for nearly any business need.

Structured to support your business when an unsecured loan isn’t viable, secured corporate loans provide the necessary financing.

By securing the loan against collateral, lenders can offer more competitive rates and longer terms compared to unsecured loans, as they face a lower risk of financial loss if borrowers fail to meet repayment terms.

Such loans are particularly beneficial for companies unable to secure financing through unsecured means or requiring larger sums than typically available through unsecured options.

It’s crucial to understand that if the borrower defaults on the loan, ownership rights and the ability to sell the asset will transfer to the lender, who will utilize them to recoup the funds.

Contrary to traditional lenders, Andorra Private mandates that a business use physical assets—like residential or commercial property—as collateral for a secured business loan.

Assets such as inventory, motor vehicles, and trade equipment and machinery are not deemed acceptable collateral. Leveraging our boutique research approach enables us to act swiftly, ensuring an expedited timeline from approval to loan disbursement.

Similar to a mortgage application, a professional valuation is necessary to verify the assets’ value.

In short, yes.

This is where the lender panel of Andorra Private diverges from major banks and other lenders.

We adopt a practical and rational lending approach aimed at empowering Australian businesses. Hence, we are open to engaging with businesses seeking secured loans even with less-than-ideal credit ratings.

Unlike major banks, we prioritize simplicity in the lending process.

Secured business loans often emerge as the preferred solution for businesses seeking swift financial injections. With these loans secured against your business assets, like property equity, the lender reserves the right to repossess your assets if repayment obligations are unmet. However, compared to unsecured loans, secured loans typically offer more favourable interest rates due to lower risk for the lender. In situations where other funding avenues are unavailable, secured business loans often prove accessible.

These loans are particularly advantageous for business owners grappling with poor credit history or those embarking on entrepreneurial ventures without meeting traditional bank loan criteria. Notably, many mainstream lenders feature complex and time-consuming application processes, unsuitable for urgent funding needs.

At Andorra Private, we streamline the secured business loan process. Understanding your requirements, we assess asset value to offer fair interest rates and repayment terms. Often, delving deep into your credit history isn’t necessary, as our straightforward loans are anchored by your property assets.

In general, secured loans tend to be more accessible compared to their unsecured counterparts. From the lender’s perspective, unsecured loans pose greater risk since there’s potential financial loss if the borrower defaults. Therefore, your credit history, along with documents like bank statements and invoices, significantly influence secured loan eligibility.

Secured loans entail fewer risks for lenders as they are backed by your business assets’ value, typically property equity. Should repayment become problematic, the lender reserves the right to seize these assets used as collateral. This allows you to leverage your business’s value, freeing up cash for reinvestment in endeavors like research and development or covering unforeseen expenses. Sometimes, you may require a quick infusion of funds for short-term cash flow needs.

Given the reduced risk associated with secured loans, lenders may not scrutinize your credit history or business records extensively to assess eligibility. Nonetheless, it’s essential to act responsibly and weigh your options carefully before pursuing a secured business loan. If you seek advice, wish to explore the advantages of secured loans, or inquire about alternative options, feel free to reach out to us for assistance. We’re just a phone call away.

You might presume that with no credit history, a low credit score, or a fledgling business lacking income, accessing necessary financing seems daunting. Perhaps your business has faced adversity, leading conventional bank lenders to hesitate in providing the essential financial support. If you possess limited capital or a less-than-ideal credit rating, obtaining an unsecured loan may prove challenging due to perceived high risk by lenders. Thankfully, secured loans offer a viable avenue to fuel business expansion.

These loans are anchored by your assets. At Andorra Private, we leverage your business assets’ value to determine available funding, with loan terms tailored to individual circumstances. We extend loans worth up to 75% of residential property value, 70% for commercial or residential apartments, and 55% for land holdings. Presently, we don’t secure loans against industrial, farming, or specialized assets. Moreover, we offer preferential rates on loans secured against your primary mortgage. If you require a swift financial boost and can manage repayments over three to 24 months, discover how we can assist you.

In Australia, small business loans typically range from $5,000 to $500,000, with an average of around $30,000.

At Andorra Private, our minimum small loan size is $100,000, offering flexibility for managing cash flow or addressing unexpected expenses. However, for larger financial needs, we can extend loans up to $5 million, providing substantial support for your entire development project.

One key advantage of small secured business loans is their rapid accessibility. Many businesses require swift cash injections to address cash flow fluctuations in anticipation of seasonal shifts or to invest in research and development or procure new inventory. Typically, secured business loans serve as short-term funding solutions, with borrowing limits based on asset value and repayment periods spanning from two to 24 months.

The timeline to acquire a secured business loan typically ranges from three to six weeks, depending on the lender. However, if you opt for a loan from a traditional bank, be prepared for potential delays in the application process. Banks often adhere to strict policies, including thorough credit history assessments that can prolong approval times.

As private loan brokers, we take a different approach to determine eligibility. Our team prioritizes creating mutually beneficial outcomes and offers loans with favorable terms.

If you require urgent financial assistance and cannot afford lengthy waiting periods, reach out to our experts. We pride ourselves on maintaining a straightforward and efficient application and approval process, setting us apart from other private loan lenders.

Additionally, we provide flexible repayment terms tailored to your specific needs.