Secured Business Loan
Secured Business Loans are just what a Proprietor/ Partner or a Co-Owner needs to quench his or her needs when it comes to Business expansion, be it purchase of a land to start a new establishment, investing in large scale production, renovating the Office, Employee Bonus or needs of the Business which requires Cash deposits.
Secured Loans mean that an asset be it a property, bond or something which is of an equal value or more is placed as an assurance for the Bank / the Organization providing the Loan, such that if he or she is unable to fulfill his or her promise to pay the Loan amount ( Principal + Interest ) in a regularly scheduled interval then that asset will be taken as a compensation to settle the Loan, additional Payment may be required if the value of the asset doesn’t replenish the Loan Amount.
Since a collateral asset is being linked with the Loan Amount, a sense of assurance comes into play for the lender being the Bank / the Organization providing the Loan. Thus, chances of Loan Approval increases many folds compared to Unsecured Loans.
Secured Loans generally allow Higher Loan Amounts, Longer Time Period and Lower Interest Rates compared to other Loans.