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A bank-style secured term loan is designed for established UK-registered limited companies or LLPs with acceptable credit and sufficient cash-flow coverage. Lenders often look at profitability, trading consistency, and cash-flow headroom. Where security is available, the loan may be more approachable, with typical amounts around £100k to £1.5m and lending terms of 36 to 84 months. Indicatively, pricing for Secured Business Loans can sit around 8% to 16% APR equivalent, depending on the profile and term length. Full decisions are often 2 to 6 weeks, extended where valuations and legal steps are required.

An unsecured term loan is often considered when a lender is comfortable lending without formal security, based on trading history and cash-flow relative to the instalments. Eligibility usually focuses on acceptable credit, net profit or cash generation, and affordability. Typical borrowing ranges are £50k to £500k, with terms commonly 24 to 60 months. Indicatively, rates can be around 10% to 20% APR equivalent for UK SMEs, reflecting the higher risk versus secured lending. Decisions can start within 1 to 4 weeks, with full approvals sometimes taking up to about 6 weeks if deeper verification is needed.

Asset-backed term loans tie the facility to specific eligible assets, which may include certain categories of equipment where accepted. Lenders typically require evidence of ownership and valuation, plus asset schedules, then agree advance limits based on eligible value. Typical amounts are £100k to £1m+, with £500k feasible where the collateral supports it. Terms are often 36 to 72 months, sometimes longer where well-secured. Indicatively, rates can be around 7% to 14% APR equivalent, subject to valuation and security priority. Because Asset Finance is assessed, decision times are often 3 to 7 weeks, depending on the valuation and legal arrangements.