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Secured term loans use security, often over property and or key business assets. Lenders typically look for consistent revenue that can absorb seasonality, credible uses of funds, and information to support the security position, including legal and valuation requirements. Personal guarantees may be requested for smaller owner-managed hotels. Amounts can often run from around £100,000 up to £1,500,000 plus, with terms commonly 24 to 84 months. Pricing is commonly within a broad secured band of roughly 6% to 15% per annum, depending on credit risk and how conservative the loan to value is.

Unsecured term loans are assessed primarily on cash-flow affordability rather than available security. Eligibility often relies on stable income, company accounts, and evidence you can manage seasonal fluctuations. Personal guarantees are more common where security is limited. Typical amounts can range from about £25,000 to £500,000 to £750,000 depending on turnover, profitability and lender risk appetite. Terms are commonly 12 to 60 months. Interest rates are often roughly 8% to 20% per annum for unsecured SME lending, and initial decisions can be around 3 to 10 working days, depending on the lender and the completeness of your documents.

Partially secured term loans combine limited security with cash-flow affordability. Lenders may take a charge or debenture on business assets, aiming to balance risk with the strength of your repayment profile. Eligibility still typically requires trading history and robust affordability evidence, so your plans for repayment through seasonality are important. Amounts are often in the £75,000 to £1,000,000 plus range for suitable cases, with £600,000 commonly targeted in mixed scenarios. Terms are typically 24 to 72 months. Interest rates are often priced between secured and unsecured bands, commonly around 7% to 18% per annum, and decision times can be around 2 to 6 weeks due to the added complexity of the security package.