Starting at $25,000
6.00%
Up to 60 months
With almost 6,000 branches nationwide, Bank of America can be a great option for businesses wanting a traditional bank loan, including access to a range of financing solutions, business checking accounts, in-person support and networking opportunities, free rewards programs and more. Secured funding options include term loans and credit lines starting at $25,000.
While interest rates are competitive, term loans include a 0.50% origination fee of the total loan amount, and at least $150 in upfront and renewal fees for lines of credit.
Read our full Bank of America review.
In order to qualify for a secured business loan, you’ll need to meet Bank of America’s criteria of:
$25,000 to $500,000
7.49%
6 to 84 months
iBusiness Funding is an online lender offering competitive secured business term loans from $25,000 to $500,000. With a streamlined application process, you could receive funds as quickly as two business days after approval. Funds can be used for payroll, inventory, hiring staff, renovations and more.
iBusiness Funding also offers funding options for women-owned businesses and minority entrepreneurs.
Read our full iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
$100,000 to $1,000,000
8.50% Based on the current prime rate of 8.00% + 0.50% added by Wells Fargo
12 months (with annual review)
The Wells Fargo Prime Line offers a flexible business line of credit of up to $1,000,000, secured by non-real estate business assets. Funds can be used for short-term working capital expenses or long-term projects — with interest only charged on withdrawn amounts.
As a traditional bank, Wells Fargo has close to 7,000 branches nationwide and offers a range of small business solutions, including business bank accounts, business credit cards, merchant services and tailored support.
Read our full Wells Fargo review.
In order to qualify for a Prime Line of Credit, you’ll need to meet Wells Fargo’s criteria of:
$50,001 to $5,000,000
11.00% to 14.50%
14.50% for loans $50,000 or less
14.00% for loans $50,001 to $250,000
12.50% for loans $250,001 to $350,000
11.00% for loans above $350,000
Some lenders may charge lower rates. Based on the current prime rate of 8.00% + a rate maximum set by the SBA.
13.00% to 16.00%
16.00% for loans $25,000 or less
15.00% for loans $25,001 to $50,000
14.00% for loans $50,001 to $250,000
13.00% for loans above $250,000
Some lenders may charge lower rates. Based on the current prime rate of 8.00% + a rate maximum set by the SBA.
Up to 300 months
Business owners needing higher loan amounts and longer repayment terms can consider an SBA loan, such as the popular SBA 7(a) or SBA 504 loans. Since the U.S. Small Business Administration (SBA) guarantees a portion of the funds, borrowers unable to qualify for traditional funding might have better luck getting an SBA loan.
SBA-secured loans start at $50,001, although lower amounts might be available without collateral. You can find an SBA lender through a traditional bank, credit union or online lender.
Read more about the SBA loan program.
Individual lenders approve and fund SBA loans and set their own criteria, but you can increase your chances of approval by meeting the general SBA loan requirements of:
Up to $1,000,000
Not disclosed
0 to 12+ months
If you need to acquire or upgrade heavy equipment or machinery for your business, U.S. Bank provides up to 125% in equipment financing to cover all costs, including installation, tax and freight.
Since the equipment acts as collateral to secure the debt, you don’t need to provide a down payment or a blanket lien on your business assets. But beware, as with other types of collateral business loans, the lender can seize your equipment if you fail to keep up with loan payments.
U.S. Bank also offers a full range of small business solutions, such as secured and unsecured quick business loans, business bank accounts, credit cards, payroll services, entrepreneurial resources and more.
Read our full U.S. Bank review.
U.S. Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the lender directly to learn if your business qualifies for a secured business loan.
$100,001 and up
Not publicly disclosed
24 to 84 months
Business owners needing significant funding can consider a secured business loan with PNC Bank. Loan amounts start at $100,001, with no maximum limit specified. Although the full range of eligibility requirements aren’t disclosed, PNC requires a clean credit history with no late payments, foreclosures or accounts in collections.
In addition to secured financing, you can consider some of PNC’s other offerings, such as unsecured business loans, lines of credit, secured commercial loans, vehicle financing and SBA loans.
Read our full PNC Bank review.
In order to qualify, you’ll need to meet PNC Bank’s criteria of:
$5,000 to $250,000
27.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered).
24 months
A secured term loan with OnDeck can provide up to $250,000 with same-day funding, depending on your business’s location. With a relatively low minimum credit score and business history requirement, OnDeck could be a great fit for startups or those looking for bad credit financing. Additionally, OnDeck’s flexible collateral requirements make it more accessible than other types of traditional financing.
However, OnDeck typically offers high interest rates — with an average 56.1% APR for its secured term loan.
Read our full OnDeck review.
In order to qualify for a secured term loan, you’ll need to meet OnDeck’s criteria of:
A secured loan is a type of small business financing where the borrower pledges collateral to help minimize lender risk.
Collateral is typically an asset the lender can seize if you default on the loan. For small businesses, assets like equipment, cash savings or real estate can often serve as collateral for secured business loans.
Since the collateral acts as a guarantee for the funds, startup businesses and businesses with bad credit may have better success obtaining a business loan with collateral over an unsecured loan.
Ready to apply for a secured business loan? Here are six steps to help you get a small business loan.
Review your business budget to estimate your funding needs. Also consider whether you want to receive funds all at once or spread out over time. Although secured loans typically offer lower interest rates, you could end up paying more if you opt for a longer repayment term.
Use our business loan calculator to estimate your borrowing potential.Review each lender’s general business loan requirements online, such as minimum credit score, annual revenue and collateral requirements. While alternative lenders typically have more lenient requirements for secured business loans, you’ll likely pay higher rates than with traditional financing.
Having a high credit score can improve your chances of approval and help secure a more competitive rate. LendingTree Spring can help monitor your score for free to see where you stand.
Collateral requirements vary by lender and loan type. In general, you could pledge equipment, real estate, invoices or financial assets as collateral for business loans. If you can’t meet the lender’s collateral requirements, you may want to consider unsecured business loans instead.
You can apply for secured business loans via traditional banks, credit unions or online lenders. Watch out for hidden fees, which can increase the overall cost of your loan. Also, make sure the lender reports on-time payments to the major credit bureaus so you can establish and build your business credit.
You can read small business lender reviews before applying to find the best options for your needs.
Lenders typically require certain documents during the application process. While the exact documents will vary, here’s a general idea of what you’ll need:
Most secured business loan applications can be completed online, but some lenders might require a phone call or in-person visit. Since the lender has to review your assets, secured business loans typically take longer to approve and fund.
For example, it can take months to receive your funds after being approved for an SBA loan, although you can reduce this timeline to two weeks by working with an SBA-preferred lender.
Make sure to review all loan offers to ensure you understand the rates, repayment term and additional fees.
Both secured and unsecured business loans exist. With a secured loan, you’ll need to pledge collateral, such as property or cash. While unsecured loans don’t usually require collateral, you can expect lower borrowing limits and higher interest rates.
Compared to unsecured loans, secured loans have a higher chance of approval since the collateral reduces lender risk. But, because the collateral will need to be appraised, it may take longer to get your funds.
Since many lenders require a one- to two-year business history to qualify for financing, getting a secured startup business loan could be challenging. However, some lenders work with early stage startups, such as online lender Taycor Financial, who offers secured finance options for companies less than a year old.
If you have a lower credit score, providing collateral could help reduce your risk to lenders. In addition, equipment financing tends to accept lower credit scores since the equipment acts as collateral. For example, Taycor Financial offers equipment financing to business owners with credit scores as low as 550.
The turnaround time for secured business loans vary based on the lender and loan type. In general, online business loans have quick processing times, allowing you to receive a decision within minutes. Often, the funds are deposited on the same day or within a few business days. In comparison, an SBA or traditional bank loan is more time-consuming, with funding times lasting up to 90 days.
