A secured loan is one where the business puts forward an asset such as a vehicle, equipment or property to act as security. A formal charge, restriction or other security document will be registered against the asset, either at Companies House or the Land Registry, which may affect your ability to deal freely with the secured asset, i.e. you may be restricted from selling the asset without the lender’s prior permission. If loan payments are not made, the lender can enforce their security directly against the asset in question in order to recoup the money it is owed.

An unsecured loan does not require any assets as security. The lender typically will base their lending decision on an assessment of the creditworthiness of your business and affordability of the monthly payments. Depending on this assessment, a lender may still ask for a personal guarantee from the directors or shareholders. This is a promise to pay from the individual to the lender in support of the business, but no formal security will be registered against either the businesses’ or their personal assets meaning you can deal with these freely.

The vast majority of business loans arranged by Portman are unsecured. In some cases, formal security may be taken by a lender, but this very much depends on the individual business’s circumstances and requirements and is dealt with on a case by case basis.

Portman work with businesses of all sizes and can secure funding for both small businesses and new starts, as well as established larger firms. Portman typically sources funding from £10,000 and above, but is able to offer lower value funding in some circumstances. 

You can enquire online by using our eligibility checker enquiry form. Click ‘get started’ at the top of the page and complete your details on the enquiry form. Once you have submitted your details, one of our account managers will contact you to discuss your needs. We do need some business documentation from you but will complete proposals and applications on your behalf. 

Business loans can be used for any legitimate business purpose. Our customers use loans to fund premises, to buy stock, to market their business, to cover wages or operational costs or to buy any items they need for their business.

The ability to get a loan and the best available rate depends on a combination of the current and historic trade of your business and, depending on the strength of your business, your own personal circumstances. It is typically easier for established businesses with a healthy balance sheet and P&Lto obtain finance than for newer businesses or those who have had financial difficulties. However, as both a lender and a broker, Portman can match the requirements of our customers with the lender most likely to offer finance, giving you a greater chance of success.