Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Secured business loans

Get access to a lower rate by using an asset as collateral on a secured business loan.

1 - 3 of 3
Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
Simplify Commercial Vehicle Loan
6.25% - 14.5%
1 to 5 years
$100 - $500, depending on loan amount, lender and term
Eligibility: Must be 18+, a New Zealand resident or permanent citizen and have an income of at least $500 per month.
Secured vehicle finance from $5,000 to $500,000.
Lending Crowd Business Loan
6.89% - 20.26%
2, 3 or 5 years
$350 - $650 depending on your borrowed loan amount
Eligibility: Be an NZ resident/citizen and have a good credit score.
Secured and unsecured loans up to $200,000. 100% online with no paperwork or early repayment fees.
Prospa Plus Business Loan
13.9% - 29.9%
Up to 36 months
2.5% of loan amount
Eligibility: Be 18+, be a New Zealand citizen or permanent resident, own a business with a valid NZBN.
Special offer: No repayments for the first 4 weeks on approved Prospa Business loans. T&Cs apply.

Compare up to 4 providers

If you’re looking to grow your business and also own a suitable asset, you can use it as security on a business loan and get a more competitive interest rate.

Find out how it works and if it’s right for your business.

What is a secured business loan?

A secured business loan is a type of business finance that uses an asset you own as security against the loan. If you fail to repay the loan, the lender can then take ownership of the asset to cover the cost of the loan, reducing its risk. As a result, you typically get more-favourable terms, such as a lower interest rate and the ability to borrow a larger amount. Commercial and residential properties are frequently used as security, but you may also be able to use a piece of equipment or other asset depending on the lender.

So if you run an established business, own one or more valuable assets and you want to borrow a large amount of money, a secured business loan could be the perfect choice.

If you don’t have an asset you’d like to use as security for a business loan, you may consider an unsecured business loan.

What do you need as security?

When you offer an asset as collateral for a business loan, the loan is secured by the residual value of that asset. While this can help you access funding with more favourable terms, it also means that you may forfeit the asset to the lender if you can’t make loan repayments on time.

The assets most commonly used to secure a business loan are:

You don’t necessarily need to own the property outright to offer it as security, as business equity loans allow you to access the equity you have in your personal or business property to get the funding you need.

Depending on the lender and the amount you wish to borrow, you may be able to use other assets.

Other assets to secure a business loan include

  • Vehicles
  • Fine art
  • Business equipment
  • Appliances and valuable musical instruments

What are the risks of secured business loans?

The major risk with a secured business loan is that if you default on the repayments, the asset you offer as security could be repossessed by the lender. Repossession could have serious consequences for the future of your business or, if you listed personal property as collateral, could potentially hit even closer to home.

As with any other type of loan, you should always be wary of borrowing more than you can afford to repay. Make sure you’re aware of how much the regular repayment amount is, plus what the total cost of the loan is once it is fully paid off before you access any financing.

How can you compare secured business loans?

Consider the following features when weighing up your loan options:

  • Interest rates. This is a vital feature when calculating the total cost of a loan. There are fixed- and variable-rate secured business loans available and it’s worth shopping around to find a competitive rate.
  • Loan fees. Check the fine print for details of any upfront and ongoing loan fees, as well as any fees that apply to late or missed payments.
  • Minimum loan amount. Loan amounts vary depending on the lender, your financial situation and the asset you offer to secure the loan. However, check that any minimum loan limit that applies is suitable for your needs.
  • Asset type. While many lenders allow you to use either a residential or commercial property as security for your loan, some require you to use one or the other.
  • Repayment schedule. How much is the regular repayment amount and can the repayment schedule be tailored to suit your business cash flow?
  • Repayment flexibility. Can you make additional repayments at any time if your business comes into some additional funds? Is there any penalty for paying the loan off early?

What businesses are eligible for these types of loans?

The exact criteria you need to satisfy to qualify for a secured business loan varies between lenders and depends on the amount you wish to borrow. However, you typically need to meet the following requirements:

  • Business history. Most lenders require you to have been in business for a specified minimum period, such as six months or two years.
  • Business financial strength. Lenders assess the average monthly turnover of your business, plus profit and loss statements and income projections to determine your repayment capacity.
  • Asset requirement. You need to own a suitable asset (or assets) to provide sufficient security for the amount you wish to borrow.

Eligibility criteria vary greatly depending on the loan you apply for, so make sure you’re aware of all the necessary requirements before you apply.

Frequently asked questions about secured business loans

Who offers secured business loans?

Secured business loans are most commonly offered by banks and traditional lenders, but some short-term secured loans are also available from alternative lenders.

What if I want to sell the asset that I used to secure my loan during the loan term?

You need to get your lender’s approval to sell the asset and offer another acceptable form of collateral to take its place.

What if I don’t have any assets I can offer as security?

You may need to consider your unsecured business finance options.

More guides on Finder

    Ask an Expert

    You are about to post a question on

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.

    Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site