Large secured business loans.
Test the repayment case.
For established UK companies considering £200,000+ borrowing for growth, investment or suitable refinancing. Start with cash generation, then examine what the proposed security commits you to.
Discuss secured business borrowingNBS Funding is operated by NBS Finance. Commercial finance broker and introducer, not a lender. No client broker fee.
A secured business loan gives the lender rights over agreed assets if the borrower defaults. Security supports the assessment; it does not replace a credible repayment source or guarantee approval.
Two questions before committing
| Decision | What to establish | Why it matters |
|---|---|---|
| Can trading service the debt? | Forecast operating cash after tax, working capital, existing debt and planned investment. | A valuable asset does not make an unaffordable repayment sustainable. |
| What rights would the lender take? | Assets charged, ranking, guarantees, covenants and release conditions. | Default may put business assets at risk and restrict future finance. |
Growth, premises improvements, expansion and defined refinancing can be legitimate uses. A one-off investment and a recurring trading shortfall need different repayment plans. Compare the secured proposal with a suitable unsecured loan, asset finance or receivables facility rather than assuming one structure fits every purpose.
Understand the security package
| Structure | What needs checking |
|---|---|
| Charge over commercial property | Ownership, independent valuation, existing mortgage, lender ranking and legal completion. This page concerns commercial company borrowing. |
| Specific business-asset security | Plant, machinery or other acceptable assets: title, value, existing finance and enforceability. |
| Company debenture | Fixed or floating charges may cover different business assets. Existing charges and priority arrangements can constrain new borrowing. |
| Personal guarantee | A separate personal obligation may be required alongside company security. Confirm caps, duration, release and any supporting security. |
The lender may need consent from an incumbent funder or a priority agreement before funds can be released. Ask a suitably qualified solicitor to explain the documents and guarantee exposure. Assets used as security may be repossessed or sold if repayments are not maintained; a guarantor may be pursued under the guarantee.
Compare cash received with the full commitment
- Gross loan
- £500,000
- Existing debt settled
- − £180,000
- Assumed fees deducted
- − £10,000
- Net cash for the business
- £310,000
For illustration only: assume 60 monthly payments of £10,500, no balloon and fees deducted as above. Scheduled repayments total £630,000. Interest within those payments is £130,000; adding the £10,000 deducted fees gives £140,000 total financing cost. Other charges and early settlement are excluded. These invented payment assumptions are not a market rate or APR.
Request the actual repayment schedule, fixed or variable rate basis, reference-rate floors, term, arrangement/legal/valuation fees, covenant tests and early-repayment provisions. A longer term may reduce monthly payments while increasing total interest. Compare net new cash and debt being replaced on the same basis.
Build a repayment case that can be challenged
Use a base forecast and a downside case: slower collections, weaker gross margin, delayed investment benefits or higher variable interest. Show how the business pays during the difficult months, not only its annual profit.
- Recent filed accounts and current management accounts, with explanations for unusual items.
- Cash-flow forecast, existing debt schedule and actual settlement figures.
- Use of funds, investment timetable and measurable repayment source.
- Security ownership, asset values, existing charges and any proposed guarantors.
Reliable financial information, an identifiable purpose and sustainable cash generation make the discussion more useful. A proposal dependent on selling essential assets or optimistic future growth needs closer examination. No universal turnover or trading-age rule is applied by this page.
Questions before proceeding
Does offering security guarantee a loan or a cheaper rate?
No. The lender still assesses affordability, financial performance, credit history, security value and its own appetite. Compare actual terms; do not assume a rate advantage.
Can a secured loan replace existing business debt?
Potentially. Establish settlement and exit costs, security releases and whether the new schedule improves the commercial position. Use the business loan refinancing guide for that wider comparison.
Is a personal guarantee the same as an asset charge?
No. A guarantee is a personal promise to meet defined liabilities; an asset charge gives rights over specified assets. They may coexist, and both need careful legal review.
Provider material describes that provider’s product. It does not establish an NBS relationship, current case acceptance or an offer. Examples on this page are hypothetical. Prepared by NBS Funding, operated by Isaac Powell trading as NBS Finance.
Bring the requirement.
Understand the next step.
No financial documents needed to begin. Provider assessment and terms apply.