Secured Term Loan

A secured term loan is a type of financing where you use an assets as security. This reduces the risk for lenders, often resulting in lower interest rates, longer terms, and higher loan amounts.

You can borrow anywhere from $10,000 to over $1,000,000 with a secured term loan.

The most common form of collateral for a secured term loan is a property that you own, which can be commercial, rural or residential. Other options include personal assets of high value, equipment, vehicles, trucks, and even the equity within your business, although these are not as common.

With Valiant, secured finance interest rates start from 7% p.a., but the exact rate you receive may vary based on factors like your credit profile, loan amount, and asset used.

If you default, the lender can take possession of the asset used as collateral, and sell it to recover the debt. Defaulting can also negatively impact your credit score and future borrowing power.

If you're considering a secured business loan, we can help. Fill out our quick form, and our lending experts will then get in contact to confirm your details and find the right funding solution for your needs.

Some loans require ‘security’ or ‘collateral’—such as real estate or a vehicle–that the lender can claim in the event of default to recoup any losses incurred. As a borrower, having your asset or property on the line is a good incentive to make repayments on time.

A lender’s imposition of collateral depends in part on their assessment of your creditworthiness. They base these on several factors such as your business track record and credit score. So presenting a positive picture of your company and its reputation also shapes the terms of the loan that you get.