Best Secured Business Loans

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Whether you’re aiming to take your business to the next level or just need some cash to keep operating through a rough patch, a business loan can act as a lifeline. Though you have several options, going with a secured business loans can be a good move if you’re looking for competitive rates or a loan program with less stringent requirements.

Secured business loans, which require you to put up some form of collateral, take some of the risk off of lenders, and therefore allow them to offer more favorable terms. To create our list of the best secured business loans, we collected hundreds of data points across more than 20 business loan lenders. We evaluated almost 30 factors, including interest rates, fees, loan amounts, borrower requirements, and more.

Best Secured Business Loans of 2023

Best for Micro-Businesses : American Express

American Express Logo

American Express

  • Types of Secured Loans: Line of credit
  • Loan Amounts: $500–$250,000
  • Loan Terms: 6 to 18 months
Pros & Cons
  • Low minimum annual revenue required

  • Amex customers can get pre-approved

  • Fast approval process

  • Good option for short-term goals

  • Monthly fee structure can get pricey

  • Minimum withdrawal is much higher on 12- and 18-month terms 

  • Late fees

Why We Chose It

American Express Business Blueprint, formerly Kabbage Funding, offers secured loans for small business owners who are just starting out and may not have the best credit or tons of revenue. Each loan requires a personal guarantee, however.

Existing Amex customers can pre-qualify for a secured business line of credit or loan without impacting their credit (though a hard pull will be used once you go forward with the application). 

Because Amex only requires $3,000 in monthly revenue, even the smallest businesses may be able to access funding. Depending on your financial and credit status, Amex will determine how high your line of credit will be, as well as the monthly fee you’ll pay. The fee range is wide, so you could end up paying as much as 27% per month or as little as 3%.

The application process is super fast, and funds typically hit your bank account within three business days.

Borrower Qualifications
  • Minimum credit score/range: 640
  • Minimum annual business income: $36,000
  • Minimum years in business: 1
  • Available in all 50 states and D.C.

Best With a Variety of Loan Options : Rapid Finance

Rapid Finance

Rapid Finance

  • Types of Secured Loans: Merchant cash advance, working capital loan
  • Loan Amounts: $5,000–$10 million
  • Loan Terms: 6 to 36 months
Pros & Cons
  • Multiple business financing options

  • Flexible payments (daily, weekly, or monthly)

  • Excellent customer reviews

  • Interest rates and fees are not disclosed

  • Not transparent about loan qualifications 

Why We Chose It

If you’re not sure what the best type of business financing is for your needs, and you know that you may not qualify with a traditional lender, Rapid Finance will likely have a product for you. Two of its options—asset-based loans and merchant cash advances—rely on collateral, while term loans, lines of credit, and invoice factoring are also available.

Rapid Finance has stellar customer reviews, which says something about its products and customer service. As far as pricing and eligibility, you won’t get much information online unless you request a quote. The company does make it a point to stress that it may be more lenient than traditional lenders when it comes to personal credit score, however.

As the name implies, if you are approved, you can get money in hand quickly (sometimes within hours) once you initiate the application process.

Borrower Qualifications
  • Minimum credit score/range: Not disclosed
  • Minimum annual business income: Not disclosed
  • Minimum years in business: Reviews last three months of business financials

With some secured business loans, the lender will file a Uniform Commercial Code (UCC) financing statement, which places a lien on your business assets. It will remain in place until the loan is repaid. 

Best for Established Businesses : Bank of America

Bank of America logo

Bank of America Corporation

  • Types of Secured Loans: Term loan, line of credit
  • Loan Amounts: Starts at $25,000 
  • Loan Terms: Up to 60 months; LOC revolves with annual renewal
Pros & Cons
  • Competitive interest rates

  • Preferred Rewards for Business member discount

  • Military veterans can get loan discounts

  • Upfront and renewal fees

  • Minimum annual revenue may be too high for some

  • Application is only by phone or in person

Why We Chose It

The Bank of America Secured Business Advantage term loan and line of credit offer established businesses—operating for two or more years, and earning at least $250,000 in revenue—access to credit lines starting at $25,000. Borrowers can choose what they’d like to put up for collateral, such as a blanket lien on general assets, a certificate of deposit, or other assets. 

The starting interest rate is competitive, but your rate depends on creditworthiness, your relationship with the bank, and other factors.

You’ll have to speak with a bank loan officer to process your application, either in person or over the phone—there’s no online application. The officer can assist with any questions you may have. The calculator tool on the website can also give you an idea of what your payment amounts would be based on interest rate and term.

Borrower Qualifications
  • Minimum credit score/range: Not disclosed
  • Minimum annual business income: $250,000
  • Minimum years in business: 2

For brand new businesses trying to establish their business credit, Bank of America also has a cash-secured line of credit. The amount of your cash deposit serves as your credit line, and as you draw and make regular payments back, your business credit will improve. 

Best From a Fintech : OnDeck

On Deck

On Deck

  • Types of Secured Loans: Term loan
  • Loan Amounts: $5,000–$250,000
  • Loan Terms: Up to 24 months
Pros & Cons
  • Same-day funding may be available

  • No hard credit check when you apply

  • Good customer reviews

  • High APR

  • Daily or weekly payments required

  • Not available for every industry 

Why We Chose It

OnDeck is a good choice if you’re looking for a fast funding process—in many cases, within the same business day. Because it’s an alternative lender, OnDeck may approve borrowers that aren’t able to get short-term business loans from traditional banks.

Though there are various fees and the APR will likely be high, most customers are satisfied with OnDeck as a lender. While OnDeck loans don’t use collateral, one of the requirements is agreeing to a general lien on the assets of your business. 

Not every business will be able to work with OnDeck, however, including those that are located in Nevada, North Dakota or South Dakota, or in industries considered higher risk.

Borrower Qualifications
  • Minimum credit score/range: 625
  • Minimum annual business income: $100,000
  • Minimum years in business: 1

Best for Young Businesses : Credibly

Credibly logo


  • Types of Secured Loans: Line of credit, working capital loan, equipment loan, merchant cash advance
  • Loan Amounts: Up to $250,000
  • Loan Terms: Not disclosed
Pros & Cons
  • Only have to be in business for 6 months

  • Pre-qualification available

  • Strong customer service reviews

  • Revenue requirement is significant  

  • Origination fee 

Why We Chose It

Many lenders require a year or two in business in order to qualify for lending products, but with Credibly, you just have to be operating for six months. If your business is a fairly young startup and in need of a cash infusion, Credibly’s line of credit may be a good solution. 

You will have to have a good amount of business income and decent personal credit score to qualify, but Credibly also takes other factors into account, like the health of your business and your collateral. 

If you meet qualifications and are OK with paying fees, you should expect a strong customer experience, as Credibly is highly rated.

Borrower Qualifications
  • Minimum credit score/range: 650+
  • Minimum annual business income: $240,000
  • Minimum years in business: 6 months

Best for Low Credit : Lendio

Lendio logo


  • Types of Secured Loans: Line of credit
  • Loan Amounts: $1,000–$5,000,000
  • Loan Terms: 1-2 years
Pros & Cons
  • Does the lender research for you

  • Credit score requirement is low

  • Compare offers with no hard credit check 

  • Funding can take up to 2 weeks 

  • You may get contacted by lenders

Why We Chose It

Lendio is a third-party aggregator of business loans. The way it works is you apply online, which takes about 15 minutes, and then get a list of potential lender matches. Lendio representatives can help you understand which one is the best match for your needs. Once you decide and are approved, you will receive funding.

You have the choice as to whether you want to apply for a secured or unsecured loan. The secured route has less strict requirements and potentially better rates. Examples of collateral that Lendio’s lender network accepts include future credit card sales or an interest in your business.

Borrower Qualifications
  • Minimum credit score/range: 560
  • Minimum annual business income: $50,000
  • Minimum years in business: 6 months

Final Verdict

When it comes to secured business loans, finding the right lender involves looking closely at eligibility requirements and deciding which type of loan is best for your needs. For the smallest businesses, American Express offers the best secured business line of credit, but if you’re looking for different loan options, then Rapid Finance is definitely worth a look.

If you have a unique situation, such as being in business just a short time, then lenders like Credibly could be a good fit. Or, if you’re more established and looking to leverage a banking relationship, Bank of America has perks for its business customers looking for loans. To access cash super fast, it’s hard to beat OnDeck’s same-day funding. But ultimately, if you’re unsure where to start, Lendio’s matching service can connect you with potential lenders that meet your criteria.

Compare the Best Secured Business Loans

Lender Types of Secured Loans Loan Amounts Loan Terms
American Express Line of credit $500–$250,000 6-18 months
Rapid Finance Merchant cash advance, Working capital loan $5,000–$10 million 6-36 months
Bank of America Term loan, line of credit $25,000 and up Term up to 60 months; LOC revolves with annual renewal
OnDeck Term loan $5,000–$250,000 Up to 24 months
Credibly Line of credit, working capital loan, equipment loan, merchant cash advance Up to $250,000 Varies by lender
Lendio Line of credit $1,000–$5,000,000 1–2 years

Guide to Choosing the Best Secured Business Loan

Factors to Consider When Getting a Secured Business Loan

When looking into small business loans, look carefully at the following factors that impact the cost of borrowing:

  • Interest rate and APR: The interest rate is important, but the APR factors in additional fees, like origination fees. Focusing on APR offers a better comparison.
  • Fees and lender charges: Some lenders will load you up with various fees, from origination to monthly maintenance to late fees and more. Look those over carefully, as they can quickly add up.
  • Minimum and maximum loan amounts: Make sure a prospective lender offers the amount of funding that you’re aiming for so you don’t under- (or over-) borrow.
  • Required assets to secure the loan: Lenders accept different types of collateral, whether it's a general lien on your assets, equipment, inventory, or future sales. Be sure you’re comfortable with what you’re putting up if you are unable to pay.
  • Ability to repay the loan: Some loans require daily or weekly repayment while others are monthly. Do some careful calculations to ensure that you will have the ability to meet your repayment obligations.

How to Get a Secured Business Loan

  • Research the loan program. Make sure you meet minimum eligibility requirements, and that the repayment terms and loan amounts are in your preferred range. Decide if you want a term loan or line of credit. If the option is available, you can also pre-qualify so you can get a better sense if you’ll be approved.
  • Begin the application process. For some lenders, you can do this online, while others require a phone call or in-person meeting. 
  • Gather your documentation. You may have to submit personal identification documents, business banking statements, tax returns, information about any assets you’re putting up for collateral, etc.
  • Complete the application. Once your application is done, be responsive if any further information is needed. You may be asked to agree to a Uniform Commercial Code (UCC) financing statement, which creates a lien on your business, or sign a personal guarantee.
  • Receive your funding. Once your loan is approved, your funding should arrive within a few business days. After that, stay on top of your repayment schedule to build a strong business credit history and stay in good standing with your lender.

Types of Secured Business Loan Collateral

Business lenders may accept different types of collateral. Some examples include: 

  • Business assets: Any items of value within your business such as raw materials, intellectual property, real estate, etc.
  • Financial assets: Accounts receivable, CDs, cash reserves or other assets that can easily be converted to cash
  • Equipment: Large machinery, vehicle fleets, computers, or any other equipment that’s used to run your business
  • Invoices: Instead of your customers paying you, their payments would go to your lender to pay back your debt.

Frequently Asked Questions

  • What’s the Difference Between Secured and Unsecured Business Loans?

    Secured business loans are backed by something of value that you use as collateral. If you don’t repay your loan, the lender can take possession of your collateral. Unsecured business loans do not use collateral, putting more risk on the lender. As such, you may be able to get more favorable rates and terms or find less stringent requirements with a secured business loan.

  • Can You Get a Secured Loan With Bad Credit?

    Having bad credit does make getting a business loan more challenging, but a bit less so if it’s a secured loan. Because you are putting up collateral, the lender knows that it has some financial protection and may offer more wiggle room when it comes to credit requirements.

  • How Long Does It Take to Get a Secured Business Loan?

    Getting a secured business loan can take anywhere from one day to a couple of weeks. It depends on what the application process is like, and how much you are trying to borrow.


Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of secured business loan lenders. To rate providers, we collected hundreds of data points across more than 20 business loan lenders. We evaluated those lenders based on nearly 30 factors, including interest rates, fees, loan amounts, borrower requirements, and national availability.

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  1. SBA. “Fund Your Business.”