Alternatives to a secured business loan

2 min read

No asset pledgedThe goal

Faster set-upThe bonus

3 routesCompared

Why avoid secured borrowing

A secured loan offers a lower rate but at a price: an asset — often property — is charged, and can be lost if you cannot repay; the set-up is slow, with valuations and legal work. If you would rather not put an asset on the line, or need funds faster than a secured deal allows, several alternatives raise money without a charge over your property. See secured vs unsecured and when to pledge an asset.

The alternatives

Alternative	What secures it instead
Unsecured loan	Nothing — company affordability
Invoice finance	Your unpaid invoices
Asset finance	The funded item itself

An unsecured loan is fastest and puts no asset at risk. Invoice finance is secured on your invoices, not your property. Asset finance is secured on the item you are buying, not your existing assets. Each keeps your premises and equipment clear.

Watch the guarantee

Avoiding a charge over an asset is not the same as avoiding all personal risk — check whether a personal guarantee is required, which exposes your own assets even on an 'unsecured' loan. The cleanest protection is lending that is both unsecured and free of a personal guarantee. See no personal guarantee loans and alternatives to a personal guarantee.

The Credicorp view

Credicorp lends unsecured to limited companies with no personal guarantee — no charge over your property, no personal exposure, decisions in days. Compare our business loans or register to apply. Educational content, not financial advice.

Frequently asked questions

What are the alternatives to a secured business loan?

An unsecured loan (secured on nothing but company affordability), invoice finance (secured on your unpaid invoices) and asset finance (secured on the item you are buying). Each raises funds without a charge over your existing property or equipment, and unsecured lending is usually the fastest.

Can I borrow without pledging an asset?

Yes. Unsecured lending relies on the company's affordability rather than a charge over an asset, so nothing of yours is pledged. Invoice and asset finance are secured on your invoices or the funded item rather than your existing property, keeping your premises and equipment clear.

Does unsecured mean no personal risk?

Not always. Many unsecured loans still require a personal guarantee, which exposes your own assets if the company cannot repay. Only lending that is both unsecured and free of a personal guarantee keeps both company and personal assets clear.