Business loan can be categorised as secured and unsecured loans. Secured Business loan can be said as the loans in which collateral is required and an unsecured business loan could be sought without collateral.

You can seek a Secured Business loans through your home, business premises, land or any other valuable asset. It comes with a low interest rate and favourable terms as compared to an unsecured loan. Business loans can be taken for expanding your business horizons or for starting your new business venture.

The rate of interest may vary from lender to lender and it depends on some parameters. The first one can be your business reputation and goodwill (in case of existing business).The next thing can be your past profit record (in case of existing business).Thirdly how much amount you need to borrow. Lastly, equity in your collateral and business prospects. These are the things which are very much crucial for determining your interest rates in seeking a business loans.

Unsecured business loans can be sought for short term business purposes. They are generally being provided for short term only. The best advantage with an unsecured business loan you don’t have a repossession of your property, though a legal action can only be taken against you. There are lenders in U.K. who can provide you with a secured as well as an unsecured personal loan that also on competitive interest rates. The lenders in U.K. have a competitive environment so they can offer you with the competitive interest rates.