Secured business loans are provided to borrowers against collateral or valuable assets held by a person or business. These loans help small business owners with a stimulus to enhance capital investment activities and allow them to buy essentials.
These loans are easy to obtain because they come with a caveat. If the borrower fails to pay the money back, the lenders have the right to take the assets in their possession.
Unsecured loans do not invite any collateral, and the loans are provided based on the businesses’ trading history, profile, and ratings. The main difference between secured and unsecured loans is that the former has a lower interest rate. In this article, we will be detailing the Swoop secured business loan.
Features of a Swoop Secured Business Loan
In the majority of secured business loans, around 70% to 80% of the value of assets is given as a loan to the users. The loan term is also flexible, and the user can get a term between one year and five years, along with an interest rate of 6% to 10%.
However, the interest rate can differ depending on the term of the loan. It decreases with the number of years. Most importantly, since these are secured loans, the application process does not take much time. It is a speedy process from start to finish.
As a business owner, you may need a loan for multiple purposes, and Swoop Loan services provide loans for a broad range of reasons. Lastly, any type of business can get a secured loan, as long as they have valuable assets to offer for collateral.
With secured loans, lenders prefer assets that have a higher value and will be in demand in the future. Due to this preference, they will want to give loans against property, commercial vehicles, and commercial machinery.
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Pros and Cons of a Swoop Secured Business Loan
One of the best things about these loans is the lower interest and a higher term period. Since the lenders are more interested in the asset that is kept as collateral, they will also not look much at the business's type and current financial position.
However, this also gives the businesses a way to secure some funding and keep the enterprise running. But, in these sorts of loans, if the users are not able to pay the amount back, there is a huge risk of losing the asset.
Plus, not all lenders will prefer soft assets like unsold inventory held by the business owner.
Secured Business Loan Fees
- Interest Rate: 6% to 10%
- Loan Term: 1 to 5 years
- Your collateral will be taken by the bank if you fail to pay your loan.
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Secured Business Loan Eligibility
Users wanting to get a secured business loan from Swoop Online can do so against fixed and valuable assets. However, they must first show the asset's ownership, which must be in the name of the business or the owner.
Furthermore, you should be a resident of the UK to apply for this loan and also the owner of the business for which the loan is secured.
How to Apply for the Secured Business Loan From Swoop
To apply for the loan with Swoop Loan online, you first need to create an account on Swoop's website. Since these are online loans, there are no provisions to fill out the application form offline or by visiting the premises.
The online process after you create a free account starts, whereby you have to provide the business details and other essential information via the application form. The secured business loans are processed quickly and promptly, as you are getting them against a valuable asset.
Bank Address and Contact
Although you will get the required information online, you can learn more about Swoop's services and the secured business loans, by contacting them at 0203 514 3044. The main office for Swopp in the UK is also located at 66-67 Newman Street Fitzrovia W1T, 3EQ London.
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Conclusion
Many businesses will find themselves short on cash for an essential purchase. This is where business loans can step in to take the pressure away.
In this scenario, services like Swoop Loan Online secured business loans help provide a simple solution to getting the money you need fast.
Note: Consider the risks involved in using credit products before applying by consulting the issuing institution’s terms and conditions.
