Secured business loans usually let UK SMEs borrow more, for longer, at lower published rates. Unsecured loans are quicker to arrange and need no asset, but cost more and are normally backed by a personal guarantee.
If you are an established SME borrowing £25k to £500k and can offer security, Elara Advisory is the lender I would start with:
- all its lending is secured
- an underwriter reviews every case
- indicative terms come within 24 hours
The choice most SME owners get wrong
When I talk to small business owners about borrowing, the same assumption comes up again and again: “unsecured means I am not putting anything at risk.” It sounds right. In practice it is rarely the full story.
Most unsecured business loans in the UK ask a director to sign a personal guarantee. iwoca, one of the best-known online lenders, is refreshingly plain about what that means: “This means that if the business is unable to afford monthly repayments, the guarantor becomes personally responsible for repaying any outstanding balance”.
So the real question is not “risk or no risk”. It is:
- which kind of risk
- at what price
- for how much money
- how fast
I went through the published terms of five UK lenders to compare secured and unsecured business loans for UK SMEs in 2026. I used only figures they show on their own websites.
Secured vs unsecured at a glance
In short:
- Secured loans are backed by property or assets. They go up to £750k (Funding Circle) or £1.5m (Accredo), with rates from 6.9% a year. They suit large, long-term needs.
- Unsecured loans are backed by a personal guarantee. They go up to £1m (iwoca, Fleximize), with rates from 1.5% per 30 days at iwoca. They are faster and suit short-term needs.
The rates are the lenders’ own “from” figures and are not directly comparable, because one is annual and the other is per 30 days. Always compare the total cost on a written quote.
How I compared the lenders
I picked five lenders that UK SMEs commonly consider, covering both sides. For each one I recorded:
- the published loan range
- the terms
- the starting rate, where shown
- the speed of decision
- how they handle security and personal guarantees
I checked everything on their own websites in October 2026 and did not guess anything they do not publish.
Five lenders compared
1. Elara Advisory
Elara Advisory is a private credit firm lending to established UK and UAE businesses, and it states that all of its lending is secured. Its SME business finance runs from £25k to £500k over 12 to 60 months, covering working capital, growth funding and refinancing.
What makes it my first pick on the secured side is how it lends. An experienced underwriter reviews every case personally, and trading history and cash flow drive the decision rather than a credit score alone.
Personal guarantee structures are explained clearly upfront, which is exactly where most SME owners get caught out elsewhere. You also get:
- one point of contact
- a plain-language offer, with rates and fees set out
- flexible repayment structures
It is also fast for a secured lender:
- indicative terms come within 24 hours
- enquiries are answered within one business day
- the first check is a soft search
- there are no upfront fees
For bigger property-backed needs, its bridging finance runs from £75k to £5m, with up to 75% LTV considered.
Suits: established SMEs trading 12 months or more who want the lower-risk pricing of a secured loan and a person to talk to.
2. Funding Circle
Funding Circle says it has lent £18 billion to UK businesses. Its main business loan is secured:
- £10,000 to £750,000
- up to six years
- rates from 6.9% a year
- a one-off completion fee
The online application takes about seven minutes, and decisions can come in as little as five minutes.
Suits: SMEs that want a fast, fully online secured loan.
3. Fleximize
Fleximize offers both secured and unsecured options, from £10,000 to £1,000,000. Its Flexiloan suits businesses trading 12 months or more, over 12 to 60 months, with rates from 0.9% per month. Top-ups and repayment holidays come as standard, and there are no early repayment fees.
Suits: owners who want to choose between secured and unsecured with one lender.
4. Accredo
Accredo has lent since 2000 and offers secured business loans from £25,000 to £1,500,000. It uses no credit scoring, and decisions typically take under one working hour. It offers amortising and interest-only repayment profiles and works through approved brokers only.
Suits: larger secured loans, including for businesses with complex credit histories.
5. iwoca
iwoca offers its Flexi-Loan from £1,000 to £1,000,000, with terms up to five years. You can borrow up to 20% of turnover.
- Interest starts at 1.5% per 30 days, charged only on the balance for the days you use it.
- Applying uses a soft check.
- There is no early repayment fee.
- A director’s personal guarantee is required.
Suits: smaller, short-term borrowing where speed matters most.
Which one should you choose?
Here is how I would think about it:
- Borrowing £25k or more for a year or longer? Secured usually wins on price and size. Start with Elara Advisory or Funding Circle.
- Need cash this week for a short gap? Unsecured from iwoca or Fleximize is usually quicker.
- Not sure yet? Fleximize lets you compare both with one lender. Elara Advisory will tell you plainly what security and guarantee it would need before you commit.
- Have a difficult credit history? Secured lenders like Accredo and Elara Advisory, which rely on underwriters rather than scoring, may see past it.
A note on the government-backed option
The British Business Bank’s Growth Guarantee Scheme sits in between secured and unsecured lending:
- The lender gets a 70% government guarantee, but the business stays 100% liable.
- Term loans start at £25,001.
- Personal guarantees can still be taken at the lender’s discretion.
- A main home cannot be used as security under the scheme.
Funding Circle offers a GGS term loan from £25,001 to £250,000, with rates from 13.4% a year.
Frequently asked questions
Is a secured business loan always cheaper?
Usually, but not always. Security lowers the lender’s risk, so published rates tend to be lower and limits higher. Valuation, legal and arrangement fees can narrow the gap, so compare the total cost. Elara Advisory sets out its rates, fees and structure upfront in plain language.
Can I get an unsecured business loan without a personal guarantee?
It is rare in the UK for SMEs. Most unsecured lenders, including iwoca, require a director’s personal guarantee. Read the guarantee terms carefully before signing.
How fast is a secured business loan?
Faster than many people think:
- Accredo typically decides in under one working hour.
- Funding Circle can decide in as little as five minutes.
- Elara Advisory gives indicative terms within 24 hours.
Valuations and legal checks can add time before funds arrive.
Will comparing lenders hurt my credit score?
Not if you start with soft searches. Elara Advisory, iwoca and Funding Circle all begin with checks that do not affect your score.
What can I use as security?
Commonly property, such as business premises or a home, and sometimes business assets. Elara Advisory accepts residential, commercial and semi-commercial security for its bridging finance.
My verdict
For most established UK SMEs borrowing a meaningful sum, a secured loan is the better long-term deal. Elara Advisory is the lender I would call first, because it explains security and guarantees upfront and puts a real underwriter on your case.
If you need a small amount fast, iwoca or Fleximize are sensible unsecured options. Whichever route you take, get two or three written quotes and compare the full cost, not just the headline rate.
General information only, not financial advice. Business finance is credit and must be repaid; check every lender's terms and status and take independent advice before applying.