The most common type of business loan for SMEs is a secured Business Loan.  This more often will require collateral to secure the loan, meaning the business will need to provide collateral against property, inventory or tangible business assets. However, as a homeowner, your loan doesn’t have to be secured against it, meaning the business doesn’t need to provide collateral against property, inventory or tangible business assets. This allows businesses with limited tangible assets access to finance.

 

Perhaps the least understood reason that lenders ask about homeowner status is because of the wider implications it has about your personal credit history. Being a homeowner is important in this regard for two reasons. First, the process of buying a residential property usually involves a successful mortgage application, and therefore a variety of due diligence checks such as proof of your identity, income, nationality, and right to live in the UK. Homeownership also ties you to one address for the foreseeable future — which is another small detail that helps the lender see your application as lower-risk. 

 

Provide Finance helps you get the unsecured loan, as a home-owner,  you want, fast. With access to over 200 approved lenders, all with competing rates and terms to secure your business, we can put your enquiry in front of a range of pre-approved lenders where you can screen, shortlist and choose. Start matching today.