Are Small Business Loans Secured Or Unsecured?

What's the Real Difference Between Secured and Unsecured?

With a secured loan, the lender can claim the pledged asset if you default, so they extend larger amounts at lower rates. Equipment financing and commercial real estate loans are common secured examples; the asset itself backs the deal.

Unsecured loans don't tie to a specific asset, so approval rests more heavily on revenue, credit, and time in business. Most unsecured business loans still involve a personal guarantee, meaning you're personally on the hook even though no specific asset is pledged, but they fund faster because there's nothing to appraise or title.

Which Structure Fits Your Need?

Equipment Financing (Secured): The equipment is the collateral, $5,000 to $5M+, rates roughly 7-20%. Best for buying machinery, vehicles, or hardware.

Term Loan (Often Unsecured): Lump sum based on creditworthiness, $10,000 to $500,000+, rates ~8-30%+. Best for general growth without pledging assets.

Business Line of Credit (Either): Revolving capital, secured or unsecured depending on the lender. Best for flexible, recurring needs.

How Quordx Capital Works

Apply online in about 10 minutes. Upload 3-6 months of bank statements, your most recent business tax return, and your ID. Quordx Capital matches your profile to best-fit secured and unsecured lenders in our 50+ network and submits on your behalf. Decisions usually return within 24-48 hours.

What to Expect

If you have an asset to pledge, expect lower rates and larger amounts on a secured structure, equipment and real estate loans can run 7-20% and reach into the millions. If you'd rather not tie up collateral, unsecured options fund faster but price in more risk, often 8-30%+, and stronger credit and revenue are what push those rates down.

There's no single right answer, it depends on whether protecting your assets or minimizing your rate matters more for this particular need. Decisions land in 24-48 hours and funding in 3-7 business days. Quordx Capital charges borrowers nothing; the lender pays our commission only when your deal closes.