Best Secured Business Loans for July 2024

American Express Business Blueprint, formerly Kabbage Funding, offers secured loans for small business owners who are just starting and may not have the best credit or tons of revenue. Each loan requires a personal guarantee, however.

Existing Amex customers can pre-qualify for a secured business line of credit or loan without impacting their credit (though a hard pull will be used once you go forward with the application). 

Because Amex only requires $3,000 in monthly revenue, even the smallest businesses may be able to access funding. Depending on your financial and credit status, Amex will determine how high your line of credit will be, as well as the monthly fee you’ll pay. The fee range is wide, so you could end up paying as much as 27% per month or as little as 3%.

The application process is super fast, and funds typically hit your bank account within three business days.

If you’re not sure what the best type of business financing is for your needs, and you know that you may not qualify with a traditional lender, Rapid Finance will likely have a product for you. Two of its options—asset-based loans and merchant cash advances—rely on collateral, while term loans, lines of credit, and invoice factoring are also available.

Rapid Finance has stellar customer reviews, which says something about its products and customer service. As far as pricing and eligibility, you won’t get much information online unless you request a quote. The company does make it a point to stress that it may be more lenient than traditional lenders when it comes to a personal credit score.

As the name implies, if you are approved, you can get money in hand quickly (sometimes within hours) once you initiate the application process.

The Bank of America Secured Business Advantage term loan and line of credit offer established businesses—operating for two or more years, and earning at least $250,000 in revenue—access to credit lines starting at $25,000. Borrowers can choose what they’d like to put up for collateral, such as a blanket lien on general assets, a certificate of deposit, or other assets. 

The starting interest rate is competitive, but your rate depends on creditworthiness, your relationship with the bank, and other factors.

You’ll have to speak with a bank loan officer to process your application, either in person or over the phone—there’s no online application. The officer can assist with any questions you may have. The calculator tool on the website can also give you an idea of what your payment amounts would be based on interest rate and term.

OnDeck is a good choice if you’re looking for a fast funding process—in many cases, within the same business day. Because it’s an alternative lender, OnDeck may approve borrowers who can't get short-term business loans from traditional banks.

Though there are various fees and the annual percentage rate (APR) will likely be high, most customers are satisfied with OnDeck as a lender. While OnDeck loans don’t use collateral, one of the requirements is agreeing to a general lien on the assets of your business. 

Not every business can borrow from OnDeck, including those that are located in Nevada, North Dakota, or South Dakota, or in industries considered higher risk.

Many lenders require a year or two in business to qualify for lending products, but with Credibly, you just have to be operating for six months. If your business is a fairly young startup and in need of a cash infusion, Credibly’s line of credit may be a good solution. 

You will have to have a good amount of business income and a decent personal credit score to qualify, but Credibly also takes other factors into account, like the health of your business and your collateral. 

If you meet qualifications and are OK with paying fees, you should expect a strong customer experience, as Credibly is highly rated.

Lendio is a third-party aggregator of business loans. The way it works is you apply online, which takes about 15 minutes, and then get a list of potential lender matches. Lendio representatives can help you understand which one is the best match for your needs. Once you decide and are approved, you will receive funding.

You have the choice as to whether you want to apply for a secured or unsecured loan. The secured route has less strict requirements and potentially better rates. Examples of collateral that Lendio’s lender network accepts include future credit card sales or an interest in your business.