What is the eligibility for a secured business loan?

Secured business loans are typically granted to businesses that can provide collateral, such as property, machinery, or inventory. Lenders often consider the following factors when assessing eligibility for a secured business loan:   

• Business Age: The business should be established for a minimum period, usually 1-3 years.
• Annual Turnover: The business should have a minimum annual turnover to demonstrate financial stability.
• Collateral Value: The value of the collateral should be sufficient to cover the loan amount.
• Business Plan: A well-structured business plan outlining goals, financial projections, and risk management is often required.
• Debt-to-Income Ratio: Lenders assess the business's ability to take on additional debt by evaluating its current financial obligations.
• Legal and Tax Compliance: The business should be legally registered and up to date with tax obligations.
• Industry Experience: Some lenders may require the business owner to have relevant experience in the industry.

Note: Specific requirements can vary depending on the lender and loan type.