Also known as collateralized loans, secured business loans are a common way to finance small businesses. They’re secured because the borrower offers collateral in the form of a personal guarantee or business assets. If the borrower defaults on the loan, lenders recoup their losses with the collateral.
We offer a variety of loans to help small business owners make their dreams a reality.
When it comes to collateral, businesses can put up any of their assets that lenders can turn into cash in the event that they can’t pay the loan.
Secured loans can take a variety of forms, but are most often term loans, in which borrowers receive a lump sum up front. Businesses then repay the loan amount with interest over a determined period of time.
We take pride in our roots in the same community where our members live and work. Members like Ogden family-owned business Roe Pharmacy, whose owners, Kimberly and Hal, have used Wasatch Peaks for nearly twenty years.
"Best interest rates I could find. Easy to do business with."
You probably have a few questions about getting started. Here are the answers to some frequently-asked questions asked by entrepreneurs and small-business owners just like you.
The kind of assets you put up will vary depending on the type of loan you take out. However, generally speaking, these are the types of collateral businesses use to secure their loans:
Typically, SBA loans are approved by the lender. The approval process can take a variety of factors into account. Depending on the kind of loan for which your business is applying, the specific process will vary.
For example, with a 7(a) loan of up to $350,000 (not including Express Loans), applicants’ credit scores are reviewed using the FICO® Small Business Scoring Service® product (SBSS). This process is to ensure consistency and objectivity in the approval process.
The SBA offers different term loans up to 25 years. The repayment term depends on whether it’s an equipment loan (i.e. machinery), working capital, or a commercial real estate loan.
With a business line of credit, businesses have a draw period, generally of about 10 years, followed by a repayment period of about 20 years, during which they can no longer borrow.
Take some stress and confusion out of running a business and consolidate your banking at one institution. Wasatch Peaks Credit Union membership gets you access to our other business services that can give your business an edge while helping you stay organized.
A business checking account means you can take credit card payments from customers, offers liability protection, helps you monitor cash flow, and simplifies your taxes. Not to mention, you will need some place for your SBA loan to be deposited.
Business credit cards and savings accounts are also a good idea to help you keep track of finances and to take advantage of benefits.
A business credit card can also be a good route if you determine that a secured business loan isn’t right for your business right now. Unsecured business loans are relatively uncommon, so if you’re making smaller purchases on a short-term basis, credit cards can be the way to go.
At least one business partner needs to be a Wasatch Peaks Credit Union member to qualify for any of our business products and services.
Residents, students, members of houses of worship, and individuals who work or volunteer in Weber, Davis, and Morgan counties are all eligible for membership.
Take advantage of shared branching at over 30,000 ATMs around the country, as well as nearly 5,000 branches and more than 2,000 self-service locations.
We’re proud members to serve fellow members of the community, helping them set financial goals and to achieve them, making their dreams a reality.
If you’re considering applying for a secured loan through Wasatch Peaks Credit Union, don’t wait–become a member!