For small and medium enterprises (SMEs), accessing financing is a critical step toward achieving growth, managing cash flow, or addressing unexpected challenges. When choosing a business loan, one key decision is whether to opt for a secured or unsecured loan. Each option has unique features, benefits, and risks, making it essential for SMEs to understand the distinctions and make an informed choice. What Are Secured and Unsecured Business Loans? Secured Business Loans A secured loan requires collateral—an asset pledged to the lender as security. Collateral can be a real estate, equipment, inventory, or accounts receivable. If the borrower defaults, the…
