Secured Lending

Many finance providers offer secured lending, sometimes called asset-backed lending, to businesses and consumers. It is a finance facility that is secured against an asset, for example a car. A mortgage is an example of a secured loan.

The asset provides collateral for the finance provider should the customer become unable to make the agreed repayments. The finance provider may recover the asset and sell it to regain some of their losses, although this is always seen as the last option.  

The benefit of secured finance for customers is that, because of the reduced risks, lenders are able to offer more flexible terms and conditions. See “Unsecured Lending".

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