2 min read
Definition
A secured facility is backed by a charge over an asset, so the lender can recover value on default — which lowers the risk and the margin. An unsecured facility has no such backing, so it is priced higher to compensate. The gap can be several percentage points.
In plain terms
Pledge an asset and you usually pay less; borrow on your word alone and you pay more. Security is a lever on the rate.
Why it matters for your company
Weigh the cheaper secured rate against putting an asset on the line. See how lenders price risk via how lenders price risk into your rate.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.