What is a secured business loan and how does it differ from an unsecured loan?

A secured business loan is a type of loan that requires the borrower to provide some form of collateral, such as property or equipment, to secure the loan. If the borrower fails to repay the loan, the lender can seize the collateral to recover the loan amount.

On the other hand, an unsecured business loan does not require any collateral. Instead, the lender evaluates the borrower's creditworthiness and financial history to determine the likelihood of repayment. Unsecured loans typically have higher interest rates than secured loans because they are considered riskier for the lender.

In summary, the key difference between a secured and unsecured business loan is the presence of collateral. A secured loan requires collateral while an unsecured loan does not.