Business financing is a very useful way for businesses to continue growing in times of uncertainty, and especially helpful for small or startup businesses. There are many financing options available to businesses of all types, but one that is extremely helpful is construction equipment loans. There are different types of construction equipment loans that offer different benefits. Below, we discuss what secured loans are and how they are beneficial for construction, transportation and energy businesses. 

What is a secured loan?

A secured loan is a type of loan that many businesses utilize. Secured loans are different from other types of business loans in that it requires the company to offer collateral, to secure the loan. Collateral includes free and clear construction equipment, fleet vehicles, over the road trucks among other assets Equify may consider.

The biggest advantage of a secured loan is that it is protected by an asset. If your company is using a secured loan to purchase a piece of equipment, that equipment can be used as collateral. Ultimately, a secured loan means that you can feel secure knowing that your loan will get repaid.

Secured vs unsecured loans

When it comes to pretty much any loan, there are two main types: secured and unsecured. The main difference between the two types of loans is that secured loans require collateral, while unsecured loans don’t require any. 

Examples of a secured loans include: 

  • Mortgage

  • Equipment loan

  • Home equity line of credit

  • Vehicle loans

Examples of unsecured loans include: 

  • Credit cards

  • Student loans

  • Personal lines of credit

Advantages of a secured loan

Secured loans offer many great advantages, especially for construction, transportation and energy businesses. Here are three main advantages of obtaining a secured loan. 

Longer repayment terms

A great benefit of secured business loans is that they can come with longer, or more flexible, repayment terms. Repayment terms are ultimately decided upon by the lender, but when collateral lowers the risk, lenders may offer a longer repayment plan. 

Higher borrower limits

Businesses may be eligible for a  higher borrower limit with secured loans compared to unsecured loans. Why is this? Collateral! (Are you seeing the trend?) Since offering collateral creates a less risky financial situation for the lender, the option for higher borrowing limits increases. 

ability to borrow the funds when you actually need them

Lastly, with a secured loan, you will be able to get the funds you need to continue growing your business, whenever you need them! Taking on new jobs may require a certain amount of capital that is not reasonably doable at certain times, but with a secured loan, you can gain the funds needed to continue operating and growing your business.  


Secured loans are a great way to gain the capital you need to purchase new equipment and machines for your business, and are especially beneficial for construction, trucking, manufacturing and other similar businesses. When searching for the best construction equipment loan, consider secured loans!  

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