Secured vs unsecured business loans in Ireland: how to choose

Security is a legal right that lets a lender recover what it is owed from an asset if the borrower defaults. For Irish limited companies, the common forms are:

• Fixed chargeSecurity over a specific asset, such as property, a vehicle or named equipment, which the company cannot sell or dispose of without the lender's consent.: a charge over a specific asset, such as a piece of machinery or book debts, which the company cannot sell or deal with freely without the lender’s consent.
• Floating chargeSecurity over a changing pool of assets, such as stock, book debts or cash, which the company can continue to trade with in the normal course of business.: a charge over a class of changing assets, such as stock, which the company can keep using in the normal course of business until the charge “crystallises”, for example on default.
• DebentureA legal document in which a company gives a lender security over its assets, usually through a combination of fixed and floating charges.: the document that creates the charges, often a combination of fixed and floating charges over all the company’s assets. See debenture.
• Asset security: in hire purchaseA form of asset finance where the company pays for an asset in instalments, often after a deposit, and takes ownership once the final payment and any option-to-purchase fee are made. and leasing, the finance company owns the asset until the end, so ownership itself is the security.
• Property: a mortgage or charge over property the company owns, such as its premises. Welcome Finance does not arrange property finance.

Registration at the CRO

Under the Companies Act 2014, a charge created by a company must be registered with the CRO within 21 days of its creation, using Form C1 or the two-stage C1A and C1B procedure. A charge not registered in time is void against a liquidator or any creditor of the company, and only the High Court can extend the time limit. Priority between charges is set by the date and time the CRO receives the filing, not the date the deed was signed. Lenders’ solicitors usually handle this, but it is one reason secured loansA loan where the borrower gives the lender a legal claim over assets, such as a fixed or floating charge in a debenture, which the lender can enforce if repayments are not made. take longer.

No. A personal guarantee is a promise by a director, or another person, to repay the company’s debt if the company does not. It is not a charge over company assets, but it can put the guarantor’s own assets at risk.

This matters because many “unsecured” business loans still need a guarantee. Linked Finance, for example, describes its business loans as unsecured but says it requires personal guarantees. If avoiding personal liability is your priority, read our guide to borrowing without a personal guarantee.

• What the lender relies on: secured, a charge over assets plus your trading; unsecured, your trading and often a personal guarantee.
• Typical amounts: secured lending can go higher, because the lender has an asset to fall back on; unsecured amounts are usually linked to turnover and cash flow.
• Term: secured loans and asset finance often run for several years, in line with the asset’s life; unsecured loansA loan where the company does not give the lender a charge over specific assets. are often shorter. Linked Finance, for example, publishes unsecured terms of 6 to 60 months.
• Cost: secured lending is usually cheaper, because the lender’s risk is lower; unsecured lending usually carries a higher rate.
• Speed: unsecured loans can be decided quickly; secured loans need legal documents, sometimes valuations, and CROThe State body that registers Irish companies and business names and keeps their public filings, including constitutions, director details, annual returns, financial statements and registered charges. registration.
• Fees: secured loans can involve legal and valuation costs; unsecured loans may have an arrangement feeA one-off fee for setting up a loan or facility, charged by the lender or a broker, either paid upfront or deducted from the funds advanced. instead.
• Flexibility: a debenture can restrict what the company does with its assets, such as selling equipment or giving security to another lender, without the lender’s consent.
• Risk if things go wrong: with security, the lender can enforce against the charged assets; with a personal guarantee, it can pursue the guarantor.

Published terms from non-bank lenders active in Ireland give a sense of the range, as checked on 22 October 2026:

• Linked Finance: unsecured business loans from €10,000 to €500,000 over 6 to 60 months, for companies with turnover over €100,000; the rate depends on the company’s credit grade. It requires personal guarantees.
• 365 Finance: unsecured funding from €10,000 to €250,000 based on monthly card revenue, with no collateral, repaid as a share of card sales rather than in fixed instalments.

The two show that “unsecured” covers very different products. One is a fixed-term loan backed by a director’s guarantee; the other is a card-linked advance with no fixed term. Compare the total amount repayableThe full sum a company will pay over the life of a loan or finance agreement, including the amount borrowed, interest and all fees. and the personal commitments involved, not just the label.

Mainly on how confident they are that your company can repay from trading. AIB, for example, says its decision rests mainly on the capacity of the business to repay, not only on the value of security, and that any security it asks for must be reasonable and proportionate. Security is a fallback, not a substitute for affordability.

In practice, lenders are more likely to ask for security when:

• The amount is large compared with your turnover or profit.
• The term is long, so the lender is exposed for years.
• The company is young, has thin margins or has had recent losses.
• The money is buying an asset that holds its value, such as machinery or vehicles.
• There are gaps in the company’s credit history or filing record.

For micro and small enterprises, regulated lenders must explain in writing why security is required and the possible consequences of giving it, under the Central Bank’s SME Lending Regulations. They must also offer an annual review meeting that includes the loans and security.

Yes, but the order matters. Between registered charges, priority is generally set by when the CRO receives each filing, so the first lender to register usually ranks first, subject to the type of asset and any agreement between the lenders. Many debentures also include a promise not to create further security without the existing lender’s consent. Before you offer security to a new lender, check what your current loan documents allow, and expect the new lender to ask for a CRO search of existing charges.

The SBCIA State-owned body that makes low-cost funding and loan guarantees available to Irish SMEs, farmers and fishers through participating banks and non-bank finance providers.’s Growth and Sustainability Loan Scheme is a useful example of the middle ground. The SBCI says loans of up to €500,000 under the scheme are generally unsecured, subject to certain exceptions, and that personal guarantees on loans over €500,000 are limited to 20% of the loan amount. Your company gets an eligibility code from the SBCI, then applies directly to a participating lender. See our SBCI loans page. Welcome Finance does not arrange SBCI loans.

An unsecured loan may suit you if

• You need a smaller amount for working capitalThe money a business has available to fund day-to-day operations, calculated as current assets, such as cash, stock and debtors, minus current liabilities, such as suppliers and short-term debt., stock, a tax bill or a short-term opportunity.
• The company has steady turnover but few assets to offer, which is common in services and hospitality.
• Speed matters more than the lowest possible rate.
• You plan to repay within one to three years.

A secured loan or asset finance may suit you if

• You are buying an asset with a long working life, such as machinery or vehicles. Asset finance uses the asset itself as security; see asset finance.
• You need a larger amount than unsecured lenders will offer on your turnover.
• A lower rate over a longer term matters more than speed.
• The company is comfortable with the restrictions a debenture brings.

If you are unsure, start with the purpose. Short-term needs are usually best matched with short-term, unsecured money, and long-life assets with longer, secured or asset-backed finance. Many companies use both: an unsecured facility for working capital and asset finance for equipment. The two can sit side by side, though a lender with a debenture over all assets may need to consent to new security.

1. Ask the lender to explain in writing why security is needed. Regulated lenders must do this for micro and small enterprises under the SME Lending Regulations.
2. Read exactly which assets are covered, and whether the charge is fixed, floating or both.
3. Check whether existing lenders already hold a charge, and whether their consent is needed.
4. Ask what restrictions the debenture places on selling assets or taking new finance.
5. Find out the legal and valuation costs, and who pays them.
6. If a personal guarantee is also required, get independent legal advice before signing.
7. Ask how and when the charge will be released at the end, and confirm the CRO record is updated when the loan is repaid.

The lender should release it, and the CRO record should be updated. A charge that has been fully repaid is recorded at the CRO using Form C6, the notice of full satisfaction. Ask your lender for a deed of release and confirm the CRO filing has been made. An old charge left on the register can confuse a future lender and slow down your next application.

Our lender panel may be able to help with unsecured business loans, short-term loans and working capital loans. Tell us what your company needs and we’ll tell you honestly whether our panel can help, or where to apply instead. We are paid commission by lenders. We do not charge your company a fee and never ask for payment upfront. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of Ireland. We work only with companies registered in Ireland (LTD, DAC, PLC or ULC).