Published on 13 October 2025
Posted in
On the majority of business loan applications, they will ask whether you are a homeowner or a renter. This may cause some panic for homeowners who do not want a loan taken against their home.
Whilst there are many alternatives to secured loans (business loans taken out against your home or other personal assets), it is important to understand why lenders will ask whether or not you are a homeowner.
Banks often see homeowners as less of a risk, when reviewing applications for a business loan. From their perspective if, in the unfortunate event, you were unable to make any further repayments, they (the bank) could be able to obtain the missing funds from the value of the house.
If you have been through the vetting process in obtaining a mortgage to purchase your home, you will have undergone similar checks to those carried out in the business loan application. Seeing that you are a homeowner and have been successful in checks against your financial history, gives banks and lenders far more confidence in your ability to repay.
It can be more favourable to be a homeowner when trying to secure a business loan, for the reasons above but there is an option for renters and homeowners not comfortable using their home as collateral.
An unsecured business loan is funding that isn’t tied to any personal assets. Lenders look at business’s financial history, turn over and plan for the funds; whether it be for expansion, cashflow management or other investments before making their decision on the application. It’s important to remember that whilst unsecured business loans are often faster to pay out, they can be paired with larger interest rates.
Overall, Unsecured business loans are a great alternative for homeowners who do not want their home to be used as collateral when trying to obtain funding.
So to summarise – For banks, lenders or brokers, asking if you are a homeowner helps to further understand your financial history, health and ability to repay business loans, and does not necessarily mean your home will automatically become collateral when you apply.
Feeling more confident about applying for a quick business loan? Contact Crown Business Finance for help in finding the most ideal loan for your business.
Get My Loan!
Crown Business Finance Limited is an independent asset finance brokerage not a lender, as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. We are not independent financial advisors and so are unable to provide you with independent financial advice. Crown Business Finance Limited will receive payment(s) in the form of commission from the finance provider if you decide to enter into an agreement with them. We work with both discretionary and non-discretionary commission models. Commission payments are factored into the interest rate you pay.
Crown Business Finance Limited is an Appointed Representative of AFS Compliance Limited which is Authorised and Regulated by the Financial Conduct Authority FRN: 625035
Crown Business Finance Limited aims to provide our customers with the highest standards of service. If our service fails to meet your requirements and you would like to report a complaint; please click on the link below: Complaints – AFS
All calls to and from our office phone number are recorded for training, monitoring, and regulatory purposes. This is to ensure we maintain high-quality service standards and comply with applicable regulations. By contacting us, you consent to the recording of calls.
Crown Business Finance Limited
Crown House, 14 Davy Ave, Milton Keynes, MK5 8PL
Company number: 12091513
VAT Number: GB328814584
ICO Number: ZA534022
© 2025Crown Business Finance - All Rights Reserved