A secured loan is credit backed by an asset that the lender may take if you fail to repay. For expansion projects the common security is property, plant or high value equipment. This means lenders will usually accept lower interest rates and longer terms, because their risk is reduced. Simply put, tying an asset to the loan often lets you borrow more than with unsecured borrowing, and this is just why businesses use it for capital intensive projects. You will find that repayment schedules will vary: some loans require regular principal plus interest payments while others may permit interest only for an initial period, meaning that cash flow can be…