in contrast to unsecured line of credit, secured line of credits are advantageous because it typically allows the borrower to have access to a far greater sum of money at significantly lower interest rate. Credit limits can be 10 times higher for secured line of credits because the borrower put up a collateral for the loan. One of the  most common form of collateral is the company’s current operating assets.

Business owners who are considering secured line of credits might as well shop around to compare offers from different business lender, since terms can and will vary widely. Interest will also vary according to the business lender you choose. So business owner should compare such rate and weight them in.