UNSECURED BUSINESS LOAN

Unsecured Business Loan

Unsecured business loan financing options do not require security over assets or property. These types of loans are great for businesses that do not own many assets and would prefer not to offer security or for a business that needs funding quickly. An unsecured loan can be arranged quickly with facilities from £2,000 up to £500,000+.

Key features

  • Security not required over assets or property

  • Available for new start or established businesses

  • Simple process with no asset or property valuations required

  • Receive funds within 48 hours

  • Property ownership not necessary

Examples of uses for an unsecured business loan

  • Purchase stock

  • Pay a VAT bill

  • Seasonal cashflow issues

  • Invest in an aspect of your business

  • Recruit and train staff

  • Outright purchase of vehicles, machinery or equipment

  • Marketing campaigns

  • New technology and systems

  • Refurbishment or property costs 

Advantages of an Unsecured Business Loan

  • Quick and easy to apply for with funds being available soon after approval 

  • No personal or business assets at risk 

  • Flexible repayments – from a few months to 5 years 

  • Available for established businesses and relatively new entities 

  • No limitations on how the loan is used within the business 

Disadvantages of an Unsecured Business Loan 

  • A personal guarantee is likely to be required if the borrower is a limited company, LLP or plc 

  • Interest rates will be higher than that of a secured loan 

  • Not ideal for a start-up business 

  • The funding available 

  • If you have a poor credit score, either as an individual or business, you may not be eligible 

  • Rates can vary throughout the market

Frequently Asked Questions

Would I be eligible for an unsecured loan?

Typical lender requirements for an unsecured loan include:

  • Have been trading in the UK for at least 3 months 

  • A minimum annual turn over of £10,000 

  • Operate a UK bank account 

  • Trade as a limited company, limited liability partnership, sole trader or partnership 

  • Most applications will be subject to credit scoring, both your business and individually.

What information is required to apply for an unsecured loan?

Whilst documents required from lender to lender, you will likely need to provide: 

  • Bank Statements 

  • Personal identification and address verification documents 

  • Latest filed abbreviated accounts

  • A breakdown of finance facilities   

 

For larger applications, or if your business is new or performance changed since your last filed accounts, you may need to provide management accounts including a profit & loss, balance sheet as well as debtor and credit lists. 

What interest rate will I be charged? 

The interest charged will vary from lender to lender and from customer to customer. Typically interest is charged at a fixed rate, so regardless of interest rate movements by the Bank of England, the interest payable will not change. 

 

 

Can I repay early? 

Most likely you will be able to repay early, although some lenders may charge some, or all, of the interest payable under the agreement. 

 

 

How long will it take to get my funds? 

Assuming you have all the information the lender needs, you could get funding the same day. 

 

 

What is a Personal Guarantee? 

A personal guarantee is a promise to pay all your company's liabilities to a lender, meaning that if your company misses a payment, the guarantor may be required to repay the company's funding in full. You should take legal advice if you have any concerns or questions about the terms of a personal guarantee.  

 

I am a sole trader, can I borrow? 

Yes you can, although some lenders will only advance amounts above £25,000. 

All businesses, credit histories and assets considered. Find out if we can help.