Unsecured Business Loans
Unsecured Business Loans, including merchant cash advances, revolving credit facilities, business overdrafts, and business credit cards, offer a flexible and accessible funding solution for businesses. These loans are particularly suitable for companies requiring a quick cash boost or working capital support.
Discover your funding options
Check your eligibility for an unsecured business loan with our online form without affecting your credit score.
*This loan example is for illustrative purposes only. All finance and quotes are subject to status and income. Click here to check your eligibility to receive options tailored to your circumstances.
Loan Details
These loans don't require company assets as security, making them a viable option for businesses without significant assets or those preferring not to offer collateral. However, personal or director's guarantees might be required.
Eligibility and Application Process
Businesses registered in the UK for at least six months and with a minimum turnover of around £5,000 per month are generally eligible. The application process may involve submitting recent business account statements, annual returns, HMRC accounts, trading history, and a personal guarantee from a director.
Loan Amounts and Terms
Loan amounts typically range from £5,000 to £250,000. The specific amount available depends on the annual revenue, credit score, and financial situation of the business.
Additional Loan Types
Apart from traditional unsecured term loans, other options include merchant cash advances, revolving credit facilities, overdrafts, and business credit cards. These alternatives provide various levels of flexibility and access to funds, based on the business's requirements and credit history.
Utilisation
Funds can be used for diverse business purposes like repairs, stock purchases, working capital, technology upgrades, product development, staff recruitment, and managing cash flow.
Interest Rates and Repayment
Interest rates and repayment terms vary based on the lender and the financial product chosen. The focus is on providing tailored solutions that align with the business's cash flow and operational needs.
Frequently asked questions
What is an unsecured business loan?
An unsecured business loan is a type of financing where a business can borrow money without having to secure it against any asset. It’s typically used for business expansion, purchasing inventory, or managing cash flow.
Who can apply for an unsecured business loan?
Any UK-registered business, including sole traders and limited companies, can apply. Generally, businesses need to have been operational for at least six months and have a minimum monthly turnover of around £5,000.
What is the typical loan amount for an unsecured business loan?
Loan amounts vary, but most unsecured business loans range from £5,000 to £500,000, depending on the lender and the financial health of your business.
How does the repayment work?
Repayments are usually made monthly and are comprised of the principal amount plus interest. The terms can vary but typically range from one to five years.
What is the interest rate for an unsecured business loan?
Interest rates can vary widely based on the lender, the amount borrowed, and the creditworthiness of the business, usually starting around 7% APR.
Are there any fees associated with unsecured business loans?
Some lenders may charge origination or processing fees. It’s important to check with the lender for any additional fees before agreeing to the loan.
Can I repay my loan early?
Many lenders allow early repayment, but it’s advisable to check if there are any early repayment charges.
Is a personal guarantee required for an unsecured business loan?
Often, lenders require a personal guarantee from the business owner or directors, which means they’re personally responsible for repaying the loan if the business fails to do so.
How long does it take to get an unsecured business loan?
The time can vary, but some lenders offer decisions within 24 hours with funds potentially available within days.
What documents are needed to apply for an unsecured business loan?
Typically, lenders require business bank statements, profit and loss accounts, HMRC accounts, and sometimes a personal guarantee from a director.
Get an unsecured business loan
Limited companies can receive a loan decision without impacting their credit score. This allows you to evaluate your options without worry.
