Unsecured Business Loans

With an unsecured company loan in the UK, you can get funding immediately without having to put up any property as collateral.

Small and developing firms that wish to borrow money while keeping their assets protected can benefit from unsecured business loans.

Smart Funding Solutions have access to a multitude of direct lenders to help find you the best unsecured business loans.

What is an unsecured business loan?

An unsecured business loan is one that does not require the borrower to put up any collateral. Businesses who pick this funding option are not at risk of losing valuable business equipment, property, or land because the loan is unsecured.
Unsecured business loans provide a simple financial solution for UK companies. You can potentially borrow up to £500,000 without putting your company’s assets up as collateral.

Businesses who lack assets or do not wish to secure them against a loan might use a business loan without security as a flexible source of capital. You can get money quickly – often within a few hours – and then pay it back over a certain period of time.
Using experienced finance brokers will make the application process simple, quick and stress free. We try to offer more than one option for businesses when it comes to unsecured business loans as there’s numerous routes to funding with different product offerings.

The government has recently announced the recovery loan scheme has been extended until August 2024, giving opportunity for more SMEs to access funding. The difference this time round is the recovery loan scheme will require you to sign a personal guarantee.
We can look to offer a number of different products, from revolving credit facilities, merchant cash advances, startup loans, asset finance, vat loans and more. These products can be short term or long term depending on your plans moving forward. Unsecured business loans are available to a limited company, sole trader and LLP.
Request your free unsecured business loan quote:

Want to find out more or apply?

Contact options:

Enquiry Form

How does it work?

Unsecured business loans operate by giving your company cash up front without requiring collateral. The loan is usually repaid in monthly or quarterly instalments over a certain length of time.. There are many unsecured business loans available for UK businesses with adjustable terms.

The repayment schedule for an unsecured company loan is simple. After agreeing to make regular fixed monthly repayments at a pre-determined interest rate, you borrow money from a lender. Payments are made during the course of the loan until the entire amount borrowed is repaid. Interest rates on unsecured loans can be higher than a secured loan.

There are no assets backing unsecured company loans. As a result, they constitute a bigger risk to the lender, resulting in higher interest rates. Secured loans, on the other hand, are financial products that require firms to put up collateral as a condition of borrowing.

Why take an unsecured business loan?

There are numerous advantages to using unsecured business financing. An unsecured business loan could be the fast, flexible, and easy funding solution you’ve been seeking for if you need a quick injection of cash for your firm without putting up any collateral.

Unsecured company loans have the following advantages:

Unsecured business loans have numerous advantages for enterprises in the United Kingdom. A number of major advantages are available to both well-established enterprises and relatively fresh ventures.
There are no assets necessary, therefore funding can be made available faster than with other types of business loans. Assets provide a highly accessible source of capital for business owners because they do not require security.

Use for any purpose – There are no restrictions on how you can use this sort of business loan, whether you want to buy new equipment, expand your product line, support employee training, or break into new markets in the UK or abroad.
Faster approval and funding – Because an unsecured business loan does not demand an asset or collateral as security, your rapid business loan could be approved in a matter of hours. You may be eligible for an unsecured loan of up to £500,000 or more, depending on your circumstances.

Do you qualify for an unsecured business loan?

You must have been trading for at least 4 months and have a minimum yearly turnover of £10,000 to qualify for an unsecured business loan in the UK. If you are a sole trader we may still be able to assist with funding depending on the circumstances.

A personal guarantee may be required, however it may allow you to obtain larger levels of funding. If your circumstances change and your business is unable to repay the loan, the personal guarantor may be obliged to reimburse the remaining debt according to the terms of the loan.

Why choose Smart Funding Solutions?​

Will a personal guarantee be required?

Potentially. A personal guarantee is a legal agreement in which the business owner or director agrees to be personally accountable for the repayment of any debt if the company is unable to repay the loan.

The ‘guarantor’ is the company owner or director. It can be done with or without backing, such as a legal charge on the guarantor’s personal property.

A PG can vary according on the lender. Some people will demand on a PG with supporting security, while others will not; it’s a good idea to talk about the conditions of any arrangement if it’s required to acquire business financing.

Any shareholders and directors having at least a 20% – 25% shareholding in the limited business will likely be requested to give a PG. It’s very rare nowadays for a guarantee on an unsecured loan to not be requested by the lender.

It’s important to remember that defaulting on an unsecured loan can have an effect on both your business credit score and personal credit score.

Which documents do you need to apply?

How do you get the best rate?

Comparing loan rates is an important element of finding the best deal for your company. It does not, however, focus solely around the top figures. There are distinctions between secured and unsecured company loans, each with its own set of benefits and drawbacks to consider.

Based on payback values, the advantages of one sort of business loan product may outweigh those of others. Consider a standard commercial bank loan, which may be costly and time-consuming to process. Alternative lenders may be able to provide you with speedier funding, less paperwork, and more creative repayment choices if you apply for an unsecured business loan. This is why unsecured company loans should constantly be compared – this is something we will do for you.

We understand how time-consuming it may be to compare loan options, lenders, and rates. We try to simplify this process by doing the legwork for you and locating the finest loan programme for your business. The rate you are offered will come down to several factors, such as: trading history, credit ratings, cash flow and financial accounts.

Do you need a perfect credit score?

When you have a bad credit history, it might be more difficult to obtain a business loan. For fraud and affordability considerations, the lenders on our panel will run a soft and/or hard credit check on your application.

Business owners with a poor credit history who have sought and failed to obtain finance from a traditional bank may not know where to turn. This is why, for many business owners, alternative business borrowing from our network of lenders can be a lifeline.

A bad credit history is an unfortunate reality of business. It occurs for a variety of causes. It’s practically unavoidable during a company’s lifetime for customers to fail to pay you on time, and for your organisation to be unable to pay suppliers.

In some circumstances, repairing a flaw in your credit history and improving your total credit score might be rather simple. It’s recommended checking this out before you submit your application to ensure you’re eligible.

Don’t let this deter you from applying for a business loan online. With a weak or poor credit history, we’ve assisted many businesses in obtaining an unsecured business loan.

How long does it take to be approved?

Unsecured business loans are typically quicker to obtain than secured company loans, and final approval can be obtained in as little as a few days. In most circumstances, you will be able to get funds the same day you complete your loan application.

Secured loans, unlike unsecured loans, take longer to organise. This is because you’ll need to arrange for an independent valuation of the asset you’re using as security, which can take time. Unsecured loans, on the other hand, promise speedier funding. Many of the financing solutions we provide are same-day business loans.

Enquire now to see how we can support your business.

Apply for an unsecured business loan

Request a call back

Call our friendly team

Frequently Asked Questions

keep it blank

An Unsecured Business Loan is a type of financing that does not require business owners to provide collateral, such as property or equipment, as security for the loan. It relies more on a borrower’s creditworthiness and financial stability.

Once an Unsecured Business Loan is approved, the lender provides the borrower with a lump sum, which is then repaid, along with any interest and fees, over the agreed term.

Any business owner or entrepreneur can apply for an Unsecured Business Loan, provided they meet the lender’s eligibility requirements, such as having a favourable credit score and showing the capacity to repay the loan.

The amount you can borrow depends on the lender’s assessment of your creditworthiness and your business’s financial strength. Loan amounts can range from a few thousand pounds to several hundred thousand.

The time it takes to secure an Unsecured Business Loan varies depending on the lender and the specifics of your application. Some online lenders offer quicker approval processes compared to traditional banks.

Interest rates for Unsecured Business Loans can vary significantly based on factors such as the lender, your credit score, and the loan term and amount. You should compare offers from different lenders to find the most competitive rates.

keep it blank

To qualify for an Unsecured Business Loan, you typically need a good credit score, a solid business plan, and financial statements that demonstrate your capacity to repay the loan.

Unsecured Business Loans can be used for a wide range of purposes, such as expanding your business, purchasing equipment, or managing fluctuations in cash flow.

Repayments are made through regular instalments over the agreed term of the loan, consisting of a portion of the principal amount and the interest.

In many cases, early repayment is allowed. However, some lenders might charge an early repayment fee. It’s essential to review the specific terms of your loan agreement.

Failure to repay an Unsecured Business Loan could result in late payment fees, severe damage to your credit rating, and potentially legal action. If you’re having difficulty making repayments, it’s vital to contact your lender promptly.

An Unsecured Business Loan can be an excellent financing option for businesses without valuable assets or those unwilling to use their assets as collateral. However, you should carefully assess the terms, interest rates, and your ability to repay before deciding.

Call our friendly team - we're happy to help