Cubefunder review: short term unsecured loans for limited companies

Cubefunder is a small business lender that focuses on one thing: short-term unsecured loans for limited companies, decided quickly from bank statements rather than business plans. Its low trading history requirement makes it one of the more accessible options for young companies. Cubefunder is one of the lenders on our panel, and as an independent broker we can compare it with other unsecured lenders before you apply. You can read more on Cubefunder's own website.

01About Cubefunder

Cubefunder is a trading name of Tallaght Financial Ltd, a company registered in England and Wales and based in Windsor, Berkshire. It lends to limited companies across a wide spread of industries, naming hospitality, construction, retail, ecommerce, hair and beauty, dentistry, motor repair, hotels and manufacturing among the sectors it has funded.

Its process is built for speed. Cubefunder says the online application takes under a minute, that its team aims to be in touch within 30 minutes, and that funds can arrive within 48 hours of approval.

Smart Funding Solutions is an independent broker and is not part of Cubefunder.

02What Cubefunder funds

Cubefunder offers a single core product, a flexible unsecured business loan, which can be used for most business purposes:

Typical uses include buying stock ahead of a busy season, covering a gap while a large customer pays, a small refit, or marketing. Personal guarantees from directors are common with this type of unsecured lending, and Cubefunder does not ask for property security.

03Who Cubefunder suits (and who it may not)

Cubefunder's published criteria are:

• A limited company registered in England or Wales.
• At least three months of trading.
• Monthly revenue of at least £4,000.

That makes it a realistic option for young companies that are too new for most mainstream lenders, and for smaller businesses whose turnover falls below the thresholds other fast lenders set. Non homeowner directors may also find it more accessible than lenders that want property behind a guarantee.

It will not suit sole traders, partnerships or companies registered in Scotland or Northern Ireland, based on its stated criteria. It is also a poor fit for long term investment: a 12 month term on a sizeable loan means high monthly repayments, so make sure your cash flow can carry them comfortably.

A simple test helps. Work out what the monthly repayment would be, then look at your three quietest months of the last year. If the repayment would still fit without dipping into your overdraft or delaying suppliers, a short-term loan may be manageable. If not, a longer term product, or a smaller amount, is usually the safer choice, even if it takes a little longer to arrange.

Typical uses include buying stock ahead of a busy season, covering a gap while a large customer pays, a small refit, or marketing.

04What Cubefunder looks at

Because Cubefunder works mainly from bank statements, the way your account is run matters a lot. Typical checks for this type of loan include:

• Several months of business bank statements showing regular income.
• Average monthly revenue against the £4,000 minimum.
• Returned payments, gambling transactions or heavy reliance on other short-term lenders.
• Company and director credit searches.
• Any HMRC arrears and how they are being managed.

These are typical for short-term unsecured lending rather than a published Cubefunder checklist. Keeping business and personal spending separate, and avoiding unarranged overdraft use in the months before you apply, makes your statements easier for any underwriter to read.

05Pros and cons

Pros

• Low entry criteria: three months of trading and £4,000 monthly revenue.
• Fast process, with funds typically within 48 hours.
• No property security and no business plan needed.
• Lends across a wide range of sectors.

Cons

• Limited companies in England and Wales only.
• Short terms mean high repayments relative to the loan.
• Short-term unsecured borrowing usually costs more than longer term loans.

06Applying through a broker vs going direct

Cubefunder's application is quick, but a quick yes is not always the best deal. We compare small business loans and other unsecured business loans across the market, present your case once and only approach lenders whose criteria you meet, which avoids a string of declined applications. If you do not own property, our guide to business loans for non-homeowners explains your options.

It is free to enquire; any broker fee is disclosed separately before you proceed. You can use Instant Quotes to compare lenders in minutes.

07Alternatives to Cubefunder

• iwoca: a revolving credit line that can suit businesses wanting to draw and repay smaller amounts repeatedly.
• Capify: better suited to established businesses with 12 months of trading that need larger amounts or a secured option.
• Credit4: worth comparing if you want a person to underwrite the case and a longer term on a larger amount.