Sigma Lending review: unsecured working capital loans for UK limited companies

Sigma Lending is a London based lender that provides unsecured working capital loans to established UK limited companies. It is one of the newer names in small business lending and focuses on fast decisions, an online application and the option to top up or repay early. Smart Funding Solutions is an independent broker and is not part of Sigma Lending. Sigma Lending is one of the lenders on our panel, so we can show you how its offer compares with the rest of the unsecured market.

01About Sigma Lending

Sigma Lending is registered in England and Wales and has its office on Buckingham Palace Road in London. Its leadership team describes long careers in credit, lending, structured finance and financial markets, and says its aim is to help SMEs across the UK access loans in a fast, simple and flexible way while lending responsibly.

Rather than asking for a stack of paperwork, Sigma asks applicants to connect their business accounts so it can see trading data directly. It also says it has a UK based support team and experience of funding businesses in a range of industries.

02What Sigma Lending funds

Sigma offers one main product: an unsecured business loan for working capital. Its website gives a range of £5,000 to £150,000.

Sigma says the money can be used for any legitimate business purpose, giving examples such as building up stock, hiring staff or creating a cash buffer. That makes it a general purpose working capital loan rather than finance tied to a specific asset.

The cost of the loan depends on the strength of the business and the amount and term, so we do not quote figures here. Sigma says it checks eligibility with a soft credit search that does not leave a mark on your credit file, which lets you see whether you are likely to qualify before a full application.

03Who Sigma Lending suits (and who it may not)

Sigma's published criteria are fairly specific, which makes it easier to judge fit before applying:

• Good fit: UK limited companies that have been trading for at least one and a half years.
• Good fit: businesses with annual turnover of £150,000 or more that need a short-term cash injection.
• Good fit: directors who do not own a home but are prepared to give a personal guarantee.
• Less likely to fit: sole traders and partnerships, as Sigma lends to limited companies only.
• Less likely to fit: start ups and businesses below the turnover threshold.
• Less likely to fit: borrowers who want a longer term loan to spread repayments over several years.

If you are not a homeowner, our page on business loans for non-homeowners explains which other lenders may consider you.

04What Sigma Lending looks at

Sigma's application is online and built around connected data. Based on its website, you should expect it to look at:

• Company registration and trading history, with at least 18 months of trading.
• Annual turnover of at least £150,000.
• A UK business bank account, connected so Sigma can review transactions.
• Director details and credit history, through an initial soft search.
• The directors' willingness to provide personal guarantees.

A personal guarantee means a director can be personally liable if the company cannot repay. Read our guide to personal guarantees before you sign one with any lender.

05Pros and cons

Pros

• Unsecured, so no charge over property or business assets.
• Homeownership is not required.
• Clear published criteria on turnover and trading history.
• Funding within 24 hours of a successful application.
• Early repayment, term changes and top ups are allowed.

Cons

• Limited companies only.
• Requires 18 months of trading and £150,000 turnover.
• Short terms mean higher monthly repayments than a longer loan.
• Directors must give personal guarantees.
• A newer lender with a shorter track record than many established alternatives.

06Applying through a broker vs going direct

Sigma's application is simple, so why use a broker? Mainly because short-term unsecured loans vary widely in cost and structure. Two lenders can offer the same amount with very different total repayments, terms and conditions. Comparing several at once shows you whether Sigma is the best value for your business or whether a longer term or cheaper option is available.

We search the market, present your figures to suitable lenders and manage one application on your behalf. It is free to enquire; any broker fee is disclosed separately before you proceed. Use our Instant Quotes tool to compare lenders in minutes.

07Alternatives to Sigma Lending

• iwoca can suit smaller and younger businesses that need a flexible credit line rather than a fixed sum.
• Fleximize is worth comparing if you want a longer term to spread repayments.
• Swishfund is another unsecured lender for limited companies that is worth a side by side quote.

You can read more on Sigma Lending's website. Any firm's details can be checked on the FCA Register.